U.S. equities ended in the red overall, as investors focused on third-quarter earnings. The Dow Jones Industrial Average fell 0.6% to 18,138.38, while the S&P 500 Index lost nearly 1% to close at 2,132.98. The Nasdaq slumped 1.5% to finish at 5,214.16. The spot gold price retreated 0.6%, or US$7.10 to US$1,250.50 per ounce. The November contract for U.S. crude rose 1% to US$50.35 per barrel.
Seabridge Gold shares rose 3.4% to US$10.61. The company reported receiving permits to develop an exploration adit into the Deep Kerr deposit at its KSM gold-copper project in northwestern British Columbia.
The proposed 2,100-metre long adit would lower the cost of underground drilling at the Deep Kerr deposit, and provide access to mineralized zones that are tested to 1,800 metres deep. All drilling at Deep Kerr has been from surface, resulting in long and costly drill holes.
An Oct. 6 preliminary economic assessment (PEA) incorporated the Deep Kerr and Iron Cap Lower zone into a conceptual project design that recommends underground block-caving mining for the Kerr and Deep Kerr deposits. Compared to the September 2016 prefeasibility study, the PEA improves the project’s economic returns and reduces its environmental footprint.
Alcoa shares plunged 16% to US$26.44, despite a third-quarter profit of US$166 million, or 33¢ per share, compared to last year’s US$44 million, or 6¢ per share. Revenue fell 6% to US$5.2 billion, due to curtailed and closed operations, and lower alumina pricing.
First Majestic Silver dipped 4.6% to US$7.85 per share, despite announcing record silver-equivalent production in the third quarter. Silver equivalent production from its six Mexican mines grew 27% year-over-year to 4.5 million equivalent oz. silver. Output included 3.1 million oz. silver, 14,452 oz. gold, 8 million lb. lead and 1.5 million lb. zinc.
Silver output improved 20%, largely due to improved grades, throughput rates and recoveries. The company saw higher silver grades — particularly at its Santa Elena, La Guitarra and San Martin mines — on the back of improved mine sequencing and dilution control.
First Majestic has expanded exploration, after more operational cash flow.