Market Vectors Gold Miners ETF (NYSEARCA:GDX) down by 2.96%, Freeport-McMoRan Copper & Gold Inc (NYSE:FCX)

Posted by Chris Bell May 8, 2013 0 Comment 1453 views


Market Vectors Gold Miners ETF (NYSEARCA:GDX): In Tuesday’s trading session, Market Vectors Gold Miners ETF (NYSEARCA:GDX) dipped by 2.96%. The opening price of the shares was $29.10 which reached an intraday high of $29.23 before dipping to $28.63 per share. More than 21.19M shares were traded in Tuesday’s trading session which was higher than the average volume of 20.61 million that was measured over a period of 30 days.

Barron’s reports had put up a note on the Focus and Funds column that a large percentage of the volume of GDX shares was bought at an average premium amounting to $0.89 per contract. Put buyers are hoping to profit when these expire in June. Towards the end of the fourth-quarter, GDX was still a holding for hedge fund managers such as George Soros and David Einhorn. However, this has not deterred the ETF from performing considerably worse than the precious metal itself. The SPDR Gold Shares that actually has a gold backing was last outperformed by GDX in 2010, on an annual basis.

Freeport-McMoRan Copper & Gold Inc (NYSE:FCX): In Tuesday’s session, shares of Freeport-McMoRan Copper & Gold Inc (NYSE:FCX) rose by 0.38%. The opening price of the shares was $31.35 which reached an intraday high of $31.97 before dipping to $31.25 per share. Over 17.26M shares were traded in Tuesday’s trading which was lower than the average volume of 19.43M that was measured over a period of 30 days.

The company said that it is proposing to acquire McMoRan Exploration Co. A special shareholders meeting will be held by the latter on 3 June 2013, to cast a vote on the buyout that has been proposed by Freeport. Definitive merger pacts were landed by Freeport with McMoRan in Dec 2012. The deal has a total worth of $9 billion. The company has been strategizing to diversify from its core copper mining business and this merger is one step in that direction.

In accordance with the agreement, Freeport will be paying cash of $14.75 per share to but McMoRan Exploration. The latter’s stakeholders will also get a royalty trust of 1.15 units, for every share that is held by them.


About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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