US markets down, Sept. 16-20: AngloGold, Peabody, Alcoa

The Dow Jones Industrial Average fell 1.05% to 26,935.07, and the S&P 500 Index fell 0.51% to 2992.07. Spot gold gained US$28.80 per oz. to finish the trading week at US$1,516.70 per oz. gold.

AngloGold Ashanti shares rose 6.8% to US$20.22. The company signed an agreement with B2Gold on Sept. 16 that will see B2Gold — AngloGold’s joint-venture partner — fund a US$13.9-million investment and exploration program at the Gramalote project in Colombia next year to earn a fifty-fifty partnership, and take over project  management on Jan. 1, 2020. B2Gold owns a 48.3% stake in the Gramalote project, and AngloGold holds the other 51.7%. Both companies have agreed to complete a feasibility study for the project by the end of next year.

Coal producer Peabody Energy fell 15% to US$15.50 per share. The company announced on Sept. 19 that it has terminated its previously announced cash-tender offers to buy its $500 million in outstanding aggregate principal amount of 6% senior-secured notes due in 2022, and all of its $500 million in outstanding aggregate principal amount of 6.375% senior-secured notes due in 2025. The company says it will pursue another way to meet its longer-term refinancing goals, since current debt markets  do not allow the company to complete the offers in an economic way.

Alcoa shares shed 5.2% during the week to close at US$21.70. On Sept. 20, the major aluminum producer announced that members of the United Steelworkers (USW) have ratified a new labour agreement covering 1,700 employees in five locations across the United States. The company and the union agreed to a four-year contract on Aug. 30. The new agreement, which is in effect, covers employees represented by the USW at Warrick Operations in Indiana, Massena Operations in New York, Gum Springs in Arkansas, Wenatchee Works in Washington and Point Comfort in Texas.