Major U.S. indexes tumbled in August after a decent jobs report suggested the Federal Reserve would hike interest rates as soon as next month. The S&P 500 Index fell 1.3% to 2,077.57, while the Dow Jones Industrial Average lost 1.8% to 17,373.38. The Nasdaq retreated 1.7% to 5,043.54. U.S. employers added 215,000 jobs in July — slightly below the expected 225,000 increase. The unemployment rate stayed at 5.3%. The spot gold price was flat at US$1,093.80 per oz.
Oil producer U.S. Energy climbed 31% to 55¢ per share before reporting bleak second-quarter results on Aug. 10. Net loss after taxes was US$6.3 million, or negative US22¢ per share. This included a US$3.2-million property impairment related to the company’s oil and gas assets, after lower oil prices. In the same period last year, U.S. Energy reported net earnings after taxes of US$56,000. Taking out one-time items, the adjusted net loss was US$2.7 million, or negative US10¢ per share, down from a US$441,000 adjusted profit. Production fell 30% year-over-year to 81,618 barrels of oil equivalent, or an average 897 barrels per day.
U.S. Energy also owns the Mount Emmons molybdenum project in Colorado.
Almaden Minerals soared 24% to US77¢ per share after its spin-out transaction on July 31, where it transferred all of its early stage exploration projects, royalty interests and other assets into Almadex Minerals. For each share held, Almaden shareholders received one Almaden share and 0.6 of an Almadex share. The Almaden shares traded on Aug. 10. Almaden will develop its wholly owned Ixtaca gold-silver deposit in Mexico.
Ur-Energy shares rose 21% to US75¢ on the back of strong quarterly results from its Lost Creek in-situ recovery uranium facility in Wyoming. The three highlights during the three months ended June included Ur-Energy’s first profitable quarter, increasing output while lowering cost per lb. sold and producing its millionth pound of uranium oxide (U3O8) from Lost Creek. The mine cranked out 207,268 lb. U3O8 at cash costs of US$16.15 per lb. Revenue was US$18.2 million from total sales of 404,000 lb. U3O8 at an average price of US$45.08 per lb. Earnings were US$1 million, or US1¢ per share.
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