NYSE trading diverges Aug. 21-25 as investors consider rate hike vs economic growth

United States markets gained and fell by the week’s end as Federal Reserve Chairman Jerome Powell said the central bank may still need to raise interest rates to control inflation while a strong economy has evaded recession and some prices have eased.

The Dow Jones Industrial Average fell 153.76 points or 0.4% to 34,346.90 and the S&P 500 gained 36 points or 0.8% over the week to 4,405.71.

South Africa’s Harmony Gold increased the most in percentage terms. It added 15.4% to close at US$4.05 after reporting on Aug. 23 that it grew earnings per share to between US43¢ and US45¢ during the 12 months to June 30 compared with a loss per share of US8¢ in the previous year. Full results are due on Aug. 30.

“We have met the upper end of our production guidance of 1.4 million to 1.5 million oz. at an all-in-sustaining cost of below 900,000 rand per kg (about US$1,354 per oz.),” Jared Coetzer, head of investor relations, said in a release. “Underground recovered grades also exceeded the upper end of the guided 5.5 to 5.6 grams per tonne.”

Inflation on production costs, increased foreign exchange losses on loans in U.S. dollars and deferred taxation coming due offset some of the gains from higher gold prices and grades, Harmony said.

Also in South Africa, DRD Gold was the second-highest gainer by percentage, adding 12% to close at US$10.42. Earnings per share rose 14% to 148.2 South African cents (about US8¢) during the 12 months to June 30 compared with last year, the Johannesburg-based company said Aug. 23. Revenue rose 7% to 5.5 billion rand (about US$296 million).

DRD, which reclaims gold from tailings at past-producing sites, said higher gold prices and better grades overcame lower production because of power shortages from the problem-plagued electrical grid and delays in commissioning a new project to replace another near the end of its life.

Hecla Mining, the largest silver producer in the U.S., declined the most in percentage terms, dropping 5.9% to US$4.31. Fire damage in a shaft required the company to shut the Lucky Friday mine in Idaho, which is expected to impact the mine’s production and cost guidance, Hecla said Aug. 21.

The fire caused ground to fall in an unused part of the number two shaft at the mine. Hecla said it’s working on a plan to resume production and will update 2023 guidance once the plan is developed. The incident occurred about 150 metres from the bottom of the shaft’s active portion.

Hecla also operates mines in Alaska and Quebec, and is developing the Keno Hill project in the Yukon after acquiring Alexco Resource a year ago.