US markets edge higher, Aug. 10-14

A mixture of indicators puzzled investors in U.S. equities, as positive economic data suggested the Federal Reserve would raise interest rates in September, while China’s devaluation seemed to lessen the odds that the U.S. central bank would tighten its monetary policy. The Dow Jones Industrial Average rose 0.6% to 17,477.40, and the S&P 500 Index climbed 0.7% to 2,091.54. The Philadelphia Gold and Silver Index advanced 8.8% to 49.71. 

Shares of Gold Fields rose 51¢ to US$2.65 as it agreed to sell its 51% stake in the Woodjam copper-gold molybdenum project in B.C. to its junior partner and 49% owner Consolidated Woodjam Copper Corp. In exchange, Gold Fields would be issued Woodjam Copper shares to take its holding from 1.1% to 19.9%. Gold Fields will keep a 2% net smelter return royalty over all unencumbered land owned by Woodjam Copper. The royalty could be trimmed to 1% by paying Gold Fields $5 million in cash.

SilverCrest Mines advanced 28.3% to $1.02 per share. The company, which in late July agreed to a friendly takeover offer from First Majestic Silver, reported strong second-quarter financial results despite lower precious metal prices. SilverCrest’s earnings reached US$3.9 million, or 3¢ per share, in a 194% increase from the second quarter of 2014, while revenue increased 169% year-on-year to US$20.7 million. All-in sustaining cash costs per equivalent oz. silver sold were US$10.97, down 7% from US$11.73 in the year-earlier quarter. The company has US$36.4 million in cash and equivalents and US$51 million in working capital. SilverCrest also raised this year’s production guidance to between 4.7 and 5.1 million equivalent oz. silver. SilverCrest’s Santa Elena mine is 150 km northeast of Hermosillo in Mexico’s Sonora state. 

Freeport-McMoRan filed a prospectus supplement to offer and sell shares of common stock for gross proceeds of US$1 billion, sending its shares down 32¢ to US$10.03.


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