US markets remain flat, April 3-7

U.S. President Donald Trump’s unexpected decision to launch a U.S. military strike on a Syrian government airbase on April 6 failed to roil markets in New York as expected, but the action drove gold to a five-month high before finishing the week up 0.37% to US$1,253.80 per ounce. The Dow Jones Industrial Average slipped 0.04% to 20,656.10 and the S&P 500 Index dropped 0.30% to 2,355.54. West Texas Intermediate crude rose 3.2% to US$52 per barrel.

Shares of Rio Tinto fell US7¢ to US$40.61. The company reported on April 5 that amended income tax assessments from 2010 to 2013 by the Australian Commissioner of Taxation require that Rio pay additional tax of A$379 million, plus A$68 million in interest for a total of A$447 million. Rio says this payment would come along with A$25.5 billion in taxes and royalties that the company paid in Australia during the same four-year period. “Rio Tinto voluntarily approached the Australian Tax Office [ATO] more than a decade ago seeking to confirm its pricing arrangements,” the company stated. “The transfer price in dispute is in line with an outcome agreed by the ATO years prior to 2010. Rio Tinto considers that its pricing is in accordance with the internationally recognized Organisation for Economic Cooperation and Development guidelines and Australian domestic law.” The company noted that the assessments result in double taxation and that management will seek relief under the Australia-Singapore double tax treaty. In the meantime, however, it said it will pay half of the total amount this month.

Coeur Mining shares rose 6.9% to US$8.64. The company, which has five precious metal mines in the Americas, reported production results for the first quarter of 2017. Coeur produced 3.9 million oz. silver and 88,218 oz. gold, or 9.2 million equivalent oz. silver. The company’s full-year production guidance is unchanged at between 16.4 million and 18 million oz. silver and between 362,000 and 387,000 oz. gold, or a range of 38.1 million to 41.2 million equivalent oz. silver.

Harmony Gold shares rose 8.2% to US$2.65 apiece after a six-day strike at its Kusasalethu mine in South Africa. The company reached an agreement with employees but did not provide any details.