US markets rise, July 22-26: Arch Coal, Agnico Eagle, Newmont Goldcorp

The Dow Jones Industrial Average rose 0.14% to finish at 27,192.45, and the S&P 500 Index jumped 1.66% to 3,025.86. Spot gold fell US$6.70 per oz. to US$1,418.30 per ounce.

Arch Coal topped the charts with a gain of US$4.79 to US$91.48. The company reported net income in the second quarter of US$62.8 million, or US$3.53 per diluted share, compared with net income of US$43.3 million, or US$2.06 per diluted share in the second quarter of 2018. The strong results were supported by the company’s core metallurgical segment. Arch Coal also returned US$70.8 million to shareholders during the quarter via buybacks and dividends.

Agnico Eagle Mines reported second-quarter results on July 24, and its shares rose US20¢ to US$53.75. Net income in the quarter came in at US$27.8 million, or US12¢ per share, up from net income of US$5 million, or US2¢ per share in the second quarter of 2018. The year-on-year increase in net income mainly owed to lower amortization, lower income and mining taxes, and higher realized gold prices, partly offset by lower gold sales volume (which did not include pre-commercial production ounces at Meliadine or Amaruq), the company said. Highlights of the quarter included commercial production announced on May 14 at its Meliadine mine in Nunavut. Amaruq, also in Nunavut, is scheduled for commercial production in the third quarter of 2019. The company expects to produce a total of 1.75 million oz. gold in 2019, including pre-commercial production from Meliadine and Amaruq. It anticipates total cash costs this year will amount to US$620 to US$670 per oz., and all-in sustaining costs of between US$875 and US$925 per oz. gold.

Newmont Goldcorp reported second-quarter results on July 25, and its shares ended at US$37.28, down US$2.01, or 5.1%. The company’s net income reached US$1 million, or zero per diluted share, in a US$273-million decrease from the comparable second quarter of 2018, mainly due to integration costs associated with the Newmont Goldcorp and Nevada joint-venture transactions, costs incurred while the Penasquito and Musselwhite mines were not operational, higher interest expense, and a prior year gain from the sale of the company’s royalty portfolio in June 2018. These were partly offset by higher average realized gold prices.