U.S. markets rise during Sept. 6-9 trading week

The Dow Jones Industrial Average gained 833.27 points during the Sept. 6-9 trading session, rising 2.66%, to 32,151.71, while the S&P 500 climbed143.1 points or 3.65% to 4,067.36. 

This week’s top gainer in value was royalty and streaming firm Franco-Nevada, rising US$4.38 to end the week at US$125.97. Franco-Nevada released its second-quarter results in August, reporting record quarterly revenue of US$352.3 million, a 1% increase from the period one year earlier. However, the result was primarily driven by the company’s energy assets, which more than offset a decrease in precious metals revenue. Analysts expect the company to capture potentially record earnings in 2022. However, with crude oil prices well off their highs and it being unclear whether precious metals will pick up the slack, the market could see annual earnings per share peak in the short term. 

Lithium Americas was the second-best value gainer this week, adding US$4.33 to close the week at US$31.72. The company’s shares rebounded sharply in July and carried its momentum through August, gaining 15.7% in the month. The Vancouver based lithium developer is setting itself up as a critical new producer of lithium chemicals required by the electric vehicle boom by advancing its Cauchari-Olaroz mine in Argentina toward its first production. The company owns a 44.8% stake in the mine, with China’s Ganfeng Lithium owning 46.7% and the Argentinian firm Jujuy Energía y Minería Sociedad del Estado (JEMSE) accounting for 8.5%. As of Jul. 28, Lithium Americas had completed 90% of construction at the mine and expects early-stage production by 2023. The company also holds the large Thacker Pass lithium clay project in Nevada. The 2021 approval of the project by the Bureau of Land Management has been challenged in federal court by environmental and Indigenous groups as well as a local rancher, with a decision expected shortly. 

McEwen Mining was also high on the list of top percentage gainers during the week, adding 14.9% to close at US$3.55 per share. The equity has been garnering attention on the back of the recent announcement that its subsidiary, McEwen Copper, has signed a deal with Rio Tinto that gives the global miner an option to become a majority joint venture partner in the Elder Creek project, in Nevada. Rio’s subsidiary Kennecott Exploration would have to invest US$18 million over seven years to earn the option. After that, the two companies would form an unincorporated joint venture where Kennecott would be the most significant partner and project operator. Elder Creek is an early-stage copper-gold porphyry project located about 9 km from SSR Mining’s Marigold mine complex in northern Nevada.