CAPITAL MARKETS

Markets, Newmont lower

Weak economic data out of China weighed on global markets yesterday and base metal prices including copper closed lower in London.

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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