US markets move higher, Nov. 11-15: Sibanye-Stillwater, Wheaton, Arch Coal

The Dow Jones Industrial Average rose 1.17% to 28,004.89, and the S&P 500 Index increased 0.89% to 3,120.46. Spot gold gained 0.62% to US$1,467.90.

Sibanye-Stillwater climbed US52¢ per share, or 7.39%, to US$7.56. The company reached three-year wage agreements with unions for its Rustenburg and Marikana operations in South Africa, which comprise part of the SA Platinum Group Metals operations. CEO Neal Froneman said the negotiations were conducted without any disruption. The company employs more than 33,000 employees, excluding contractors, at its Marikana and Rustenburg operations on the Western Limb of the Bushveld complex. Rustenberg is 120 km northwest of Johannesburg, and Marikana is 40 km east of Rustenberg.

Wheaton Precious Metals’ shares rose US66¢, or 2.51%, to US$26.94. The company generated US$142.3 million in operating cash flow in the third quarter and adjusted net earnings of US$75.96 million — year-on-year increases of 31% and 107%, respectively. Attributable gold production in the three months ended Sept. 30 came in at 104.2 million. The company updated its 2019 guidance to 390,000 attributable oz. gold production from 385,000 oz. previously, owing to strong performance by the Salobo mine in Brazil, and 21 million  attributable oz. silver production, down from 22.5 million oz., to reflect production interruptions at the Penasquito mine in Mexico. Its forecast for palladium remains unchanged at 22,000 attributable ounces.

Shares of Arch Coal fell US$3.99, or 4.96%, to US$76.43. The company discontinued longwall operations at its Mountain Laurel mine in West Virginia three months earlier than planned. Management said it expects the move will lower the company’s fourth-quarter coking coal volumes by between 150,000 and 200,000 tonnes, and its operating results by US$20 million. Once removed from the mine, the longwall system will be refurbished and relocated to the Leer South mine, where longwall production is expected to start in the third quarter of 2021. The move accelerates the planned transition of Mountain Laurel to a room-and-pillar operation.