The Dow Jones Industrial Average rose 0.56% to finish the trading week at 26,559.54, and the S&P 500 Index lost 0.08% to end the week at 2,905.03. Spot gold fell US$14.30 per oz. to US$1,275.50 per oz. gold.
Shares of Newmont Mining — the most traded stock of the week — fell US$3.21 to US$33.04 per share. The company announced on April 18 that it had combined with Goldcorp to create what it describes as the world’s “leading gold business,” with “an unmatched portfolio of assets, prospects and talent.” Newmont noted that the larger company offers investors “the highest annual dividend, and the largest reserves and resources per share among senior gold producers.” Newmont has a production target of 6 million to 7 million oz. gold over a decades-long time horizon.
Yamana Gold closed down US33¢ at $2.23 per share, and was the fourth most traded stock. The company announced selling its Chapada mine in Brazil to Lundin Mining for US$800 million. Yamana has a 2% net smelter return royalty on future gold production from the Suruca gold deposit on the property, and receives contingent consideration of up to US$125 million over five years, if certain gold-price thresholds are met. Yamana’s executive chairman, Peter Marrone, said the sale “delivers a significant gain, delivers a high after-tax return and financially repositions the company — with a significant and immediate improvement to overall financial flexibility, thereby allowing the company to pursue near-term, value-maximizing portfolio opportunities, and also to increase shareholder returns, initially by way of a 100% increase in the annual dividend.”
The end of a five-month strike at Sibanye-Stillwater’s gold operations in South Africa sent the company’s shares up US15¢ to US$4.01. The Association of Mineworkers and Construction Union agreed to sign the 2018 three-year wage agreement previously signed with National Union of Mineworkers, Solidarity and UASA in respect of wages and service conditions from July 1, 2018 to June 30, 2021, and affirmed their commitment to conclude a peace pact within 30 days, and abide by the decisions of the court, and not pursue any further appeals.
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