In another strong display of staying power, gold jumped US$4.50 over the holiday-shortened Dec. 20-26 report period, adding to a 25 gain in the previous week. The yellow metal, which was fixed at US$274.70 per oz. on the morning of Dec. 27, is benefitting from the U.S. Federal Reserve’s recent decision to keep interest rates steady for the time being.
With Russian deliveries in doubt once again, palladium jumped to a record US$972 per oz. for a gain of US$39. Riding on its coattails was platinum, which edged ahead US$7 to US$610 per oz.
Canada’s major gold producers were mixed, with Barrick Gold dropping 20 to $25 and Placer Dome rising 10 to $15.25. Kinross Gold, the smallest of the three, slipped 3 to 84.
Included in a flurry of diamond news was Aber Diamonds‘ decision to sell its 32% stake in the promising Snap Lake project, in the Northwest Territories, in order to finance its share of development costs at the now-fully-permitted Diavik project. American- listed De Beers Consolidated Mines, which is the buyer, stands to gain complete control of Snap Lake through the deal. Aber closed down 15 at $13.95.
Although behind schedule, Namibian Minerals‘ new Nam 2 seabed crawler picked its first diamonds off the coast of Namibia. Combined with NamSoll, the crawler’s predecessor, and two conventional airlift vessels, Nam 2 is expected to increase the marine diamond miner’s production to 200,000 carats in 2001. Namibian ended the period 10 higher at $3.10.
The base metals were relatively quiet, with lead and zinc being the only movers: the former’s 1 gain was mirrored by the latter’s 1 loss. Like their precious metal peers, producers of base metals were a mixed bag: Inco climbed 32 to $24.72 and Cominco ascended 20 $25.30, whereas Falconbridge sank 70 to $16.45 and Sheritt International dropped 25 to $14.13; Teck B-series rose 10 to $13 and Noranda edged ahead 5 to $15; while Boliden slipped 4 to end the period at 84.
Despite having completed a private placement, First Quantum Minerals dipped 2 to $3.10. The company, which produces copper and cobalt from three operations in Zambia, raised $14.8 million by issuing just over 4.9 million shares at $3 apiece. Most of the proceeds are being held in escrow, pending the company’s obtaining a listing on the London Stock Exchange’s Alternative Investment Market and repaying Swiss-based partner Glencore International; otherwise, the shares may have to be repurchased.
General Minerals slipped 2 to 18 on news of issuing 15 million shares at 28 apiece to Australian-based Ranger Minerals. The transaction adds $4.2 million to the junior’s coffers at the expense of making Ranger its majority shareholder. Proceeds are earmarked for various projects in Chile and Bolivia.
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