US markets post gains, Dec. 11-15

Gold closed at US$1,255.10 per oz., up US$6.90 per oz. on the week. The Philadelphia Gold and Silver Index rose 4.1% to 80.23 and the Dow Jones Industrial Average rose 1.31% to 24,651.74, while the S&P 500 Index rose 0.91% to 2,675.81.

Shares of Southern Copper rose US$1.33 to US$43.32 as a three-week strike at its Peruvian operations ended. Workers for the two largest unions, together comprising more than 3,000 members, started the strike in late November demanding higher profit shares. The strike affected the company’s two Peruvian mines: Cuajone and Toquepala.

The Peruvian labour ministry declared the strike illegal while protesters gathered on train tracks used to move copper concentrate to the refinery. Police arrested 24 workers and injured three others with tear gas and rubber bullets shortly after the protests began. Three smaller unions did not participate in the strike and the company said production was not affected.

Shares of McEwen Mining rose 14.2% to US$2.09. Construction is underway at its Gold Bar project in Nevada where the company wants to enter commercial production in 2019. It says contractors were on-site in early November and a mild winter has allowed it to fast-track parts of the project. Gold Bar contains 20.1 million measured and indicated tonnes averaging 0.87 gram gold per tonne.

In early December the company also announced a $10-million private placement to fund 2018 exploration at its Black Fox property near Timmins, Ontario. It acquired the property in August for US$35 million from Primero Mining. The Black Fox property has historically produced 950,000 oz. gold.  

Shares of Alamos Gold fell 4% to US$6.03. The company released a feasibility study on its Lynn Lake gold project in Manitoba. Lynn Lake contains 26.8 million proven and probable tonnes grading 1.89 grams gold with 1.6 million contained oz. gold. Alamos acquired the project in 2016 and would have to spend US$338 million to build two open-pit mines. The company also bought Richmont Mines in November 2017. Although Richmont sold several assets before completing the transaction, Alamos absorbed the Island Gold mine near Wawa, Ontario. The mine has produced 500,000 oz. gold.