US markets tank, June 8-12: AngloGold Ashanti, Rio Tinto, Kinross Gold

Coronavirus cases in the U.S. topped 2 million and fears of a rise in infections pummelled the stock market. The Dow Jones Industrial Average Index plunged 5.55%, or 1,505.44 points, to finish the June 8-12 trading week at 25,605.54, and the S&P 500 dropped 4.78%, or 152.62 points, to 3,041.31. Spot gold finished at US$1,730.50 per oz., a gain of US$46.50 per oz., or 2.76%.

Shares of AngloGold Ashanti rose US52¢ to US$24.34. The company reported unaudited quarterly results for the three months ended March 31. Strong performances from its Kibali mine in the Democratic Republic of Congo, Geita in Tanzania and Iduapriem in Ghana resulted in consolidated production of 716,000 oz. gold in the first quarter. The company noted that the impact of the coronavirus on production amounted to 11,000 oz. gold during the quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA) rose 51% year-on-year from US$288 million to US$434 million. The company reported liquidity of US$2 billion at the end of the quarter.

Rio Tinto CEO Jean-Sebastien Jacques apologized on June 12 for the company’s destruction in late May of two ancient and sacred Aboriginal caves in Western Australia. The caves contained artifacts considered evidence of habitation dating back thousands of years and the company blew them up with dynamite while carrying out work to expand its iron ore operation in the Pilbara region. “We are very sorry for the distress we have caused the PKKP in relation to Juukan Gorge and our first priority remains rebuilding trust with the PKKP,” Jacques said in a prepared statement. He was referring to the Puutu Kunti Kurrama and Pinikura (PKKP) people. He also said Rio Tinto would “fully cooperate with the inquiry by the Joint Standing Committee on Northern Australia while also continuing to support the West Australian government in the reform of the Aboriginal Heritage Act 1972 (WA).” Shares of Rio Tinto rose US95¢ to finish the week at US$57.50

Shares of Kinross Gold were down US3¢ to US$6.19. The gold miner sold its 10.93 million shares in Pinecrest Resources at a price of C36¢ per share for proceeds of C$3.9 million. The shares made up about 17% of Pinecrest’s issued and outstanding shares. Kinross no longer owns any shares in the junior. Pinecrest noted that Ruffer LLP along with other institutional investors in London, Hong Kong, Canada and the U.S. purchased the shares. Pinecrest is advancing its Enchi gold project in southwestern Ghana. Enchi has inferred resources of 37.36 million tonnes grading 0.90 gram gold per tonne for 1.08 million oz. gold using a cut-off grade of 0.5 gram gold.