Gold and Silver Report: NEM Stock Drops as ABX Merger Talks End

by Christopher Freeburn | April 28, 2014 5:02 pm

Gold edged lower in Monday trading. The metal slipped even as the U.S. imposed a fresh round of sanctions on officials and companies close to Russian President Vladimir Putin.

Newmont Mining (NEM[1]) shares tumbled after it called off merger talks with fellow miner Barrick Gold (ABX[2]). In a letter to Barrick’s board[3], NEM complained that “our efforts to find consensus have been rejected out of hand repeatedly.” NEM stock ended the day down almost 7%, while ABX shares fell more than 3%.

Gold futures for June delivery dipped 0.1% to $1,299 per ounce on Monday, according to CME Group[4]. Gold prices were as high as $1,306.60 and as low as $1,292.10. Bullion closed in London at $1,297, according to BullionVault[5].

Silver futures for May delivery sank 0.5% at $19.59 per ounce. Monday’s high for silver was $19.76, while the low was $19.47.

Here’s how metal-based funds and mining stocks fared on Monday:

Gold and Silver Funds

• The SPDR Gold Shares (GLD[6]) fell 0.4%.
• The iShares Gold Trust (IAU[7]) faded 0.5%.
• The iShares Silver Trust (SLV[8]) also declined 0.5%.

Gold and Silver Mining ETFs

• The Market Vectors Gold Miners ETF (GDX[9]) slid 1.9%.
• The Market Vectors Junior Gold Miners ETF (GDXJ[10]) dropped 3.5%.
• The Global X Silver Miners ETF (SIL[11]) sank 1.6%.

Gold Miners

• Agnico Eagle Mines (AEM[12]) fell 0.5%.
• ABX declined 3.1%.
• Eldorado Gold (EGO[13]) was flat.
• Goldcorp (GG[14]) sank 1.5%.
• Kinross Gold (KGC[15]) dropped 3.4%.
• NEM stock plunged 6.7%.
• NovaGold (NG[16]) tumbled 5.2%.
• Yamana Gold (AUY[17]) slid 2.2%.

Silver Miners

• Coeur d’Alene Mines (CDE[18]) dropped 2.8%.
• Hecla Mining (HL[19]) sank 1.3%.
• Pan American Silver (PAAS[20]) fell 3.1%.
• Silver Wheaton (SLW[21]) slid 1.1%.
• Silver Standard Resources (SSRI[22]) dropped 3.8%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.

Source URL: http://investorplace.com/2014/04/gold-and-silver-report-hem-stock-abx-merger-end/
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