US markets recoup post-Brexit losses, June 27-30

U.S. equities largely recovered from the turmoil after the Brexit vote, as diminished prospects of interest rate hikes in the U.S. drove gold and silver prices higher. For the trading period, the S&P 500 Index and Dow Jones Industrial Average finished at 2,098.86 and 17,929.99, both up 3%. The Nasdaq rose 5.4% to 4,842.67. Gold and silver finished at US$1,341.35 and US$18.71, up 1.6% and 5.4%.

Gold and silver companies were among the top value gainers. Franco-Nevada shares rose US$6.29 to US$78.72, Agnico Eagle Mines shares climbed US$3.57 to US$55.60 and Silver Wheaton gained US$3.49 to US$24.78 per share.

Shares of Newmont Mining rose US$3.15 to US$40.34 on the back of surging gold prices and news of a plan to sell its remaining 48.5% stake in the Batu Hijau copper-gold mine in western Sumbawa to a private Indonesian firm for US$1.3 billion. Newmont said payment would be comprised of US$920 million in cash, and contingent payments of US$403 million tied to metal upside and development of the Elang copper-gold project, 60 km east of Batu Hijau. The transaction is expected to close in the third quarter.

Lightweight metals leader Alcoa saw 120.3 million shares change hands before closing up US17¢ to US$9.55-per-share close. The company won a US$470-million contract to supply aluminum sheet and plate to airplane-manufacturer Embraer. More importantly Alcoa plans to split its business into two companies — one that manages its traditional upstream smelting business, and another that serves the aerospace and automotive industries. The companies would be named Alcoa and Arconic, and the separation is due before year-end.

Shares of Pretium Resources gained US17¢ to US$11.69 per share, boosted by a rally in precious metals. The company says construction and development of its underground, high-grade gold Brucejack project in northwestern B.C. is on schedule for commissioning in mid-2017. Tower foundations for the transmission line are advancing, and the site should be connected to the B.C. power grid by year-end. Collaring of the main portal access has also started, with full enclosure of the mill building expected by the third quarter.