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How Did the Metals and Mining Sector Perform on October 4?

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Base metals and precious metals on October 4

On October 4, the stocks related to base metals and precious metals fell. The PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell 1.1% and ~4.1%. The SPDR Gold Shares (GLD) fell ~3.5%.

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Glencore plans to strengthen its balance sheet

Glencore (GLNCY), the multinational mining and trading giant, plans to strengthen its balance sheet by offering buybacks up to $1.25 billion. According to the statement released by Glencore on October 3, it offered to buy notes that are due in 2018 and 2019. Glencore plans to bring down its debt to $16.5 billion–$17.5 billion by the end of 2016. At the end of 1H16, Glencore’s debt was at $23.6 billion—compared to $29.6 billion at the end of 1H15. Last week, Rio Tinto (RIO), the Anglo-Australian multinational miner, announced an offer to repurchase bonds worth $3 billion.

Since the beginning of 2016, Glencore gained more than 107%. At 11:50 AM EST on October 4, it was trading at $5.47—a gain of ~0.28%.

Top five performers in gold industry

Below are the top five companies in the gold industry on October 4.

  • Solitario Exploration & Royalty (XPL) fell ~0%.
  • Entree Gold (EGI) fell ~3.5%.
  • Minco Gold (MGH) fell ~3.9%.
  • Comstock Mining (LODE) fell ~4.5%.
  • Gold Standard Ventures (GSV) fell ~7.8%.

Bottom five performers in gold industry

Below are the bottom five companies in the gold industry on October 4.

  • International Tower Hill Mines (THM) fell ~11.9%.
  • Yamana Gold (AUY) fell ~12.8%.
  • Asanko Gold (AKG) fell ~13%.
  • Kinross Gold (KGC) fell ~13.2%.
  • Gold Resource Corporation (GORO) fell ~18.7%.
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