US markets post slight gains: Vale, Cleveland Cliffs, Buenaventura, Franco-Nevada, Peabody Energy

The Dow Jones Industrial Average posted a marginal 0.17% gain to 25,106.33, while the S&P 500 Index ended 0.05% higher at 2,707.88. Despite a rising dollar, spot gold held above the US$1,300 per oz. mark, finishing at US$1,314 per oz., down 0.24%, or US$3.10 per oz. from the previous week.

The unfolding tailings dam disaster at Vale’s Feijao iron ore mine in southeastern Brazil kept pressure on the company’s shares, which were the most heavily traded, and finished at US$11.39 — down US$1.18, or 9.4%. The company has identified 160 bodies to date and 155 people are still missing after the dam ruptured on Jan. 25.

Cleveland Cliffs rose US$1.30, or 12.3%, to US$11.83 per share. The company — a major supplier of iron ore pellets to the North American steel industry, with mines and pellet plants in Michigan and Minnesota — reported consolidated revenues of US$2.3 billion in 2018, up from US$1.9 billion in 2017. Net income surged to US$1.1 billion, compared to US$363 million in 2017. For the year, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at US$766 million, in a 67% net increase from 2017’s US$460 million.

Shares of Peruvian precious metals miner Buenaventura rose US55¢ to US$16.25 per share. The company recently resumed operations at its Uchucchacua mine after a 21-day strike, and has restarted operations at its Orcopampa mine after a de-bottlenecking exercise, and improvements to the mine’s ventilation system.

Franco-Nevada’s shares fell US$1.44 to US$75.42. The company announced that it expects gold and gold-equivalent production for 2018 within its previous guidance range, with gold-equivalent ounces expected between 445,000 and 450,000. Oil and gas revenues would be between US$85 million and US$88 million, surpassing the previous guidance range of US$75 million and US$85 million.

Peabody Energy’s shares fell US$6.04, or 16.9%, to US$29.73. The company reported 2018 income from continuing operations, net of income taxes, totalled US$645.7 million, and net income attributable to common stockholders totalled US$544.4 million, with adjusted EBITDA of US$1.38 billion.