US markets end in the red, May 9-13

Concern about domestic and global growth sent the Dow Jones Industrial Average and the S&P 500 Index into the red for the third straight week. The Dow fell 1.12% to 17,535.32 and the S&P dropped 0.51% to 2,046.61. The price of U.S. crude touched a six-month high of US$47.02 per barrel on May 12 before ending the week at US$46.21. The Philadelphia Gold and Silver Index lost 1.75% to close at 86.98.

Eldorado Gold announced that its Greek subsidiary, Hellas Gold S.A., received government approval of the updated technical study for its Skouries project in northern Greece. The approval enables Hellas Gold to re-start construction activities that were suspended in January. The company also reported first quarter results, with 140,989 ounces of gold produced at an average cash operating cost of US$603 per oz., compared with 189,414 ounces at US$521 per oz. in the first quarter of 2015. Eldorado’s adjusted net loss for the quarter came to US$0.7 million compared to net earnings of US$19.5 million in the same quarter of 2015. As of March 31, the company had liquidity of US$611.3 million, including US$236.3 million in cash and equivalents and term deposits, and US$375.0 million in unused lines of credit. Eldorado’s shares climbed 18.5%, or US76¢, to US$4.87 per share.

First Majestic Silver Corp. reported that profit margins increased during the first quarter due to cost savings and operational improvements across its business.  The company posted adjusted earnings of US$4.6 million, compared to a loss of US$0.3 million in the first quarter of last year. First Majestic produced 3.1 million oz. silver, an 11% increase year on year, with silver-equivalent production of 5.1 million oz., or a 30% increase over the first quarter of 2015. All-in sustaining costs worked out to US$8.97 per payable silver oz., a 35% reduction compared to the first quarter of 2015 and a 20% reduction compared to the fourth quarter of 2015. Cash and equivalents at the end of March 31 stood at US$61.7 million, representing a US$10.7 million increase compared to the previous quarter. Eldorado also closed a bought deal financing (5.25 million shares at $10.95 per share for gross proceeds of $57.49 million). The money will be used to expand the mill and mine at La Guitarra to 1,000 tonnes per day; advance the roasting analysis and testing at the La Encantada mine; and increase the amount of development and exploration across the company’s six operating mines. First Majestic’s shares climbed 3.3%, or US34¢, to US$10.70 per share.