The U.S. market fell during the week amid lower oil prices. The S&P 500 Index slipped 13.39 points to 2,044.81, while the Dow Jones Industrial Average fell 95.62 points to 17,737.37. The Nasdaq Composite closed down 22.74 points at 4,704.07. The spot price for gold bucked the downward trend, jumping US$33.60 per oz. to US$1,223.40.
Avino Silver & Gold Mines rose 18% to US$1.49, before it released production results from its Avino property near Durango, Mexico. On Jan. 12, the company, which has two mines on the property, reported full-year and fourth-quarter silver-equivalent production of 1.3 million oz. and 436,235 oz., up 49% and 74% from the same periods in 2013.
Alcoa saw heavy trading before publishing its fourth-quarter earnings after market close on Jan. 12. Before the release, analysts at Nomura Securities upgraded the aluminum supplier to “buy” from “neutral,” and raised their price target to US$23 from US$15. The major added US23¢ to close at US$16.11, as 93.2 million shares changed hands.
Alcoa saw its share price increase 48% over 2014 to close Dec. 31 at US$15.79. Cowen and Co. analyst Anthony Rizzuto wrote in a Jan. 9 note that “we expect upstream to continue to surprise as a convergence of tailwinds help fourth-quarter results … a positive view on market supply-demand fundamentals could provide continued support for aluminum shares, which have outperformed on a relative basis.” Rizzuto has a US$16 target and a “market perform” rating on the stock.
Compass Minerals climbed US$4.81 to US$91.74. The firm posted strong salt sales, despite below-average snowfall. The company sold 4.3 million tons of salt products, above its quarterly guidance of 4 million tons. Highway deicing sales amounted to 3.5 million tons at the end of 2014.
BMO analyst Joel Jackson said the salt volume guidance implies fourth-quarter earnings per share of US$2.25. Jackson has a US$88 price target and a “market perform” rating.
Goldcorp shareholders on record will receive US5¢ a share on Jan. 23. The company has been paying a monthly dividend since 2003, despite slumping gold prices. Goldcorp shares jumped US$1.93 to US$20.76, on 56.6 million traded.
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