U.S. equities tumbled on the back of lower precious and base metal prices and a mixed jobs report, which raised the question of whether the U.S. Federal Reserve would hike interest rates. The S&P 500 Index fell 1.9% to 1,947.76, while the Dow Jones Industrial Average dropped 3.2% to 16,102.38. The Nasdaq lost nearly 3% to finish at 4,683.92.
In commodities, the spot gold price slipped 0.97% to US$1,122.80 per oz. Silver stayed flat at US$14.60 per oz., while platinum and palladium lost ground. Copper spot dipped 0.8% to US$2.31 per lb. Nickel, lead and zinc all finished lower. Crude oil for October futures gained 1.8% to settle at US$46.05 per barrel on the New York Mercantile Exchange.
The U.S. economy added 173,000 jobs in August, compared to the 220,000 jobs economists had expected. This was below July’s revised gain of 245,000. However, the unemployment rate fell from 5.3% to 5.1% — its lowest level since early 2008.
Northern Dynasty Minerals, the week’s percentage winner, climbed 13% to US40¢ per share. The company closed the first tranche of a fundraising through a private placement of 25.6 million special warrants. Each warrant is exercisable into one common share at 0.399¢, for gross proceeds of $10.2 million.
Northern Dynasty also signed a definitive agreement to acquire inactive firm Cannon Point Resources, whose main asset is $4.7 million in cash, for 12.9 million shares. Under the all-share transaction, expected to close in October, Cannon Point will give Northern Dynasty a $4.3-million secured loan.
Sociedad Quimica y Minera de Chile added $1.05, or 6.7%, to close at US$16.54 per share on no news. A week before the major potash producer and the world’s largest lithium and iodine producer reported 2015 profits of US$154.9 million and US$83.2 million, beating the profits achieved by last year’s third quarter.
Freeport-McMoRan fell US79¢ to finish at US$9.71 per share on 207 million shares traded. On Aug. 27 the company revised its capital and operating plans due to weaker copper prices. Freeport expects to lower its 2016 mining capital costs by 25% and its U.S. mine staff by 10%, among other changes.
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