US markets down, Sept. 27-Oct. 1

The Dow Jones Industrial Average dropped 471.54 points or 1.36% to finish the September 27 to October 1 trading week at 34,326.46 and the S&P 500 fell 98.44 points or 2.21% to 4,357.04. Spot gold rose US$10.80 per oz. or 0.62% to US$1,761 per ounce.

Arch Resources topped the list of value gains, jumping US$19.49 to US$97.54 per share on no corporate news. The company announced on September 9 that production had begun at its new Leer South longwall coal mine in West Virginia. When fully ramped, the mine is projected to produce up to four million tons per year of premium-quality, high-volume A metallurgical coal for the global steel market. The company said it started work on the new mine two and a half years ago and invested about US$400 million on the buildout. Full production is slated for the start of 2022.

Shares of Peabody Energy climbed US$2.68 to US$15.65. The company announced the ratification of a new collective bargaining agreement by the union representing its hourly workers at its Shoal Creek mine in Alabama, which produces hard coking coal.

Freeport McMoRan gained US60¢ to US$32.84 per share. The company published its climate report, which it says details the work it is doing across its business to reduce greenhouse gas emissions (GHG). This year the company established a new 30% GHG emissions intensity reduction target for its Indonesian operations by 2030. “As both a major consumer of energy, and as one of the world’s largest producers of the copper essential to enable the global energy transition, Freeport aspires to participate in, and positively contribute to, a 2050 net zero economy,” Richard C. Adkerson, chairman and CEO said in a press release on September 30. “Our path to net zero carbon emissions will require industry-wide new technological solutions and innovation. We embrace these challenges and are focused on achieving meaningful progress through our internal efforts and through collaboration with industry partners. We are in the process of integrating our climate initiatives into our long-term business plans as we work to responsibly produce copper for the benefit of all stakeholders.”

Shares of Kirkland Lake Gold fell US$1.60 to US$40.97. Under a proposed merger with Agnico Eagle Mines announced on September 28, Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each Kirkland Lake Gold common share held. The consideration to Kirkland Lake Gold represents about a 1% premium to the ten-day volume weighted average prices on the Toronto Stock Exchange, as at the close of trading on September 24, and implies a combined market capitalization of roughly $24 billion. Upon closing, Agnico Eagle and Kirkland shareholders will own about 54% and 46% of the combined company, respectively.