US equity indexes post marginal gains, May 4-8

The U.S. Bureau of Labor Statistics reported non-farm employers added 85,000 jobs in March, lower than its estimate of 126,000 jobs. In April employers added 223,000 jobs, trimming the unemployment rate to 5.4% from 5.5%. Meanwhile, Federal Reserve Chair Janet Yellen warned that stock valuations were too high. The Dow Jones Industrial Average rose 0.9% to finish at 18,191.11, while the S&P 500 Index advanced 0.4% to 2,116.10. Spot gold rose 0.8% to US$1187.50 per oz., and the Philadelphia Gold & Silver Index fell 0.98% to 72.47.

Agrium shares were up US$4.42 to US$108.74. The company reported net earnings of US$14 million (US8¢ per share), compared to US$3 million (US2¢ per share) in the first quarter of 2014. Adjusted net earnings were US$19 million (US12¢ per share). Its strong nitrogen sector contributed to wholesale gross profit of US$234 million, up from US$171 million in the year-ago quarter. Retail gross profit reached US$371 million, down from US$387 million. Agrium also raised its dividend by 12% to US$3.50 per share.

Franco-Nevada shares jumped US$1.34 to US$53.30 on first-quarter results. The royalty and streaming company produced 85,081 equivalent oz. gold and posted US$5.5 million from its oil and gas revenues. Net income and adjustable net income were US$19.2 million (US12¢ per share), and US$22.9 million (US15¢ per share). The company ended the quarter with US$598.5 million in cash and equivalents, and no debt.

A new streaming agreement sent Royal Gold down US85¢ to US$65.08 per share. The company announced a $130-million transaction with a subsidiary of Golden Star Resources. The funds will finance underground development projects at the Wassa and Prestea mines in Ghana. Royal Gold also agreed to a $20-million, four-year term loan to Golden Star, and Golden Star Resources will issue Royal Gold warrants to buy 5 million shares of its stock. Golden Star will give Royal Gold 8.5% of Wassa, Bogoso and Prestea gold until 185,000 oz. have been delivered; 5% until 22,500 oz.; and 3% thereafter. Royal Gold will pay Golden Star 20% of the spot price upon delivery until 207,500 oz. have been delivered, and 30% of the spot price thereafter.