US markets slip, Sept. 14-18

The Dow Jones Industrial Average fell 0.03% to finish the Sept. 14-18 trading week at 27,657.42 and the S&P 500 Index dropped by 0.84% to 3,319.47. Spot gold climbed US$8.80 per oz., or 0.45%, to US$1,948.90 per ounce from the previous week.

Vale was the most heavily traded stock of the week. The company informed its creditors on Sept. 14 that it will repay the outstanding balance of US$5 billion from its revolving credit lines maturing in June 2022 (US$2 billion) and in December 2024 (US$3 billion), which were disbursed in March 2020. Vale’s shares fell US¢16 to US$11.51.

Shares of Kinross Gold jumped US$1.20 to US$10 per share. The company unveiled its three-year production guidance and declared a dividend of US3¢ per common share payable on Oct. 22 2020. The company expects to produce 2.4 million gold-equivalent ounces in 2021, 2.7 million in 2022 and 2.9 million in 2023 – representing an increase of 20% over the three-year period. The company said the production growth was based on additional ounces it expects from Kupol, a life of mine extension at Chirano, enhancements to its mine plan for Fort Knox, continued outperformance at Paracatu and higher production from Bald Mountain. CEO J. Paul Rollinson said the increase “is indicative of the strength of our portfolio and our ability to optimize mine plans and find value-enhancing opportunities,” and noted the company is “also studying further organic development options” given its “attractive pipeline of projects and promising exploration results.”

Eldorado Gold’s shares rose US$1.17 to US$11.81 on no news. On Sept. 8 the company reported that it had completed the redemption of $58.6 million of its senior secured notes.

Shares of Yamana Gold rose US10¢ to US$6.12. Yamana was included in this year’s TSX30 ranking of top performing stocks on the Toronto Stock Exchange. Founded in 2019, the TSX30 ranks stocks based on dividend-adjusted share price appreciation over a three-year period. Yamana’s shares posted a 142% gain over the period. The company also noted in a Sept. 15 press release that it has reduced net debt by US$991 million in the past four quarters and over the past year has raised its dividend four times for a cumulative increase of 250%.

Barrick Gold fell US86¢ to US$28.89 per share on news that Chile’s environmental court ordered the definitive closure of the company’s giant Pascua-Lama gold-silver project. The project has been on hold since 2013 over environmental concerns. Barrick said it will not appeal the decision.


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