US stocks gain ground, Jan. 25-29

U.S. equities posted a second consecutive weekly gain, after a surprise move from the Bank of Japan to stimulate its economy. The Dow Jones Industrial Average rose 2.3% to 16,466.30, while the S&P 500 Index advanced 1.8% to 1,940.24. The Nasdaq retreated 0.5% to finish at 4.613.95. The spot gold price jumped US$19.80 to US$1,117.80. In January, the Dow lost 5.5%, the S&P 500 fell 5.1% and the Nasdaq plunged 7.9%. Spot gold, however, rose 5.4% in January, up US$57 from its 2015 close of US$1,061 per oz.

Barrick Gold was one of the most active  stocks, with 137.9 million shares traded. A week before, the miner announced preliminary 2015 full-year production results of 6.12 million oz. gold, within its revised guidance of 6 to 6.15 million oz. Full-year copper production came in at 511 million lb., within expectations. Along with meeting its output guidance, Barrick achieved its US$3-billion reduction target, cutting its debt 24% last year.

However, it expects US$1.8 billion in goodwill impairment charges and up to US$1.2 billion in asset impairment charges, mainly from the Pascua-Lama asset in Argentina and Chile, and Pueblo Viejo in the Dominican Republic. It assumes a US$1,000 per oz. gold price for 2016 and a long-term US$1,200 per oz. gold for the impairment tests. The test results and 2015 financials should be out on Feb. 17.

Barrick shares closed up US$1.33 to US$9.91, up 34% for January. Barrick was also the best performing stock on the Toronto Stock Exchange, registering a 36% monthly increase.

Coeur Mining rose 26% to US$2.21 per share, on no major corporate news. On Jan. 27, the company’s CEO Mitchell Krebs presented at the TD Securities Mining Conference in Toronto. He reiterated that in 2015, Coeur produced 35.6 million equivalent oz. silver, in line with guidance and a 10% increase over 2014. Coeur, which has six producing precious metal mines, anticipates churning out between 33.8 million and 36.8 million equivalent oz. silver in 2016. The stock dropped 11% in January.

Southern Copper was a value winner, climbing US$2.30 to US$25.92 per share. The miner announced a US3¢-per-share quarterly dividend, payable on March 1, to shareholders on record as of Feb. 16. The dividend is a cent below its November dividend.