US markets move higher, Nov. 27 to Dec. 1

The Dow Jones Industrial Average posted its largest weekly gain since December 2016, buoyed by optimistic expectations that U.S. lawmakers were making progress on tax-cut legislation. The Dow climbed 2.9% to 24,231.59, while the S&P 500 Index gained 1.53% to finish at 2,642.22.

Peabody Energy rose US$1.21 to US$33.90 per share. The coal company completed the sale of most of its inactive Burton mine and related infrastructure to the Lenton joint venture for US$11 million. In addition to the cash proceeds, the transaction lowers the company’s asset retirement obligation by US$41 million. The sale also releases US$30 million in restricted cash in support of the asset retirement obligations. In November, Peabody amended its senior secured credit agreement and closed on commitments for a US$270-million revolving credit facility. The revolving credit facility, plus Burton’s sale, could free up US$300 million in cash.

Shares of Kirkland Lake Gold rose US48¢ to US$14.44. The company, which expects to produce 580,000 to 595,000 oz. gold this year from mines in Canada and Australia, received approval to list on the Australian Stock Exchange. President and CEO Tony Makuch said he was excited to list on the ASX on the company’s one-year anniversary of its transaction with Newmarket Gold, which brought in Kirkland Lake’s Australian assets. Since this “transformational transaction,” Makuch said, its Fosterville mine in Victoria “has emerged as one of the world’s great high-grade, low-cost gold producers.” Makuch said Fosterville is on track to produce 250,000 to 260,000 oz. gold this year at all-in sustaining costs averaging US$500 per ounce.

Harmony Gold Mining’s shares rose 2.2% to US$1.83. The company has upgraded processing infrastructure at its Hidden Valley mine in Papua New Guinea and ore processing has restarted. The shutdown occurred two weeks ahead of schedule. Mining at the stage-five cutback is a month ahead of schedule and on budget. Harmony reached an annualized mining rate of 28 million tonnes per year in October 2017 and expects to reach commercial production in the June quarter of 2018.