Gold miners steal the show

A late-period slide erased earlier gains and helped the Toronto Stock Exchange’s gold index end the July 7-13 report period 0.23 of a point lower at 202.97. The gold miners mirrored the yellow metal, which managed to retain some of its earlier gains to finish US$1.25 per oz. better at US$400.90 in the afternoon in London on July 13. All of the precious metals suffered significant losses at day’s end in New York; silver led the way, falling US14, or more than 2%, to US$6.37 per oz.

The diversified miners dropped 0.83 of a point to 223.54 as the base metals ended with mixed results. Overall, the S&P-TSX Composite Index yo-yoed itself 29.34 points lower to 8,452.6.

In the latest turn in the continuing saga, Iamgold has adopted a one-month shareholder rights plan to give it time to seek out a “white knight” to help it fend off the hostile advances of Golden Star Resources. The plan, which is triggered by any bid for at least 20% of the company’s issue, involves the immediate attachment of one right to each existing share. Each right is good for one additional share at half the going price. The plan expires Aug. 15. Iamgold says Golden Star’s current bid would trigger the plan; Golden Star could remedy that by extending its deadline to Aug. 15 from July 16. Iamgold advanced 33 to $8.64, while Golden Star shed 8 to $6.62.

Meanwhile, Coeur d’Alene Mines has begun mailing its offer directly to Wheaton River Minerals‘ shareholders. Wheaton continues to refuse to engage in merger talks with the Idaho-based silver miner. Wheaton tacked on 20 to reach $3.88.

SpectrumGold‘s shareholders approved an all-share business combination with NovaGold Resources. NovaGold, which already owns 56% of SpectrumGold, gained 58 to reach $7.17; SpectrumGold shot up 51 to $5.29.

Placer Dome was the busiest of Canada’s major gold miners, with 10.5 million shares wending their way 13 lower to $22.33. Placer recently received a notice of default regarding its financing obligations under a shareholders’ agreement with Bema Gold and Vancouver-listed Arizona Star Resource at the Cerro Casale gold-copper project in Chile. The juniors are threatening arbitration aimed at revoking Placer’s 51% stake in the project. For their part, Bema’s shares fell 7 to $3.63.

Meanwhile, shares in Barrick Gold rose 48 to $27.33 after the major announced that Ivanhoe Mines‘ Oyu Tolgoi copper-gold project in Mongolia failed to meet its investment criteria. The news sent Ivanhoe reeling to the tune of 54 to settle at $6.61.

Crystallex International tumbled 27 to $3.17 as Venezuela’s Supreme Court accepted as “legally valid and worthy of consideration” a May 2002 appeal over ownership of the Las Cristinas gold deposit, filed by MINCA, a 95%-owned subsidiary of Vancouver-listed Vannessa Ventures. The appeal seeks an annulment of the state’s assumption of control and granting of exclusive development rights to Crystallex. Vannessa has long maintained MINCA holds the development rights.

Diamond Fields International got a late-period shot in the arm, jumping 15, or 22%, to 83. The company recently sold a 7,126.92-carats for an average of US$239.16 per carat.