U.S. equity markets end winning streak

The Dow Jones Industrial Average and the S&P 500 ended a five-week winning streak despite glimmers of hope that the U.S. Federal Reserve may provide more stimulus and news that the European Central Bank is debating whether to set targets in a new bond-buying program that would help restrain borrowing costs. The Dow fell 0.88% or 117.23 points to finish at 13,157.97, while the benchmark S&P 500 slipped 0.50% or 7.03 points to 1,411.13. The Philadelphia Gold and Silver rose 5.31% or 8.49 points to 168.50.

A positive decision from the United States Bureau of Land Management authorizing Allied Nevada’s amended plan of operations for a heap leach expansion at its wholly owned Hycroft mine in Nevada sent the company’s shares up US$3.25 to US$31.86 apiece. The approval allows the company to expand mining areas and build and operate large north and south leach pads that will more than support the current life-of-mine heap leach reserve, the company says.

Meanwhile in Africa Randgold Resources was up US$3.21 to US$100.71. On Aug. 23 the company welcomed the appointment of a new interim government in Mali, which it said “represents a further step towards the full normalization of the country following the coup attempt earlier this year.” Randgold operates the Loulo and Gounkoto gold mines in the country as well as the Morila joint-venture project.

Keegan Resources posted the fourth-largest percentage gain of the week, climbing 24.6% to US$3.64 per share, on the back of a plan to cuts costs at its Esaase gold project in Ghana. Keegan outlined in its recent MD&A that the project’s economics could be improved by increasing ore grade through selectively mining the deposit instead of bulk mining it; and by more effective processing by utilizing flotation rather than whole ore leaching. In addition, a reduction in plant capacity to 4 million tonnes per year from 7.5-9.0 million tonnes per year would cut capital costs to about US$260 million from initial estimates of about US$506 million in a 2011 prefeasibility study.   

Kinross Gold traded 72¢ higher to US$9.03. The company has arranged a new US$1 billion term loan that will mature in August 2015 and has no mandatory amortization payments. The gold producer also has amended its unsecured revolving credit facility with changes including an increase of available credit to US$1.5 billion from US$1.2 billion and an extension of the term to August 2017 from March 2015.