US markets mixed, May 28-June 1

The Dow Jones Industrial Average lost 0.48% to finish at 24,635.21 and the S&P 500 Index rose 0.49% to 2,734.62 during the holiday-shortened trading week (markets were closed for the Memorial Day holiday). The Philadelphia Gold and Silver Index declined 0.53% to 83.04 and gold finished down 0.62% at US$1,293.10 per oz. gold.

Shares of Consol Energy, Peabody Energy and Arch Coal got a boost after news leaked that U.S. President Donald Trump plans to provide government assistance to bail out struggling coal and nuclear power plants. The administration says the plants are necessary to protect national security. Under the proposal, the U.S. Energy Department would exercise emergency authority under federal laws to order operators to buy electricity or electric-generation capacity from coal and nuclear facilities. Shares of Consol Energy surged US$4.25 to US$45.70; Peabody Energy, US$3.89 to US$45.35; Arch Coal, US$3.20 to US$83.81; and Cloud Peak Energy, US61¢ to US$3.77.

Newmont Mining’s shares finished US80¢ lower at US$38.64 after Newmont announced a strategic partnership with Maverix Metals, a royalty and streaming company. Newmont will sell its royalty portfolio to Maverix in exchange for US$17 million in cash; 60 million Maverix shares, representing a 28% ownership interest; and warrants for another 10 million shares. Newmont’s royalty portfolio includes 54 precious metals and industrial minerals royalties, including royalties at TMAC Resources’ Hope Bay mine in Canada and Premier Gold’s McCoy Cove project in Nevada. Under a shareholder agreement, Newmont is entitled to a seat on Maverix’s board and pre-emptive rights to participate in future financings to keep its ownership stake.

McEwen Mining released a PEA on extending production from its El Gallo gold-silver  mining complex in Mexico. The proposed redevelopment plan, called project “Fenix,” involves a two-staged development process. Phase one includes reprocessing material on the heap-leach pad at its El Gallo mine, and phase two processes open-pit gold and silver ore from multiple deposits. The plan would involve in-pit tailings disposal. McEwen Mining’s shares closed at US$2.19, down 3.1%.