US stocks fall, Aug. 22–26

U.S. equities tumbled during the last trading week of August, amidst speculation that the central bank could hike interest rates as early as mid-September. The Dow Jones Industrial Average fell 0.9% to 18,395.40, and the S&P 500 Index shed 0.7% to 2,169.04. The Nasdaq retreated 0.4% to 5,218.92. Spot gold finished at US$1,320.50 per oz., down 1.5%, after interest rate concerns. Oil dropped on higher-than-expected U.S. crude inventories and diminishing hope that major oil producers would lower output to prop up prices in a September meeting. U.S. crude oil futures retreated 0.9% to US$46.98 per barrel. Meanwhile, U.S. gross domestic product growth was slightly lower than thought, growing an annual 1.1% in the second quarter, compared to an estimated 1.2%.

Kinross Gold lost US63¢ to close at US$4.30 per share, after publishing an operational update for three of its gold mines. The gold producer suspended its Maricunga mine at the end of July instead of in the fourth quarter, after a judicial decision concluded that it would enforce the country’s environmental regulatory authority’s revised sanction for June 24, 2016. The sanction lowers water pumping at the mine, among other things. As a result, Kinross laid off 300 employees at Maricunga, cautioning the earlier-than-planned suspension should not affect its 2016 production and cost guidance.

Meanwhile, normal mining and processing resumed at Kinross’ Tasiast mine in Mauritania in August, after the temporary suspension from the expatriate work permit issue. The company also received a record of decision from the U.S. Bureau of Land Management to increase exploration and potential expansion activities at the Bald Mountain mine in Nevada. Kinross has reiterated its 2016 guidance of 2.7 million to 2.9 million equivalent oz. gold, at all-in sustaining costs of US$890 to US$990 per oz. gold.

Potash Corp. of Saskatchewan fell US14¢ per share to US$16.04, as the firm battled low fertilizer prices. On Aug. 30, the major’s stock price rose more than 13%, as it confirmed rumours that it was discussing a potential merger of equals with fertilizer major Agrium. The talks are preliminary, and may not result in a business combination, the company cautions.