North American Mining Stocks Soar Along With Gold, Silver, Copper
Friday March 04, 2016 11:23
(Kitco News) - Shares of nearly all mining stocks that trade in North America climbed during the first four days of this week as gold, silver, copper and other metals all posted solid gains.
Higher commodity prices, of course, mean increased revenues for companies as they sell their main product. Otherwise, overall, the news flow was light prior to Thursday's stock-market close, although many company executives were making presentations on their operations at a mining conference in Florida.
Late Thursday, Comex April gold futures were at $1,264.90 an ounce, a gain of $42.10, or 3.4%, for the week so far. Comex May silver was up 54.5 cents, or 3.7%, for the first four days of the week at $15.255. Comex May copper futures gained 8.95 cents, or 4.2%, to $2.2100 per pound.
During that same time span, the NYSE Arca Gold Bugs index (HUI) was up 11.8102 points, or 7.3%, to 173.3529. The Market Vectors Gold Miners exchange-traded fund (GDX), which consists of stocks of gold-mining companies, gained $1.13, or 6%, to $19.82per share.
First Quantum Minerals (TSX: FM), which is thought of largely as a copper producer but also mines nickel, gold and platinum group metals, added $1.78, or 37%. The company hasn't announced any fresh news since mid-February, when it reported a profitable fourth quarter despite softer metals prices than a year ago. It was no doubt helped by a rises in the price of all the metals that it produces.
Seabridge Gold (NYSE: SA) gained $2.37, or 27%.
Coeur Mining (NYSE: CDE) raced ahead by 94 cents, or 26%. The company's top executive was one of many in the mining industry making a presentation at the BMO Global Metals & Mining Conference this week. Chief executive officer Mitchell J. Krebs highlighted recent acquisitions, growth and cost
reductions. In its most recent earnings report, the company reported that its adjusted all-in sustaining cost for 2015 was $14.32 for per silver-equivalent ounce, down 22% from 2014.
Among the major gold producers, Harmony Gold Mining Co. Ltd. (NYSE: HMY) added 38 cents, or 12%. Yamana Gold Inc. (NYSE: AUY) gained 32 cents, also 12%. Anglogold Ashanti Ltd. (NYSE: AU) climbed $1.13, or 9%. Iamgold (NYSE: IAG) rose 20 cents, or 8%. Goldcorp (NYSE: GG) climbed 20 cents, also 8%.
On the loss side of the ledger, well, there weren't very many. Pacific Booker Minerals Inc. (TSXV: BKM) gave up 15 cents, or 10%. Franco-Nevada Corp. (TSX: FNV) shed $2.79, or 3%. Agnico-Eagles Minds Ltd. (NYSE: AEM) inched down 20 cents, or 0.6%.
By Allen Sykora of Kitco News; firstname.lastname@example.org