U.S. markets, Oct. 28 – Nov. 1

U.S. markets gained momentum during the trading week as investors assessed corporate earnings. The Dow Jones Industrial Average advanced 45 points to 15,615.55. The broader S&P 500 Index edged up nearly 2 points to 1,761.64. The Nasdaq Composite Index slipped 21 points to 3,922.04. The spot price for gold plunged US$37.1 per oz. to US$1,315.80. 

Barrick Gold was the most actively traded stock, with 121.5 million shares changing hands after the world’s biggest gold producer unveiled a US$3-billion equity offering to reduce its debt. Barrick is offering 163.5 million shares at US$18.35 apiece and another 24.5 million at the same price, for net proceeds of US$3.45 billion if the over-allotment option is fully exercised. 

The debt-laden miner has also halted construction at its Pascua-Lama gold mine in Chile and Argentina, and expects to save up to US$1 billion in spending next year. The suspension affected Silver Wheaton, which has a streaming agreement for 25% of the mine’s silver output, and Royal Gold, which holds a sliding scale net smelter return royalty on the Chilean side of the project. Royal Gold dropped US$5.74 to US$48.06 and Silver Wheaton fell US$2.94 to US$22.01. Barrick lost US$2.86 to US$18.01, despite reporting an adjusted profit of US$580 million, or US58¢ a share, during the third quarter. 

Mesabi Trust, which receives a royalty on the iron ore shipped from its trust lands, including Cliffs Natural Resources’ Peter Mitchell mine in Minnesota, was the biggest value and percentage gainer, up 15.4%, or US$3.11, to US$23.26. The boost likely resulted from Cliffs’ announcement to expand production at the mine in 2014, as it entered pellet-supply contracts with two of its U.S. iron ore customers. The global miner predicts its U.S. iron-ore sales will increase next year to 23 million tons, while maintaining its 2013 U.S. iron-ore sales target at 21 million tons. 

It recently reported a quarterly net income attributable to its shareholders of US$104 million, or US66¢ per diluted share, up from US$85 million, or US59¢ per diluted share, a year ago. Cliffs added 10.4% to end at US$27.34.

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