U.S. markets fall during May 16-20 trading week

The Dow Jones Industrial Average fell 961.52 points or 3.1% to 31,261.90 over the week, with the S&P 500 retreating by 106.65 points or 2.7% to 3,901.36. 

Shares of Gold Fields fell 1.2% to US$11.44. The company, which is already dealing with the effects of inflation and the relocation of endangered chinchillas at its Salares Norte gold project in Chile is now facing potential sanctions from the country’s environmental regulator due to the deaths of culpeo foxes in the area, a species found in the Andes. 

The Superintendency of the Environment (SMA) has ordered the company to implement a series of “urgent” and “transitory” measures after the miner reported three incidents around the project that included the deaths of three culpeo foxes. The SMA boss, Emanuel Ibarra, said its office constantly monitors the environmental impact of the Salares Norte project, which is located at 4,200 metres above sea level, in the dry Atacama region.

 “Given the environmental risk tied to the [culpeo fox] species, and bearing in mind the high degree of sensitivity of the ecosystem in which the project is located, we are asking the company to fulfill the requested demands as soon as possible,” he said in a statement. The issues the SMA is asking Gold Fields to address include submitting new reports of the three incidents, incorporating graphic records and studies from specialists, and restricting traffic speed in all the project’s interior roads to 40 km/h. 

Shares of Agnico Eagle Mines rose US$3.23 to US$53.86 as the company agreed to subscribe for 14 million units of Cartier Resources in a non-brokered private placement at a price of 13¢ per unit for total consideration of about $1.8 million. Each unit is comprised of one common share and half a share purchase warrant of Cartier. Each full warrant can be exchanged for one common share at a price of 16¢ for a period of 36 months following the closing date of the private placement.

Agnico Eagle currently owns 35.2 million common shares of the Quebec-focused gold explorer, representing 13.3% of the issued and outstanding common shares on a non-diluted basis. On closing of the financing, Agnico Eagle will hold about 17.7% of the shares on a non-diluted basis and 19.7% on a partially diluted basis, assuming exercise of the warrants held by the company. 

Shares of Barrick Gold rose US33¢ to US$20.76 as the company extended its undrawn US$3-billion revolving credit facility by one year to May 2027, while also replacing LIBOR with SOFR (Secured overnight Financing Rate) as the floating rate mechanism related to the interest rate and establishing sustainability metrics linked to the facility. 

Barrick says the sustainability-linked metrics incorporated into the revolving credit facility are made up of annual environmental and social performance targets directly influenced by its actions, rather than based on external ratings.