US markets slide, Feb. 1-5

Persisting fears of a global economic slowdown — along with mixed economic data in the U.S., and uncertainty about whether the Federal Reserve will raise interest rates this year — sent the Dow Jones Industrial Average down 1.6% to 16,204.83, and the S&P 500 Index down 3.1% to 1,880.05. Total non-farm payroll employment rose 151,000 in January, below forecasts of 190,000, while the unemployment rate was unchanged at 4.9%, the lowest since February 2008. In December, consumer spending was flat and factory orders fell 2.9%, while in January, the Institute for Supply Management’s Manufacturing Index came in at 48.2. Spot gold rose 4.3% to finish at US$1,173.50 per oz., while the Philadelphia Gold & Silver Index rose 20.3% to 55.30. Copper prices rose 1.4% to US$2.09 per lb., nickel dropped 5.7% to US$3.68 per lb. and West Texas Intermediate crude prices dipped below US$30 per barrel, before finishing at US$31.01 per barrel.

Sibanye Gold advanced US$2.51 to US$11.37 per share on strong quarterly results and a 9% depreciation in the average rand-to-dollar exchange rate. In the quarter ended Dec. 31, Sibanye produced 411,500 oz. gold at total cash costs of US$720 per oz., and all-in sustaining costs (AISCs) of US$907 per oz. The company produced 1.54 million oz. gold in 2015, and says it will produce 1.61 million oz. gold in 2016. Given the exchange rates, Sibanye expects total cash costs this year of US$735 per oz. and AISCs of US$880 per oz.

Goldcorp gained US$2.39 to US$13.73. The company declared its second monthly dividend payment for 2016 of 2¢ per share, and took a stake in Gold Standard Ventures and its Railroad land package in Nevada. Goldcorp will acquire 16.1 million common shares for $1 per share in exchange for a 9.9% stake in the junior, which has amassed the second-largest land package on the Carlin Trend, after Newmont Mining.

Rio Tinto’s shares advanced US$1.56 to US$26.21 on no company news. According to MarketWatch, the diversified miner gave up its membership on the London Metal Exchange (LME). Rio Tinto resigned as a category-five member of the LME, and did not give a reason for its decision.