GOLD PRICE NEWS – The gold price swung between gains and losses on Friday as financial markets weighed the impact of a mixed U.S. employment report and other positive economic data. The spot price of gold traded in a range between $1,662 and $1,683 per ounce following the January non-farm payrolls report. This afternoon, the gold price traded higher by $4.15, or 0.3%, at $1,669.28 per ounce.
Gold prices initially reacted in a positive manner to the latest jobs data, jumping from near $1,664 to their intra-day high of $1,683 per ounce. However, the yellow metal later relinquished the majority of its gains as the U.S. dollar rallied following better than expected reports on the ISM Manufacturing Index and University of Michigan Consumer Sentiment Index..
As for the employment data, non-farm payrolls showed a gain last month of 157,000 – above the 165,000 consensus estimate among economists. The unemployment rate also ticked up to 7.9%, surpassing the 7.8% level at which economists were expecting it to remain.
While the headline figures were worse than expectations, revisions to the two prior months’ of data was quite encouraging. Employment gains in December of 2012 were revised upwards from 155,000 to 196,000 an in November of last year from 161,000 to 247,000.
Silver reacted more positively to the jobs report than did the price of gold, as it jumped by $0.47, or 1.5%, to $31.95 per ounce in afternoon trading. Gold and silver stocks turned higher as well, buoyed by a combination of strength in precious metals and the broader equity markets.
The Philadelphia Gold & Silver Index (XAU) added 1.4% to 151.74 while the S&P 500 Index rose by 1.1% to another new four-year high of 1,514.41. In addition, the Dow Jones Industrial Average (DJIA) eclipsed the 14,000 level for the first time since October of 2007 and came within 1.3% of its all-time high of 14,198.10.
Among widely-traded gold and silver stocks, notable advancers included XAU components Anglogold Ashanti (AU), Newmont Mining (NEM), and Silver Wheaton (SLW). Shares of AU climbed by 4.3% to $29.23, NEM by 1.6% to $43.64, and SLW by 1.9% to $35.49.
Aurizon Mines’ Board Unanimously Recommends Rejecting Alamos Offer
Aurizon noted that the Alamos offer, based on the closing price of Alamos on January 22, 2013, represented a value of C$4.55 per Share assuming full pro-ration of the Alamos Offer consideration; this is a 4.1% discount to the closing price of Aurizon's shares on the same day and a 21% discount to the 52-week high share price of Aurizon. The Company also pointed out that the C$4.65 price has never been available to Aurizon shareholders, based on the implied offer value, since the Alamos offer announcement was made. Based on the current Alamos offer value of C$4.55 per share, the effective premium to Aurizon shareholders has eroded 4% relative to the closing price of the Aurizon Shares on January 11, 2013 – the last trading day prior to the Alamos offer announcement. Full Aurizon Mines Press Release.
- The Board's recommendation is based in part on the recommendation of the Special Committee and the advice from financial advisors to Aurizon and the Special Committee and follows a thorough review process, undertaken in consultation with its financial and legal advisors
- The Board noted that it has serious concerns about unequal treatment of Aurizon shareholders as a result of Alamos having entered into private share purchase agreements with certain shareholders of Aurizon immediately prior to the commencement of the Alamos Offer
- The Board intends to seek shareholder ratification of a shareholder rights plan at a special meeting of shareholders on March 7, 2013 in order to provide the Board with adequate time and measures to respond to unsolicited takeover bids
