U.S. indexes down third week in a row, March 9-13

U.S. stocks posted losses for the third straight week, with the Dow Jones Industrial Average finishing 0.6% lower at 17,749.31 and the S&P 500 Index closing at 2,053.40, a 0.9% drop. Disappointing economic data from China, a stronger U.S. dollar and expectations that the Federal Reserve would hike interest rates affected base and precious metal prices. The gold price ended the week at US$1,155.00 per oz., and the Philadelphia Gold & Silver Index fell 2.99% to 65.68. The silver price decreased 2% to US$15.56 per oz., platinum was down 4% to US$1,117 per oz. and palladium slid 3.2% to US$794 per oz., while nickel dropped 1.7% to US$6.39 per lb. and lead fell 2.3% to US81¢ per lb.   

Polymet Mining climbed 19.8%, or US22¢ to US$1.33 per share — the biggest percentage jump of the week — on no news. In February, Polymet entered into a US$30-million loan facility with Glencore, which the company says should cover its costs through 2015 as it wraps up the environmental impact statement and permitting required to build its NorthMet project in northeastern Minnesota. Polymet controls 100% of the copper-nickel-precious metals project through a long-term lease, and also owns 100% of the Erie plant, a nearby processing facility.  

Shares of Silver Wheaton were up US6¢ to US$18.85, on no news. Earlier this month, the company acquired another gold stream from Vale’s Salobo mine in Brazil. Under the deal, Silver Wheaton acquires 25% of the life-of-mine gold production from Salobo, in addition to the 25% of Salobo gold production it acquired in 2013. Silver Wheaton will pay Vale US$900 million in cash for the increased gold stream, and will make ongoing payments of the lesser of US$400 and the prevailing market price for each ounce of gold delivered under the agreement.

With new estimates from Wood Mackenzie that nearly 17% of U.S. coal production is uneconomic at current market pricing, it’s no wonder that coal producers are seeing their share prices tank. Shares of Walter Energy, Arch Coal, Cloud Peak Energy and Alpha Natural Resources were down 61.7%, 20%, 19.3% and 18.2%, on no news. Walter Energy has six months to regain compliance.