The Dow Jones Industrial Average rose 0.94%% to finish the week at 34,529.45 and the S&P 500 advanced 1.16% to 4,204.11. Spot gold gained US$22.80 per oz., or 1.21%, to US$1,903.50 per ounce.
Nutrien climbed US$2.19 to US$62.15 per share. Canada’s Globe and Mail newspaper reported the company is in talks with BHP Group about a potential US$5 billion joint venture on BHP’s Jansen potash mine in Saskatchewan. The article on May 28 reported that the two companies are discussing multiple options, including Nutrien becoming the operator and selling the potash through its existing channels or taking a stake in the Jansen mine. The company has spent US$4.5 billion and built two 1,000-metre shafts, but has yet to approve the project. BHP’s board is set to make a final decision in the coming months. The world’s largest miner has repeatedly said it’s open to bringing a partner into the project, especially one with expertise in the fertilizer or potash market. While that’s a product it currently doesn’t mine, BHP has said it sees potash as a potential cornerstone of its future business.
Shares of Cleveland-Cliffs increased by US$2.06 to US$20.12. The company announced it intends to redeem the entirety of its US$396 million aggregate principal amount of 5.75% senior unsecured guaranteed notes due March 2025. Cleveland-Cliffs said it expects the total payment to holders of the notes, including the redemption premium, to be about US$407 million, plus accrued and unpaid interest to the redemption date, which is expected to be on or before June 30, 2021. The redemption of the notes using available liquidity, nearly four years ahead of their maturity date, “represents the first step in our mission to achieve zero net debt,” Lourenco Goncalves, the company’s president and CEO, said in a news release. “Going forward, deleveraging will remain our top priority.”
Rio Tinto rose US$1.78 to US$87.43 per share. The company announced it is partnering with Comptech, a supplier of equipment for aluminium semi-solid castings, to deliver a new generation of aluminium alloys for use in advanced technologies such as electric vehicles and 5G antennas. Rio said it would be responsible for designing the alloys for the semi-solid rheocasting process offered by Comptech to meet the requirements of producing large, specialized single-piece designs, known as giga-casting. Rheocasting allows for low-cost aluminium components with high strength, extremely low porosity, and a broad range of possible alloys. Rio Tinto and Comptech said the alloys are undergoing qualification with carmakers in Europe.
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