CAPITAL MARKETS

Markets, Newmont lower

Gold major falls on acquisition announcement

Staff reporter
Gold major falls on acquisition announcement

Gold major falls on acquisition announcement

Meanwhile Newmont Mining (NYSE: NEM) posted the second-biggest drop on the S&P500 yesterday, of 8.9%, in the wake of its announced US$10 billion all-scrip acquisition of Goldcorp.

Goldcorp (TSX: G) however rose more than 7.5% in Toronto, where metals and mining stocks had closed collectively 0.38% in the red.

The gold price remains just over $1,290 an ounce on the spot market as macro uncertainties including Brexit continue.

In London, Rio Tinto (LSE: RIO) had closed down 0.17% yesterday. The miner has reportedly declared force majeure on some of its iron ore contracts, after a fire at a port in Western Australia last week damaged a section of the plant that separates its Robe Valley lump and fine products.

In Australian trade, BHP (ASX: BHP) was up almost 1% at the time of writing in a positive afternoon on the S&P/ASX200 index.

And Syrah Resources (ASX: SYR) had added more than 10% to yesterday's gains in the wake of declaring commercial production at its Balama graphite project in Mozambique.

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