U.S. stocks drop, April 27-May 1

U.S. equities fell  after being tripped up by  soft economic data. The Dow Jones Industrial Average lost 56.08 points to 18,024.06, and the S&P 500 Index slipped 9.4 points to 2,108.29. The Nasdaq retreated 86.69 points to 5,005.39. The gold price fell US$2.50 per oz. to US$1,177.90.

Banro shares soared 19% to US25¢, after the company closed a US$90-million financing to bring its Namoya gold mine in the Democratic Republic of the Congo to full production. Investment funds managed by Gramercy Funds Management will give Banro US$20 million for a gold forward sale on the nearby Twangiza gold mine — totalling 22,248 oz. over three years — and US$50 million for a gold stream on the Namoya mine, where it will buy 8.3% of the life-of-mine production for US$150 per oz. The proceeds will reduce the company’s accounts payable, help repay the notes issued under a August 2014 liquidity backstop facility and pay down part of its DRC bank debt, among other activities. The Namoya mine sits 200 km south of the Twangiza mine, which began commercial production in September 2012.

Tahoe Resources climbed 18% to US$14.02 per share. Tahoe reported net earnings of US$31.9 million, or US22¢ per share, compared to US$24.8 million, or US17¢ per share, in the first quarter, which saw commercial production for its Escobal silver mine in Guatemala. Quarterly production rose 10% to 4.6 million oz. silver, while all-in sustaining costs dropped 4.5% to US$9.78 per oz., compared to a year ago. Revenue slipped 5% to US$85.3 million, partly from lower average realized silver prices. Cash and equivalents were US$86 million. The financial data excluded results from the newly acquired La Arena gold mine in Peru.

Lake Shore Gold rose 13% to US$1 per share, after releasing drill results from the 144 exploration area, followed by its first-quarter financials. At 144, southwest of its Timmins West mine’s Thunder Creek deposit, it published 22 new drill holes and five wedge holes totalling 29,000 metres. It reported record quarterly production of 53,000 oz. gold at improved all-in sustaining costs of US$750 per oz. Earnings were $12.1 million, up 163% from the same period last year.