The trading week began with U.S. President Donald Trump reimposing a number of sanctions on Iran — three months after he pulled the U.S. out of the Iran nuclear deal — and ended with his doubling of aluminium and steel tariffs on Turkey. The Dow Jones Industrial Average fell 0.59% to 25,313.14 and the S&P 500 Index lost 0.25% to finish at 2,833.28. Spot gold closed at US$1,211.20 per oz., down 0.17%.
Shares of Seabridge Gold rose US50¢ to US$12.20 apiece, despite posting a net loss of $2.4 million (4¢ per share) in the second quarter, up from a loss of $1.7 million (3¢ per share) in the same quarter last year. The company pointed to second-quarter highlights, including the discovery of two gold zones at Courageous Lake in the Northwest Territories, the start of a drill program at KSM in B.C., and the first exploration program at its Snowstorm gold project in Nevada. Management said it also strengthened its balance sheet with a $19.7 million flow-through financing, bringing its net working capital at the end of June to $27.7 million, up from $19.6 million as of Dec. 31, 2017.
Shares of Franco-Nevada fell US$1.46 to US$71.67. The company entered into a strategic relationship with top-10 independent oil producer Continental Resources to jointly acquire mineral rights in the Stack & Scoop oil and gas plays of Oklahoma. Under the agreement, Franco-Nevada would contribute US$220 million for acquiring mineral rights owned by a subsidiary of Continental. It has also committed to spend up to US$100 million per year over the next three years to acquire more mineral rights. The existing mineral rights will be jointly held through a newly formed company. The company also reported second-quarter results, posting US$53.6 million of net income (US29¢ per share) on revenues of US$161.3 million. It sold 107,333 equivalent oz. gold and ended the quarter with US$158.4 million in working capital, and no debt.
Fortuna Silver Mines’ shares dropped 10.7% to finish at US$4.77. The company reported net income in the second quarter of US$11.2 million, up from US$8.9 million in the second quarter of 2017. At the end of June, Fortuna held cash and equivalents of US$198.3 million.