US markets steady in Feb.28 to March 4 period

U.S. equities failed to make up much ground in the Feb. 28 to March 4 period after losses the period before, but they also managed not to lose more ground as oil prices stayed high and mid-east instability continued. The S&P 500 eked out a 1.27-point gain to end at 1,321.15 points, while the Dow Jones industrial average gained 39.43 points, or 0.3%, to end at 12,169.88.

Precious metal stocks fared a little better, with the Philadelphia Gold and Silver index edging up 3.65 points or 1.7% to 215.86 as gold went up US$18.90 per oz to US$1428.20 per oz. And though gold stocks dominate the index, silver played its part as the metal climbed US$2.29 per oz. or 6.9% to US$35.67. Silver winners in the period included Coeur d’Alene Mines, climbing US$7.05 to US$34.70 for the highest overall gains of the week; Silver Wheaton up US$4.33 to US$44.96 on the second highest gains; Silver Standard gaining US$3 to US$29.60; and Endeavour Silver up US$2.16 or 30% to US$9.34. Of course, the silver price itself was not the only driver for these stocks, with a number of companies reporting earnings.

Silver Wheaton announced 2010 earnings of US$290.1 million and its first dividend of US$0.03 per share. Fourth quarter earnings more than doubled compared with the same quarter in 2009 to US$123 million, while operating cash flow was up 76% to US$124.7 million. Looking to 2011 the company expects attributable production of 27 to 28 million silver equivalent oz., a 15% increase over 2010.

Silver Standard had net earnings of US$346.2 million in the year after producing 6.3 million oz. silver, while it expects to produce 8.5 million oz. silver in 2011. The company also reached an agreement to acquire the rest of its San Luis gold-silver project in Peru from its joint venture partner.

Endeavour Silver was up after releasing an updated resource estimate for its Parral project in Mexico’s Chihuahua State. Indicated resources now stand at 1.6 million tonnes grading 49.39 grams silver per tonne, 0.9 gram gold per tonne, 0.15% copper, 2.87% lead and 2.86% zinc for a net smelter return per tonne of US$75.38; inferred resources came in at 1.3 million tonnes grading 63.47 grams silver, 0.88 gram gold, 0.2% copper, 2.55% lead and 2.28% zinc for an NSR of US$73.77.

In non-precious metal news, Cliffs Natural Resources was up US$3.89 to US$99.12 after announcing that Consolidated Thompson Iron Mines‘ shareholders had approved the take-over by Cliffs at $17.25 per share and final court approval had also been received. Cliffs gains full control of the Bloom Lake iron ore project near Fermont Quebec in the Labrador trough as well as the Lamêlée-Peppler project 50 km southwest.