Metal sector weakened on Thursday
The weakness in copper and gold prices dragged the stock prices of companies in the metals and mining sector on Thursday, June 16. The PowerShares DB Silver ETF (DBS) and the SPDR Gold Shares ETF (GLD) fell by ~1.7% and ~1.0%, respectively.
Glencore plans to sell option in the Horne project
According to a recent news report, Glencore (GLNCY) is planning to sell its option in the Horne 5 gold project located in Quebec. However, there is no official confirmation. This gold mine is owned by Falco Resources, and Glencore has the right to buy back 65% of the stake that was inherited when it acquired Xstrata.
According to Falco Resources, this Horne 5 gold mine has a net asset value close to $667 million at the gold rate of $1,250 per ounce. Glencore has been selling its assets as a part of its debt reduction program. At 12:18 PM EDT on Thursday, June 16, Glencore was trading at $3.84, a gain of ~1.3%.
Barrick Gold must start acquiring bigger assets
At 12:28 PM EFT on Thursday, Barrick Gold (ABX), the largest gold miner in the world, was trading at $20.60, a gain of 0.48%. According to John Bridges, an analyst at J.P. Morgan, Barrick Gold must start acquiring larger assets in order to avoid a decline in its future production.
Since the beginning of 2016, Barrick Gold has gained close to 180%.