US gold producers rise to the occasion

The Dow Jones Industrial Average had an anything-but-average week, shedding 2.7% to finish the March 20-26 period at just over 10,353 points. The Standard & Poor’s 500 was also down an equivalent percentage.

A surge in bullion prices resulted in gains for producers: Compania de Minas Buenaventura skyrocketed $2.60 to US$26.60 on a relatively small volume: Newmont Mining jumped $1.80 to US$26.45 as 19 million shares changed hands, once again making it the most active issue; and Gold Fields ascended $1.54 to US$9.98 as 18.6 million shares were traded.

Ashanti Goldfields announced it had earned US$62.1 million in 2001, about 325% more than in 2000, when exceptional items dragged the producer deep into the red. However, revenue, cash flow and cash operating costs worsened year-over-year, owing to lower production and other factors. Ashanti is making progress on a restructuring plan that was forced on it after the bullion spike of late 1999 wreaked havoc on the company’s hedge book. Ashanti rose 23 to finish the period at US$5.14.

Copper producers were mixed, with Phelps Dodge tanking $1.23 to US$40.94, Freeport McMoRan & Gold‘s B series rising 35 to US$16.45, and Southern Peru Copper edging ahead 50 to US$13.20. Spot copper cathode was off a penny in London markets, fixed at US73 per lb.

Diversified titans Rio Tinto, Anglo American and BHP Billiton were all down but by very different amounts: Rio lost US$4.35 to finish at US$79.90; Anglo shed 7 to close at US$16.40; and BHP shed 42 to end at US$11.83.