Miners recover

United States stock markets drifted marginally lower over the report period Jan. 5-11, with the S&P 500 index down 5.06 points at 1,182.99.

That masked a recovery in the resource sector as both golds and base metals miners mainly posted gains. Gold, which had been hit with a rising U.S. dollar at year-end, rallied somewhat near the end of the period, which gave the gold equities a boost. Newmont Mining was US87 higher at US$42.44, AngloGold Ashanti rose US52 to US$34.55, and Compania de Minas Buenaventura tacked on US33 to finish the period at US$21.89. Among the mid-tiers, Hecla Mining picked up US11, finishing at US$5.70, and Coeur d’Alene Mines closed at US$3.68, up US7.

Gold Fields, which was up US59 at US$12.63, announced that while it had not abandoned merger talks with Harmony Gold Mining, it still recommended shareholders reject any offer from Harmony. Harmony shares were up US57 at US$9.33.

It is clear the market expects another bid for WMC Resources, whose 4-share ADRs rose US15 to US$22.31. London-listed Xstrata has bid A$6.35 for WMC shares, or about US$19.30 per U.S. receipt. WMC delivered a target’s statement to the Australian Stock Exchange recommending its shareholders reject the Xstrata bid, which it said would fall to A$5.85 after scheduled dividend and capital-return payments. Melbourne-based investment house Grant Samuel valued the company at A$7.17 to A$8.24.

BHP Billiton was US60 higher at US$23.25, Phelps Dodge rose US$3.66 to US$95.71, and Rio Tinto gained US$1.81 to close at US$113.50.