US markets hit all-time highs, July 23-27

Spot gold prices fell US$$5.20 over the period at US$1,223.95 per oz. in the face of continued strength in the greenback. The Philadelphia Gold and Silver Index dropped 2.78 points to 76.79 and the Dow Jones Industrial Average advanced 392.94 points to 25,451.06 — hitting several all-time highs — while the S&P 500 Index surged 16.99 points to 2,818.82.

After a year of sifting through bids, the world’s largest mining company, BHP Billiton, has sold most of its onshore U.S. oil and gas assets to U.K. oil giant BP for US$10.5 billion in cash. BHP also sold similar onshore oil and gas assets in the southeast U.S. to Merit Energy for US$300 million. The sales end BHP’s costly foray into the U.S. shale sector, with the company having paid US$20 billion for the assets seven years ago, and spending almost as much developing them.

BHP will take an impairment charge of US$2.8 billion, post-tax, against the carrying value of its onshore U.S. assets. With its net debt at the lower end of its target range of US$10 billion to US$15 billion, BHP will return the net proceeds from the sale to its shareholders.

BHP has announced or completed more than US$18 billion in divestments over the last six years, in addition to the demerger of South32.

BHP shares ended the period up US$2.28 to US$50.76.

Newmont Mining has bought NovaGold Resources’ half-stake in the Galore Creek copper-gold project in B.C. for US$275 million. Teck Resources still owns the other 50% stake in the project, which is one of the largest undeveloped copper-gold-silver deposits in the world.

A 2011 prefeasibility study on the large-tonnage project forecast production over 18 years of 6.2 billion lb. copper, 4 million oz. gold and 65.8 million oz. silver.

NovaGold will now focus on its larger Donlin Gold gold project in Alaska — a joint venture with Barrick Gold.

Newmont shares were off US13¢ to US$36.89, while NovaGold shares dropped US13¢ to US$4.35.

The world’s largest publicly traded uranium miner — Canada’s Cameco — confirmed rumours that, owing to chronically low uranium prices, it is indefinitely suspending production at its McArthur River and Key Lake uranium mines in Saskatchewan.