The S&P 500 Index and the Dow Jones Industrial Average posted their best performances since November. The S&P 500 rose 2.8% to 1,917.78, and the Dow advanced 2.6% to 16,391.99. The Nasdaq climbed 3.8% to 4,504.43, in its largest weekly gain since July. Most gains came before the crude oil price dipped below US$30 per barrel. The spot gold price fell US$11.90 per oz. to US$1,226.
Freeport-McMoRan, the most traded stock, reported it would sell 13% of its Morenci unincorporated joint venture to Sumitomo Metal Mining for US$1 billion in cash to help lower its debt. Freeport owns 85% of Morenci and Sumitomo Metal Mining Arizona (SMMAz) owns the rest. The transaction should close in mid-2016. Once completed, the joint venture will be held 72% by Freeport, 15% by SMMAz and 13% by an affiliate that Sumitomo fully owns. Freeport expects to use the proceeds to repay its debt, and anticipates recording a US$550-million gain on the transaction.
As of year-end 2015, Freeport’s 85% share of Morenci reserves totalled 12 billion lb. copper. The company’s share of 2015 copper production came in at 900 million lb., with US$2.2 billion in revenues. Its share of production and delivery costs totalled US$1.5 billion. Freeport added US$1.39 to finish at US$6.92 per share, as 324 million shares changed hands.
Base metal miners Hudbay Minerals and Teck Resources topped the percentage gainers’ list, on no corporate news. Hudbay surged 29% to US$2.52 per share. Teck, which released its 2015 earnings on Feb. 11, rose 27% to US$5.95 per share. It is up 54% since the end of 2015.
Barrick Gold saw heavy trading after reporting its 2015 financials on Feb. 17. Full-year adjusted earnings were US$344 million, or US30¢ per share, which is less than half the adjusted amount earned a year ago. However, the miner generated US$471 million in free cash flow, marking the first time in four years that it made positive cash flow. Barrick also met its production, cost and debt reduction targets for 2015. It drove its debt down US$3.1 billion to US$10 billion, mainly through asset sales. It could lower its debt another US$2 billion this year. Barrick announced a quarterly dividend of US2¢ per share payable to shareholders in March, and appointed its president Kelvin Dushnisky as a director. TNM
Be the first to comment on "US stocks soar, Feb. 15-19"