U.S. markets rebound during Jan. 9-13 trading period

The Dow Jones Industrial Average gained an impressive 672 points or 2% during the Jan. 9-13 trading week to close at 34,302.61, and the S&P 500 gained 104.01 or 2.7% over the week to 3,999.09.

The week’s top value gainer was Southern Copper, which added US$9.66 to close at US$77.06. On the heels of the rising price of copper, Southern Copper shares have already gained 25% this year. A falling U.S. dollar and the re-opening of China are two bullish catalysts that are likely to continue this year. Meanwhile, the EV transition continues to accelerate, and the Biden administration’s Infrastructure, CHIPS & Science, and IRA Acts are long-term positive catalysts buoying the issuer. On Jan. 13, institutional investor U.S. Capital Wealth Advisors boosted its position by 24.5% in the third quarter of 2022. The copper-price-leveraged company reported a profit of US$7.15 billion in 2021. The figure is expected to fall in 2022, but only because the company has made expansive investments in its mines throughout Mexico and South America. These investments are expected to yield more profit over the long term in a rising copper price environment.

Gatos Silver was the trading week’s top percentage gainer, closing 20.6% higher at US$5.16 per share. On Jan. 11, the company reported its best quarter and calendar year in terms of silver production from its 70%-owned Cerro Los Gatos mine, allowing the company to beat its 2022 production guidance comfortably. The Mexico-focused silver miner outputted a record 10.3 million oz. for the year, up 36% from the 7.6 million oz. produced in 2021, and 7% higher than the upper end of its most recent 2022 guidance range of 9.35-9.65 million oz. The 2022 production guidance was raised in October from the initial range of 8.5-9 million oz. A crucial part of Gatos Silver’s annual guidance beat was a record fourth-quarter production of 2.9 million oz., up 26% from 2.3 million oz. from Q4 2021 and surpassing the previous record of 2.7 million ounces achieved in Q3 2022.

The week’s most traded issuer was Vale, the world’s top nickel miner and the second-largest iron ore producer. The equity saw 106.9 billion shares change hands. MINING.com reported on Jan. 10 that Vale had shortlisted suitors for 10% of its base metals business, estimated to be worth nearly $2.5 billion. The Brazilian miner, who hired advisers to assess options for the unit last year, told the Financial Times that top bidders included carmakers, state investors and pension funds. The stake sale is part of Vale’s decision to separate its iron ore operation from its copper, nickel and platinum assets, into a new firm named Vale Base Metals that will be based in the U.K., according to Brazilian media. The spin-off, yet to be approved by the board, would have independent governance and a board that includes deep underground mining and electric-vehicle specialists.