U.S. equities remain in positive territory, June 2-6

U.S. equities posted their third straight weekly gain, driven by strong payroll data and optimism about economic growth. The economy added 217,000 jobs in May while the unemployment rate held steady at 6.3%. The Dow Jones Industrial Average jumped 207.11 points, or 1.24% to 16,924.28, while the S&P 500 Index climbed 25.87 points, or 1.35%, to finish at 1,949.44. The Philadelphia Gold & Silver Index inched 1.64 points, or 1.93% higher, to 86.70. The gold price finished the trading week at US$1,252.30 per oz., a dollar higher than when the week began.

Rio Tinto topped the list of value gainers, jumping US$1.67 to US$53.47. The company announced on June 2 that it had sold its 50.1% interest in the Clermont joint venture to GS Coal Pty Ltd. — a company owned by Glencore and Sumitomo — for US$1 billion. Glencore has taken over mine management, which produces thermal coal in central Queensland.

Shares of Lake Shore Gold climbed 4% to US75¢ per share on news that the company made a $10-million prepayment without penalty on its standby line of credit with Sprott Resource Lending Corp., trimming the outstanding principal of the standby line of credit to $20 million from $30 million. Lake Shore Gold said that strong operating results and its increasing cash position helped make the prepayment. Lake Shore’s cash and bullion position sits at $55 million.

Goldman Sachs’ Consol Energy upgrade lifted the coal miner’s stock US49¢ to US$47.45 per share. The same investment bank cut its price targets on Peabody Energy and Alpha Natural Resources, sending those names down US26¢ to US$16.34 per share and US11¢ to US$3.39 per share.

Quest Rare Minerals tumbled 12.1% to US33¢ per share on news that the company should raise more money to help with its feasibility study on the Strange Lake rare earth project in northeastern Quebec, and for working capital. The junior announced on June 4 that it had filed a preliminary short-form prospectus for a new issue of units for proceeds of up to $5 million.

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