U.S. equities gain, Feb. 16-20

U.S. stocks rose after the Greek government secured a four-month extension to its debt bailout package, pushing the S&P 500 Index up 0.7% to close at 2,110.30, while the Dow Jones Industrial Average advanced 0.6% to 18,140.44, its highest close this year. The Nasdaq Composite Index rose 1.3% to 4,955.97. The gold spot price finished at US$1,202.40 per oz., down US$25.50 per oz., while the Philadelphia Gold & Silver Index sank 3.6% to 74.28. 

As the prices of gold and silver declined last year, high-cost miners struggled to narrow their losses. The largest U.S. silver producer, Coeur Mining, reported a 2014 net loss of US$1.2 billion — or US$11.28 per share, including a US$1-billion after-tax impairment charge — as it reassessed its reserves at lower metal prices in the fourth quarter. The adjusted loss came in at US$112 million, or US$1.09 per share, up from a US42¢-per-share loss in 2013. Coeur produced 17.2 million oz. silver and 249,384 oz. gold last year from its five mines, at all-in sustaining costs of US$19.27 per equivalent oz. silver. The miner tumbled 20% to US$5.84 per share.

Pan American Silver posted a full-year net loss of US$545 million, or US$3.60 per share, including a US$500-million after-tax writedown in the fourth quarter. Adjusted loss was US$21 million, or US14¢ per share, above an expected US6¢-per-share loss. The miner reported record annual production of 26 million oz. silver and 161,500 oz. gold at cash costs of US$11.42 per oz. silver, below the company’s US$11.70 per oz. guidance on a by-product basis. 

Cowen and Co. analyst Adam Graf says the miner has lost nearly US$200 million in two years, despite silver-equivalent production increasing by 30% due to lower metal prices.

Pan American recently promoted Michael Steinmann as its new president. Steinmann previously worked as the executive vice-president of corporate development and geology. Its shares closed the week down 16% to US$10 per share. 

Shares of Timmins Gold fell nearly 17% to US84¢ after news it would buy Newstrike Capital in a $140-million share-and-cash deal closing in April. The company is looking to add Newstrike’s Ana Paula gold project to its development pipeline in Mexico. 

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