US markets mixed, Feb. 1-5

The Dow Jones Industrial Average climbed 3.89% to finish the week at 31,148.24 and the S&P 500 advanced 0.02% to 3,841.47. Spot gold fell US$32.90 per oz., or 1.78%, to US$1,815.20 per ounce. 

Freeport-McMoRan jumped US$4.82 to US$31.73 per share. Reuters reported on Feb. 5 that Freeport may only have to finance 7.5% of the US$2.8 billion copper smelter it is building in Indonesia with China’s Tsingshan Holding Group, the world’s largest stainless steel producer. In June last year, the Indonesian government requested that Freeport build a copper smelter in Weda Bay in eastern Indonesia as it seeks to build an integrated smelting hub there. Most of the smelter’s financing will be borne by Tsingshan, Indonesia’s deputy head for investment and mining coordination Septian Hario Seto told Reuters. Seto said the negotiations are slated to conclude by the end of March.  

Shares of Sibanye-Stillwater increased by US$1.98 to US$16.85 per share. The company reported that it has received responsible sourcing accreditation from the London Platinum and Palladium Market (LPPM) for its platinum group metals refinery facility in South Africa, about 2 km southeast of Johannesburg. The LPPM certifies Sibanye-Stillwater’s responsible platinum and palladium sourcing and “confirms the high governance standards of our processes and is aligned with our strategic pillar to embed ESG excellence as the way we do business,” CEO Neal Froneman stated in a Feb. 2 news release. 

McEwen Mining fell US6¢ to US$1.14 per share. The company announced an offering of 30 million common shares at a price of US$1.05 per share. The offering to existing and new institutional shareholders announced on Feb. 5 will complete the funding required to bring the Froome deposit into production at its Fox complex in Timmins, the company said. Development of underground access to the deposit is underway and ahead of schedule, and first ore is expected later this quarter. Commercial production at Froome is slated to begin in the fourth quarter of the year. The company is also working on a PEA to expand the mine life at Fox from its current four years to ten years, and boost production from 30,000 oz. to 40,000 oz. a year to 100,000-150,000 oz. annually. Separately, the company announced consolidated production guidance for 2021 of 141,000-160,000 gold equivalent ounces.