US stocks rise, Nov. 13-19

U.S. equities gained after the Federal Reserve signalled a possible December rate hike at its last policy meeting, suggesting the U.S. economy is getting stronger. The Dow Jones Industrial Average rose 1.6% to finish at 17,448.07, the S&P 500 Index climbed 1.7% to 2,081.24 and the Nasdaq Composite Index closed relatively flat at 5,073.64. The gold spot price in New York, however, dipped US$3.20 per oz. to US$1,081.80. 

Mexico-focused producer First Majestic Silver added nearly 6% to finish at US$2.98 per share. Quarterly revenues were US$44.7 million, up 10% from the same period last year. Net loss was US$1.8 million, or US1¢ per share, compared to a US9¢-per-share loss in 2014. Adjusted loss came in at US6¢ per share, slightly ahead of analysts’ estimates of negative US8¢ per share. Total production was relatively flat at 3.56 million equivalent oz. silver. Compared to last year cash costs dropped 16% to US$8.77 per oz. silver, and all-in sustaining costs fell 28% to US$14.41. As part of its cost-cutting, First Majestic laid off 180 personnel, and could lay off more by year-end. It narrowed its annual silver-equivalent guidance to 15.7 to 15.9 million oz., compared to 15.3 to 17.1 million oz. It intends to make only low-cost ounces to boost free cash flow from operations. 

Rubicon Minerals shares slid more, dropping 22% to US13¢. In early November the company suspended underground development at its Phoenix gold project in Ontario, after trial stoping revealed a complex F2 gold deposit. After the suspension Rubicon reduced its workforce by 87%, or 310 personnel. On Nov. 12, it posted a third-quarter net loss of $29.4 million, or 7¢ per share, compared to last year’s loss of $25 million, or 7¢ per share.

Cliffs Natural Resources plunged 19% to US$2.45 per share after announcing it would temporarily shut its Northshore Mining operation in Minnesota by Dec. 1 to lower its inventory, as iron ore demand has declined. The closure will put most of the 540 employees at Northshore at risk. This is the second iron ore operation in Minnesota that the company has recently closed. It took the United Taconite operation offline in August. Cliffs expects to keep both operations closed throughout the first quarter of 2016, noting the restart will largely depend on market conditions.