Russian uncertainty pushes palladium to new record

With Russian shipments in question once again, the price of palladium shot up $90 during the July 26-Aug. 1 report period to a record London morning fix of US$855 per oz. on Aug. 2. The metal had slipped $3 by the afternoon session, after newswires reported that the country’s largest producer, Noril’sk Nickel, would renew shipments to Japan in September or October.

The uncertainty also pushed platinum ahead $46 to $612, only to cause it to slip $4 by the afternoon fix.

Unlike its precious metal cousins, gold fell $2.25 to US$277.15 per oz. on the morning of Aug. 2. Despite this, Canada’s major producers posted gains: Barrick Gold, which announced its successful acquisition of Pangea Goldfields, rose 35 to $24.25, and Placer Dome climbed 50 to $12.80. Going the opposite way was Kinross Gold, which slipped 15 to 95, strengthening its attractiveness as a takeover target.

Record quarterly production at its partly owned Sadiola Hill mine in Mali pushed Iamgold ahead 5 to $2.75. Iamgold holds a 38% share in Sadiola, as does AngloGold. The remainder is divided between the government, with 28%, and the World Bank, with 6%.

Base metal markets were generally quiet, with zinc gaining a penny, and copper and lead remaining at par. Nickel proved the exception, falling 18 to a London morning fix of US$3.47 per lb. on Aug. 2.

On Aug. 1, Falconbridge halted operations in Sudbury after 1,200 unionized workers walked off the job. Further talks are planned, although union officials warn that the strike could last months, as they refuse to budge on issues of seniority and protection against contract workers. Falconbridge ended the period up 20 at $16.85. The remaining nickel heavyweights were mixed, with Inco rising $1.05 to $22.65 and Sheritt International slipping 21 to $4.33.

Rio Algom climbed 20 to $17.65. On Aug. 2, the copper major announced it had earned $16 million in the second quarter, or four times more than it did a year ago. Higher production, lower cash costs and stronger copper prices are attributed to the improvement.

Among juniors, Niocan climbed 10 to 90 on news that it had been granted a mining permit for the Oka niobium project in southern Quebec. Quebec government-owned Soquem, already an 11.7% owner of Niocan, can acquire a 20% direct interest in the project, and, in a deal reached in May, Teck (tek-t) can earn 25%.

Ashton Mining of Canada jumped 13 to 78 after De Beers Consolidated Mines announced a hostile takeover bid for parent company Ashton Mining of Australia. Australian-based Ashton is part-owner of the Argyle mine, which is the world’s largest single producer of diamonds, and a 68.2%-owner in its Canadian exploration arm. By presstime, Ashton had risen another 5.