US markets rise, Aug. 3-7

The Dow Jones Industrial Average rose 3.80% to finish the week at 27,433.48 and the S&P 500 increased 2.45% to 3,351.28. Spot gold jumped US$58.70 per oz., or 2.97%, to US$2,034.80 per ounce.

Shares of Pretium Resources advanced by 30.94% to US$12.40 with  the release of second-quarter results from its Brucejack underground gold mine, located 65 km north of Stewart in British Columbia. The mine produced 90,419 oz. of gold in the second quarter, which was close to the previous year’s figure of 90,761 ounces, despite the coronavirus pandemic. The company reported net earnings of US$32.5 million (adjusted US$49.2 million) on revenues of US$166 million. Its all-in sustaining costs (AISCs) were US$911 per oz., down from US$940 per oz. in the same quarter last year. Pretium reiterated its 2020 production guidance of 325,000-365,000 ounces.

Strong second-quarter results sent Hecla Mining’s shares up by 10.87% to US$6.12. Despite the coronavirus pandemic, the company reported its second-highest quarterly silver production since 2016, which when combined with higher metal prices, resulted in 24% more revenue than the same quarter a year ago. The company also generated about US$27 million of free cash flow during the quarter. The company reported quarterly production of 3.4 million oz. silver and 59,982 oz. gold and posted gross profit of US$34.1 million, a year-on-year increase of US$54.3 million. Adjusted net income applicable to common shareholders came in at US$7.3 million, or US$0.01 per share. The company ended the quarter with US$76 million in cash and equivalents. During the quarter it repaid US$160 million of its revolving line of credit, leaving US$50 million, which it expects to pay off before the end of the year.

Shares of Barrick Gold fell 0.39% to US$38.56. The company updated investors on its drill program at the Donlin gold project in Alaska, which it co-owns in a joint-venture with Novagold Resources. After a pause in its drill program in April due to Covid-19, it resumed the program in late May. The company has planned 80 holes, totalling 22,000 metres, the largest drill program at Donlin in 20 years. Four rigs are currently turning and the focus will be the ACMA and Lewis deposit areas. Highlights from the drilling so far have included 41.91 metres grading 11.61 grams gold per tonne starting from 30.35 metres downhole and 45.91 metres of 5.03 grams gold, starting at 35.39 metres. The project, one of the world’s largest undeveloped gold deposits, is 250 km northeast of Bethel.