U.S. markets, Sept. 16-20

The major U.S. indexes rose for the third week in a row — lifted by the U.S. Federal Reserve’s surprise decision on Sept. 18 to delay tapering its massive stimulus program. The Dow Jones Industrial Average advanced 0.50% to 15,451.09 points and the S&P 500 Index climbed 1.30% to 1,709.91. The Philadelphia Gold & Silver Index was relatively flat, rising from 95.68 to 95.75 points.

Barrick Gold was the week’s second most actively traded stock, rising US89¢ to US$18.61. An article in The Wall Street Journal on Sept. 16 noted that the company is under pressure from some investors to shake up its board and force founder Peter Munk to step down. The newspaper reported that there are large investors who want the miner to bring in more independent directors: “In a sign that investors are running out of patience, a group of around ten large Europe-based shareholders in Barrick are preparing to send a letter to the board demanding changes, according to several people familiar with the letter.”

McEwen Mining advanced US36¢ per share, or 15.7%, to US$2.65 per share. On Sept. 20 the company announced that it has been included in the NYSE Arca Gold Miners Index, which is tracked by the Market Vectors Gold Miners ETF, effective Sept. 23. It also reported earlier in the week that senior-vice-president Ian Ball had been promoted to president.

General Moly climbed 16% to US$1.88 per share on no news. The company reported on Sept. 9 that a new cost-reduction program would preserve liquidity while pursuing financing options for its Mt. Hope molybdenum project. The cost-cutting includes a 25% reduction in base-cash compensation for the CEO and board of directors, with other senior employees taking 10–20% salary cuts. Management is also reducing expenses such as engineering, administration and procurement. Engineering at Mt. Hope has been advanced to six months ahead of construction, the company says, and can be “hibernated and resumed when finance is secured, without jeopardizing a rapid start of construction.” Mt. Hope is fully permitted and ready for construction.

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