U.S. stocks climbed on the back of strong housing figures for September; better-than-expected earnings from major companies like eBay, Microsoft and Amazon; and signs that the European Central Bank would consider more stimulus measures to boost the continent’s sluggish economy. The Dow Jones Industrial Average rose 2% to 17,489.16, while the broader S&P 500 Index climbed 1.4% to 2,052.51. The tech-heavy Nasdaq Composite Index added 1% to finish at 4,920.05. The gold spot price fell 1% to US$1,165.90 per oz.
Seabridge Gold topped the percentage and value winner charts, gaining 9.5%, or US69¢ per share, to finish at US$7.93, on no news. Seabridge lined up a $14.6-million non-brokered private placement with two of its largest shareholders to fund its work at its flagship KSM gold project in B.C. Under the placement, expected to close by Oct. 30, Seabridge will issue 1.8 million shares priced at $8.10. FCMI Parent Co. — an entity controlled by investor Albert Friedberg and his family — will buy 1.5 million shares.
Freeport-McMoRan saw heavy trading, after reporting a huge third-quarter loss on the back of a US$3.7-billion writedown related to its oil and gas operations. The world’s largest listed copper miner posted a net loss of US$3.8 billion, or US$3.58 per share, compared to last year’s profit of US$552 million, or US53¢ per share. Adjusted loss, excluding one-time items, came in at US$156 million, or US15¢ per share. The miner — under pressure by activist investor Carl Icahn to rein in costs — announced cuts to its copper and molybdenum production, including a possible shutdown of its Sierrita mine in Arizona. Freeport fell US98¢ to US$12.02 per share, on 138 million shares traded.
Hecla Mining released preliminary third-quarter production results from its three operations. Consolidated output totalled 2.59 million oz. silver, 43,635 oz. gold, 17,435 tons zinc and 9,123 tons lead. Silver and lead production dropped 10% and 14%, compared to the same period last year, while gold and zinc output grew by 2.7% and 7%. The year-over-year drop in silver ounces largely came from lower tonnage and grade at its Lucky Friday mine in northern Idaho. Hecla temporarily closed a higher-grade stope at the mine, after a failed underground booster lowered the ventilation capacity. The company has upgraded the ventilation system, and operations resumed on Oct. 1. Hecla lost US31¢ to finish at US$2.32 per share.
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