US stocks inch up, Oct. 30-Nov. 5

U.S. equities stayed in positive territory, as investors waited for the monthly jobs report and possible reasons for the Federal Reserve to hike interest rates in December. The Dow Jones Industrial Average rose 107.63 points, or 0.6%, to 17,863.43. The S&P 500 Index climbed 10.52 points, or 0.5%, to 2,099.93, and the Nasdaq Composite Index rose 53.47 points, or 1%, to 5,127.74. The spot gold price fell US$43.20 per oz. to US$1,103.60.

Hi-Crush Partners shares climbed US$3.51, or 64%, to close at US$8.96. The week before, the large frac sand producer reported adjusted third-quarter earnings of US$5.6 million, or US15¢ per share. That amount excluded US$23.7 million of one-time expenses related to the writedown of assets from D&I Silica LLC in June 2013, as well as costs related to reducing headcount. Including those, the quarterly net loss was US$18.1 million, or US$49 per share, compared to earnings of US$1 per share in the same period last year. Revenues fell 20% to US$81.5 million on sales of 1.4 million tons of frac sand, as sand prices have dropped due to declining rigs and oil prices. Hi-Crush has temporarily halted its Augusta, Wis., production plant. Year-to-date, its shares have lost US$20, or 69% of its value.

Golden Minerals shares declined after the company said on Oct. 29 that it would suspend mining and processing at its Velardena mine and sulphide mill in Mexico in November, citing weak silver and gold prices, and lower-than-planned mill feed grades. Instead of operating at a loss, Golden Minerals estimates the shutdown will improve its net cash flow by US$1.5 million a year, excluding employee severance and other related costs. Shares lost 29% to finish at US22¢ per share, down 58% year-to-date.

Timmins Gold had a rough trading period, after announcing a third-quarter loss of US63¢ per share, compared to last year’s earnings of US1¢ per share. It also lowered its full-year gold production guidance to 90,000 oz. — down from 100,000 to 110,000 oz. — citing lower-than-planned grades to the leach pads and slightly lower crusher throughput. The firm also plans to shut its sole operating mine — San Francisco in Mexico — in mid-2016, instead of 2022. Given the low gold price and the earlier shutdown, Timmins Gold took a US$226.5-million writedown in the third quarter. It shares fell 23% to US16¢, down 84% year-to-date.