The Dow Jones Industrial Average rose 4.42% to finish the trading week at 29,479.81 and the S&P 500 climbed by 2.16% to 3,585.15. Spot gold dropped US$60.60 per oz., or 3.11%, to US$1,889.20 per oz. from the previous week.
Shares of Vale fell US9¢ to US$11.68 per share. The company and China’s Ningbo Zhoushan port have signed a deal to jointly invest around 4.3 billion yuan (US$651 million) in iron ore storage and processing facilities in Zhejiang. Vale and Ningbo Zhoushan port will each hold a 50% interest in the joint venture, which will have a registered capital of 1.5 billion yuan (US$227 million). The move follows the two firms’ inauguration of a grinding hub at the port in eastern China in August. The construction of an iron ore storage yard, with a maximum capacity of 4.1 million tonnes, an ore blending and processing facility with annual capacity of 21 million tonnes of ore, and two shipping berths are now proposed.
Hecla Mining dropped US26¢ to US$5.33 per share. The company announced third-quarter results with production of 3.4 million oz. silver and 41,174 oz. gold, generating US$49.7 million in free cash flow. Its production outlook for 2020 is 12.8-13.4 million oz. silver and 200,000-207,000 oz. gold. It also reported that the ramp-up of its Lucky Friday silver mine in Idaho is ahead of schedule and the mine will return to full production this quarter. During the third quarter, Lucky Friday produced 636,389 oz. of silver, up from 115,682 during the same period last year. The mine is forecast to produce more than three million oz. of silver in 2021.
Shares of Harmony Gold Mining fell US$1.02 to US$4.81 per share. The South Africa-based company announced that free cash flow in the first quarter of its 2020-2021 financial year nearly tripled year-on-year. The increase was driven by greater production and a surge in the gold price. Harmony said operating free cash rose to US$118.15 million during the three months ended Sept. 30, compared to US$39.58 million in the previous quarter. Gold output rose 38% to 313,725 ounces. “A solid operational performance, further aided by the gold price, has significantly strengthened our balance sheet, allowing us to achieve an operating free cash flow margin of 20%,” Peter Steenkamp, Harmony’s CEO said in a news release.
Be the first to comment on "US markets up, Nov. 9-13"