Gold and Silver Report: NEM Stock Surges on Report of Failed ABX Merger

Gold sank on Monday as U.S. equities markets moved higher for a fifth consecutive session. The metal fell despite reports of a bloody clash in Ukraine involving pro-Russian militias over the weekend. Last week, an agreement between Russia, Ukraine and Western powers appeared to ease tensions, but U.S. leaders have since questioned Russia’s compliance with the deal.

gold-and-silver-NEM-stock-ABXNewmont Mining (NEM) shares jumped more than 6% as media reports indicated that merger talks with Barrick Gold (ABX) had broken down after the companies could not agree on how to divest Australian and New Zealand mining assets. Wall Street had been expecting the merger’s announcement as early this week. A merger between NEM and ABX would have created a combined company with a market capitalization of $30 billion. That said, according to reports, talks could be resumed later.

ABX shares fell almost 4% during the day.

Gold futures for June delivery slid 0.4% to $1,288.50 per ounce on Monday, according to CME Group. Gold prices were as high as $1,302.50 and as low as $1,281.80. Bullion closed in London at $1,292, according to BullionVault.

Silver futures for May delivery dropped 1.3% to settle at $19.35 per ounce. Monday’s high for silver was $19.71, while the low was $19.23.

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

Gold and Silver Funds

  • The SPDR Gold Shares (GLD) dipped 0.4%.
  • The iShares Gold Trust (IAU) sank 0.4%.
  • The iShares Silver Trust (SLV) dropped 1.1%.

Gold and Silver Mining ETFs

  • The Market Vectors Gold Miners ETF (GDX) declined 0.3%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) rose 0.5%.
  • The Global X Silver Miners ETF (SIL) slid 0.7%.

Gold Miners

  • Agnico Eagle Mines (AEM) fell 3.9%.
  • ABX dropped 3.9%.
  • Eldorado Gold (EGO) slid 1.6%.
  • Goldcorp (GG) climbed 2.1%.
  • Kinross Gold (KGC) added 0.7%.
  • NEM stock soared 6.4%.
  • NovaGold Resources (NG) dropped 2%.
  • Yamana Gold (AUY) pulled back 2.4%.

Silver Miners

  • Coeur d’Alene Mines (CDE) fell 0.9%.
  • Hecla Mining (HL) sank 2.3%.
  • Pan American Silver (PAAS) faded 0.9%.
  • Silver Wheaton (SLW) dipped 0.3%.
  • Silver Standard Resources (SSRI) slid 1%.

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

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