New Orleans-based Blanchard and Co., the largest retail gold dealer in the U.S., received word from the U.S. District Court for the Eastern District of Louisiana that its lawsuit against Barrick Gold and J.P. Morgan Chase & Co. may now move into the discovery phase. The court denied the defendants’ motions to dismiss Blanchard’s complaint that Barrick and Morgan have violated U.S. antitrust laws by unlawfully combining to manipulate the gold price and to monopolize the gold market. The antitrust lawsuit was originally brought in December 2002. On the Big Board, Barrick rose 74 to US$20.70 while Morgan fell 44 to US$34.26.
Newmont Mining‘s Australian gold subsidiary, Newmont Yandal Operations, has emerged from voluntary administration. Almost 90% of creditors voted in favour of accepting Newmont’s terms. The unit was pushed into insolvency in July after Newmont failed to obtain 100% acceptance of a more generous offer to buy back creditors’ claims. Newmont rose $1.86 to US$39.76.
Durban Roodepoort Deep was the most-active mining stock in the U.S., rocketing 55 to US$3.05. The company surprised the market by raising US$43.1 million after South African investment bank Investec Group exercised a call option on 18 million DRD shares well ahead of an Oct. 3rd expiry date.
Despite the strong performance shown by most gold shares over the period, Denver-based royalty company Royal Gold led all U.S.-listed companies in lost value, dropping $2.83, or 11.5%, to US$21.70. Aparently the cause was the company’s new appearance on the “sell” list of a widely followed newsletter.
Be the first to comment on "Blanchard proceeds with lawsuit"