U.S. stock indexes post thin gains, Nov. 24-28

The drop in oil prices in the wake of the Organization of the Petroleum Exporting Countries’ decision to maintain production did not punish stock market indexes in the U.S. as much as some may have anticipated, with many companies benefitting from cheaper energy such as consumer goods makers and airline and transportation companies. When the markets reopened after the Nov. 27 American Thanksgiving holiday, the Dow Jones Industrial Average finished the week 0.1% higher at 17,828.24, the S&P 500 Index rose 0.2% to 2,067.56 and the Nasdaq Composite Index advanced 1.7% to 4,791.63. Cheaper oil sent the Philadelphia Gold and Silver Index down 7.3% to 68.40.

Shares of BHP Billiton fell US$5.71 to US$51.63. The company announced that it is targeting US$4 billion of annualized productivity gains in its core portfolio by the end of the 2017 financial year, in a US$500-million increase on previous guidance. The miner also said improved capital productivity would trim planned investment from US$14.8 billion to US$14.2 billion in the 2015 financial year, and to US$13 billion in the 2016 financial year, with no change to expected production growth. It is also planning productivity initiatives in its copper division such as low-cost debottlenecking projects to offset grade decline over the medium term.

Platinum Group Metals reported a US$10.5-million net loss, or US2¢ per share for the financial year ended Aug. 31, compared with a US$12.1-million net loss, or US4¢ per share in the previous financial year. At the financial year-end, the company held $108 million in cash. Today that cash balance is US$78 million. The company is focused on building the Project 1 platinum mine near Rustenberg in South Africa and on exploration and engineering work at its newly discovered Waterberg platinum deposit north of Mokopane. The company says first production at the Project 1 mine (also known as the Western Bushveld joint venture) is planned for the fourth quarter of calendar 2015, subject to financing, and that it also expects complete a prefeasibility study on Waterberg in the first or second quarter of calendar 2015. The company’s shares fell 19.5% to US63¢.