U.S. markets fall, Apr. 11-15

U.S. markets took a turn for the worse during the Apr. 11-15 trading week, with the Dow Jones Industrial Average falling 38.22 points or 0.31% to 12,341.83 and the S&P 500 index slipping 8.49 points or 0.64% to 1,319.68. China’s announcement at the end of the week that consumer inflation hit a 32-month high of 5.4% in March certainly didn’t help instill confidence about the outlook for commodities, and Beijing’s decision two days later to raise banks’ required reserves for the fourth time this year just added to the uncertainty. The Philadelphia Gold and Silver index dropped 10.24 points or 4.47% to 218.71. Just three companies on the New York Stock Exchange reached new 52-week highs.

Yanzhou Coal led the pack of value gains with a jump of US$1.64 to US$37.91. The coal producer is rumored to be bidding for Australian coal miner Whitehaven Coal, valued at about US$3.7 billion. Chinese news agency Xinhua reported last month that the company’s coal sales surged 30.6% year-on-year in 2010 to 49.63 million tonnes and is forecasting sales of 54 million tonnes in 2011.

Richmont Mines edged up 83¢ to US$8.32 per share on news from its Monique project, a potential small open pit operation in the Val-d’Or region of Quebec, about 10 km east of its producing Beaufor mine. Highlights from initial drilling include 6.76 grams gold per tonne over 12.9 metres, 8.07 grams gold over 10.0 metres, 4.25 grams gold over 17.1 metres, and 6.20 grams gold over 11.1 metres.  In addition it will start production from its Francoeur mine in the middle of 2011.

Minefinders Corp. rose 29¢ to US$15.60 on no news. On Apr. 6 the company reported first quarter metal production of 17,812 ounces of gold and 956,760 ounces of silver and forecasts full-year production of 65,000 to 70,000 ounces of gold and 3.3 million to 3.5 million ounces of silver. Northgate Minerals gained 13¢ to US$2.88 on news that it is on track to pour its first gold at the Young-Davidson mine, 60 km west of Kirkland Lake, late in the first quarter of 2012.  

Finally, Banro Corporation was up 13¢ to US$2.83 per share on news Apr. 14 that construction at its wholly owned Twangiza project in the Democratic Republic of the Congo is on schedule and commercial production is scheduled to start in the fourth quarter of this year.