US markets end in positive territory, Oct. 15-19

The Dow Jones Industrial Average rose 0.41% to 25,444.34, while the S&P 500 Index rose 0.02% to 2,767.78. Spot gold rose 0.74% to US$1,226.50 per oz. gold.

Coal producers in the U.S. continued to post gains during the trading week. Peabody Energy’s shares rose US52¢ to US$35.56. The Fortune 500 coal giant announced a quarterly dividend of 13¢ per common share payable on Oct. 31. Peabody noted that, given its share repurchases, the dividend reflected an increase of nearly 4% over the previous quarter’s dividend per share. Shares of other coal companies also rose, on no corporate news, including Arch Coal, up US$1.57 to US$93.22, and Consol Energy, up US$1.04 to US$39.36.

Shares of Nexa Resources fell US50¢ to US$11.71 per share. The zinc producer announced that its board has approved construction of its 70%-owned Aripuana project — an underground polymetallic mine and processing facility in Brazil’s Mato Grosso state. The mine will be built for a US$392-million investment. Once in production, Aripuana could produce an average of 120,000 tonnes zinc-equivalent per year over a 13-year mine life, based on current reserves. The company estimates the mine will operate by the start of 2021. Airpuana is a volcanogenic massive sulphide deposit containing proven and probable reserves of 26.2 million tonnes grading 3.7% zinc, 1.4% lead, 0.2% copper, 0.3 gram gold per tonne and 34 grams per tonne silver. Nexa says the mine life could extend to six years at higher grades, based on the deposit’s current inferred resource. Aripuana is forecast to recirculate close to 100% of its process water. It will also use dry-stack tailings, and 50% of the tailings will return to the mine as material for backfill.

The company got its preliminary environmental licence in April 2018 and expects an installation licence — which it needs for construction — by year-end. Management says an operation permit should arrive by the end of 2020. Nexa owns and operates five underground mines — three in Peru’s Central Andes and two in Brazil, in Minas Gerais state.