US stocks slip, April 4-8

The Dow Jones Industrial Average fell 1.2% to 17,576.96 and the S&P 500 Index dropped 1.2% to 2,047.60. Gold moved in the opposite direction. The New York spot price rose 1.4% to US$1,238.40 per oz., while the Philadelphia Gold & Silver Index advanced 6.2% to 74.02. West Texas Intermediate crude finished at US$39.58 per barrel.

Shares of Tahoe Resources climbed US$1.32, or 13.2%, to US$11.35. The company completed its business combination with Lake Shore Gold on April 1, and reported 2016 guidance on April 4. The company expects to produce between 370,000 and 430,000 oz. gold this year at total cash costs of between US$675 and US$725 per oz., net of by-product credits, and all-in sustaining costs (AISCs) of US$950 to US$1,000 per oz., net of by-product credits. It also targets growth of 2 to 4 million oz. in gold reserves and resources by 2020. As for silver, Tahoe expects to produce between 18 and 21 million oz. silver in 2016 at cash costs net of by-product credits of US$7.50 to US$8.50 per oz., and at AISCs of US$10 to US$11 per oz., net of by-product credits. The company expects to grow gold production from 350,000 oz. in 2015 to more than 550,000 oz. by 2020.

Endeavour Silver’s shares advanced 12.9% to US$2.80 per share. The company released production results for the first quarter of 2016. Silver production from the company’s three underground silver-gold mines in Mexico (Guanacevi in Durango and Bolanitos and El Cubo in Guanajuato) produced 1.51 million oz. silver, down 17% from the first quarter of 2015. Gold production reached 15,960 oz. in the first quarter of 2016, up 1% from the first quarter of 2015. Endeavour CEO Bradford Cooke said management will focus on profit margins by minimizing AISCs and improving after-tax free cash flow at each mine.

Shares of Pretium Resources rose 10.2% to US$6.05 on results from its underground infill drill program at the Brucejack project’s Valley of the Kings. Reported assays included six intersections grading greater than 1,000 grams gold per tonne. Intercepts were 428.43 grams gold per tonne (uncut) over 14 metres, including 11,650 grams gold over 0.5 metre and 37.87 grams gold (uncut) over 28 metres, including 1,760 grams gold over 0.5 metre.


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