• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 2 hours The Truth about Chinese and Indian Engineering
  • 3 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 hour China wields coronavirus to nationalize American-owned carmaker
  • 1 hour China's impending economic meltdown
  • 4 hours Why Oil could hit $100
  • 19 hours The World is Facing a Solar Panel Waste Problem
  • 11 hours Pompeo upsets China; oil & gas prices to fall
  • 3 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 6 hours Brent above $45. Holding breath for $50??
  • 2 hours Open letter from Politico about US-russian relations
  • 1 day Sell Natural Gas Benefits to Grow the Market!
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 1 day Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Rational analysis of CV19 from Harvard Medical School
Frik Els

Frik Els

Frik Els is editor for MINING.com in Vancouver, BC. Frik has been writing on business for the past 15 years covering the resource industry, investment, autos,…

More Info

Premium Content

Mining Company Stocks Crash as Metal Prices Fall

The gold price plunged by as much as $145 on Monday, the worst trading day in history and more than a 9% drop on the day.

The gold price fell to $1,355 in mid-morning – down $145 from the Friday close of $1,501 in New York – to a level last seen in January 2011.

Ever-volatile silver exaggerated gold's drop , giving  up more than 12% or $3.20 to $23.13 an ounce, heading for a close not seen since October 2010.

July platinum futures slumped 5.8% or $85.80 to $1,410 an ounce while palladium was also hard hit, down giving up 7.33% or more than $50 to trade at $658.20 an ounce.

Related article: Foreign Mining Companies Flee China

Copper slid to lows last seen in October 2011, but losses for the metals bellwether was relatively contained. Copper was last changing hands for $3.28 a pound, a 2.2% decline from Friday's close.

The retreat copper and precious metals led to a bloodbath for mining stocks with counters dropping across the board.

Mining's Big 3, world number one miner BHP Billiton (LON:BHP), Brazil's Vale (NYSE:VALE) and Rio Tinto (LON:RIO) all lost more than 6% on Monday.

Of the top diversified miners XStrata's ADRs listed in New York traded was the top loser, down 10.3% while merger partner Glencore International (LON:GLEN) shed more than 6%, Anglo American (LON:AAL) shares moved lower 6.3% and Canada's Teck Resources (TSX:TCK) was also one of the hardest hit giving up 9.3%.

Copper giant Freeport-McMoRan (NYSE:FCX) declined 8.6%, Southern Copper Corp (NYSE:SCCO) managed to keep losses at 7.7% while fellow South American copper producer Antofagasta (LON:ANTO) dropped just over 8%.

Not surprisingly gold producers were among the worst performers.

Related article: Silver - The Super Conductor

Barrick Gold Corp (TSX:ABX) lost 11% bringing the losses over the past trading week for the Toronto-based global number one gold miner to over 23%. Barrick's pain began before the gold price drop on Wednesday when a court in Chile ordered a halt to work at its massive Pascua-Lama project. Barrick is worth just over $20 billion on the TSX, less than half it was worth in 2011.

Denver-based Newmont Mining Corp (NYSE:NEM) shed 6.8%, while the world's third largest gold producer behind Newmont, AngloGold Ashanti (NYSE:AU) gave up 9.1%. The Johannesburg-based company's ADRs listed in New York is down a 40% year to date.

Fellow South African miner Gold Fields (NYSE:GFI) traded down 7.2%. Canadian gold counter Goldcorp (TSX:G) lost 5% while peer Kinross Gold (TSX:K) – which this year overtook Goldcorp as the world fifth largest gold miner in terms of output – suffered a staggering 12% drop on the day. Toront0-based Kinross which has been plagued by production problems is down more than 42% since the start of the year.

By. Frik Els


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News