US markets fall, Feb. 17-21: Agnico, AngloGold Ashanti, Barrick, Coeur Mining

With the coronavirus epidemic and trade tensions clouding the economic outlook, the Dow Jones Industrial Average fell 1.38% to 28,992.41 and the S&P 500 dropped 1.26% to 3,337.75. Safe haven assets like gold continued to attract investors, and the price of gold climbed to a seven-year high, ending the week at US$1,643.00 per oz., a US$59.40 per oz. increase for a weekly gain of 3.75%.

Shares of Agnico Eagle Mines advanced US$2.08 to US$51.95. The company reported net income of US$473.2 million, or US$2.00 per share for 2019. In 2018, the company posted a net loss of US$326.7 million, or US$1.40 per share. Payable gold production for 2019 reached 1.78 million oz., and AISCs totalled US$938 per oz. The company forecasts annual gold production will increase to 1.88 million oz. in 2020, at AISCs of US$975-$1,025 per ounce.

AngloGold Ashanti’s shares jumped US$2.67 to US$22.13. AngloGold announced that it nearly doubled its free cash flow in 2019 to US$127 million. The company reported production of 3.28 million oz. gold at AISCs of US$992 per ounce. Headline earnings reached US$0.91 per share, up 72% year-on-year, while free cash flow before capital expenditure on growth projects rose 106% to US$448 million. The company expects 2020 production of between 3.05 million- 3.30 million oz. at AISCs of US$1,040-$1,100 per ounce.

Barrick Gold’s shares rose US$1.72 to US$21.44 apiece. The company produced 5.47 million oz. gold and 432 million lb. copper in 2019. Barrick posted net earnings per share of US$2.26 for the year, and noted that its adjusted net earnings per share were up 46% year-on-year, while debt net of cash was halved from 2018 to US$2.2 billion.

Coeur Mining fell US$0.46 to US$5.52 per share. The company produced 359,418 oz. gold, 11.7 million oz. silver, 17.1 million lb. zinc and 16.6 million lb. lead in 2019. Full-year revenue reached US$711.5 million, a 14% year-on-year increase, and cash flow from operating activities came in at US$91.9 million, up from 20.1 million in 2018. Including non-cash write-downs totaling US$320 million, the company reported a net loss from continuing operations of US$346.9 million, or US$1.59 per share. The company has temporarily suspended its Silvertip mine in B.C. due to “further deterioration in zinc and lead market conditions as well as processing facility-related challenges.”