US markets finish higher, Oct. 2-6

The U.S. Bureau of Labor Statistics reported that in the last 12 months, average hourly earnings increased by 74¢ or 2.9%. The jobs data raised expectations of a rate hike and put pressure on the gold price. The precious metal touched a two-month low during the trading week before finishing at US$1,276.10 per oz., down US$3.30 per oz. The Philadelphia Gold and Silver index was up 2.66% to 86.90. The Dow Jones Industrial Average climbed 1.65% to 22,773.67, and the S&P 500 rose 1.19% to 2,549.33.

Shares of Rio Tinto jumped US$1.89 to US$49.08. The company successfully completed the first fully autonomous rail journey at its iron ore operations in the Pilbara region of Western Australia. The nearly 100 km pilot run was completed without a driver on board, making it the first fully autonomous heavy haul train journey ever completed in Australia. The pilot run marked a significant step toward full commissioning of the AutoHaul® project in late 2018.

Sibanye-Stillwater (formerly Sibanye Gold) announced it has reached production three months ahead of schedule at its Blitz project in Montana. The completion of a secondary escape-way system at the Blitz 10 stope block concluded the final infrastructure required for production to begin, the company said. Blitz is expected to produce between 270,000 ounces and 330,000 ounces of platinum and palladium (2E) annually once in steady state production.

Four miners died at First Majestic Silver’s La Encantada silver mine in the Mexican state of Coahuila. The miners died due to gas intoxication on Oct. 1. The company reported the news on Oct. 3, explaining that the accident occurred as part of the construction of the 790 ramp. A scoop operator lost consciousness while mucking and three other miners died trying to save him. “The four men were carrying all required personal protection equipment, including safety belt breathing apparatuses, but sadly did not use the equipment,” First Majestic stated. The 790 area of the mine will remain closed until an investigation is completed. Shares of First Majestic ended the week at US$7.35 per share, up 7.5%.