Wall Street dips, June 29-July 2

U.S. equities fell ahead of the Independence Day weekend as Greece’s debt crisis continued. The Dow Jones Industrial Average and the S&P 500 Index both lost 1.2% to end at 17,730.11 and 2,076.78. The spot gold price slipped 0.6% to US$1,166.90 per oz.

Peabody Energy shares retreated 18% to US$1.87 after the coal miner lowered expectations for its second-quarter earnings due to weather-related shipment issues in the Powder River basin and weaker seaborne coal pricing.

Peabody had previously guided second-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between US$135 million and US$175 million, and an adjusted loss per share of US59¢ to US49¢. It expects adjusted EBITDA will drop by $US60 million, widening the expected loss per share. It blamed the fall on lower production in June — resulting from heavy rains and flash floods in Wyoming’s southern Powder River basin — coupled with weaker prices for Australian metallurgical coal.

In the coming months the miner is reducing 250 positions, or 25% of its corporate and regional staff, with expected annual savings of up to US$45 million. It looks to cut another 250 jobs at its Australian mines. Peabody expects to incur up to US$25 million in charges in the second quarter related to these activities. Its quarterly results should be out on July 28.

On July 1, Peabody named financial executive Amy Schwetz as its new executive vice-president and chief financial officer.

Solitario Exploration & Royalty jumped 25% to US65¢ per share no news. In mid-June, the company and Ely Gold agreed to sell their combined 100% interest in the Mt. Hamilton gold project in Nevada to a subsidiary of Waterton Precious Metals Fund for US$30 million in cash, of which Solitario will receive US$24 million. The transaction should close shortly. Waterton has also agreed to give Solitario a standby debt facility for the junior to repay its US$5-million loan with RMB Australia Holdings due in late August.