U.S. markets rise, March. 1-5

The Dow Jones Industrial Average rose 1.82% to 31,496.30 and the S&P 500 gained 0.81% to finish the trading week at 3,841.94. Spot gold dropped US$35.50 per oz. to US$1,700.10.

Gold Fields rose 14.4% to US$9.37. The company announced that the National Energy Regulator of South Africa had approved its electricity generation licence, which will allow Gold Fields to build a 40 megawatt solar power plant at its South Deep mine. The solar plant has the potential to provide about 20% of South Deep’s average electricity consumption, according to Gold Fields. The licence approval, said CEO Nick Holland, “sends a strong, positive message to mining companies and their investors, potentially leading to decisions being taken to sustain and grow mining operations in the country, especially in deep-level, underground, marginal mines.” Holland also noted that “enabling companies to generate their own power also gives Eskom room to address operational issues at its power plants,” and noted that “power from the South Deep solar plant will partially replace coal-fired electricity from Eskom enabling us to significantly reduce our Scope 2 carbon emissions.” Last year Gold Fields implemented solar and wind power plants, backed by battery storage, at two of its mines in Australia, Agnew and Granny Smith. It also committed to renewables at its other Australian mines, Gruyere and St Ives, as well as at its Salares Norte project in Chile when it starts operations in 2023. The company is also reviewing renewable energy options at all of its other mines.

Shares of Cleveland Cliffs increased 78¢ to US$14.12. The company reported consolidated 2020 revenues of US$5.4 billion, up from US$2 billion in 2019. Cleveland Cliffs posted a net loss of US$81 million, which included US$186 million of acquisition-related, amortization of inventory step-up and severance costs. The 2020 net loss compares with net income in 2019 of US$293 million, which included US$9 million of acquisition-related and severance costs. For the full year, adjusted earnings before interest, taxes, depreciation and amortization totaled US$353 million, compared to US$525 million in 2019. “Without question, 2020 was the most transformational year in our company’s 173 year history,” CEO Lourenco Goncalves said in a news release. “We completed two seminal acquisitions, AK Steel and ArcelorMittal USA, that transformed us from an iron ore miner into the largest flat-rolled steelmaker in North America. We also completed our Toledo direct reduction plant, which began operations in the fourth quarter.”

Harmony Gold’s shares rose 14.2% to US$4.33. The company announced that Fairtree Asset Management has acquired shares in the company that bring its total ownership to 5.04%.