US markets up, Nov. 23-Nov. 27

The Dow Jones Industrial Average rose 2.21% to finish the week at 29,910.37 and the S&P 500 climbed 2.27% to 3,638.35. Spot gold dropped US$67.30 per oz., or 3.62%, to US$1,787.70 per oz. 

Vale jumped US$2.05 to US$14.73 per share. The company announced that it had received approval from environmental authorities in the northern state of Para, Brazil, to resume expansion activities at its Serra Leste iron ore mine, 50 km from Curionópolis. The expansion includes the refurbishment of a mill that is scheduled to increase capacity to 10 million tonnes per year by early 2023. The development of both the mine and mill was halted in January 2019 after the company reached the limit of the area licensed for extracting iron ore. Serra Leste, which has a production capacity of six million tonnes of mineralized material per year, is expected to produce between four and five million tonnes per year in 2021 and reach six million tonnes in 2022.   

Shares of Teck Resources shares rose by US94¢ to US$16.00 per share. The company is increasing its steelmaking coal sales to China in the fourth quarter in response to increased demand. Teck said sales have been at higher pricing levels compared to markets outside China. Teck, the world’s second-largest seaborne coking coal miner, is seeing stronger-than-expected met coal demand in China, after authorities reportedly warned buyers to avoid Australian coal. Contract sales to Chinese customers, Teck said, are priced on the basis of Chinese price assessments of cost and freight (CFR). The most recent three cargos, it said, were sold at prices of between US$160 per tonne and US$165 per tonne CFR China. The company said that it is now targeting sales to China of approximately 7.5 million tonnes in 2021.  

Kirkland Lake Gold fell US98¢ to US$40.22 per share. The company announced that it has finalised an option agreement with Wallbridge Mining on its Detour East property, about 11 km east of Kirkland Lake Gold’s Detour Lake gold mine. The companies had previously signed a non-binding term sheet for a joint venture (JV) on the property. Under the option agreement, Kirkland Lake may acquire a 50% interest in the Detour East property by funding phase 1 expenditures of C$7.5 million over five years, with a minimum commitment of C$2 million in the first two years. Once the option is completed, the two companies will then form a JV on Detour East, with Kirkland Lake acting as the operator. Kirkland Lake will have the right to acquire an additional 25% interest in the joint venture by incurring a further C$27.5 million on the project within five years.