Golds mixed

U.S. markets were a little stronger in the first few days of 2004, with the S&P 500 index adding 14.03 points over the trading period Dec. 30-Jan. 6 to finish at 1,123.67.

The U.S.-listed golds were mixed. Among the big three, only Gold Fields posted a gain, picking up US60 to finish at US$14.50. Newmont Mining was off US57 at US$48.84, and announced it was beginning development of the Phoenix gold deposit in north-central Nevada. Phoenix will produce 400,000-450,000 oz. gold and 18-20 million lbs. copper annually, starting in 2006. Reserves at Phoenix, 174 million tons grading 0.034 oz. gold per tonne, will support a 15-year mine life. AngloGold was down US67 at US$47.88, with merger target Ashanti Goldfields shedding US26 to finish at US$13.12. But things looked a little better for other South Africans, with Harmony Gold up US43 at US$16.88 and Durban Roodepoort Deeps adding US61 to close at US$3.74.

Among the mid-tier producers, Coeur d’Alene Mines was US91 better at US$6.66. Coeur announced that feasibility studies at its San Bartolome placer-silver project in Bolivia and its Kensington gold project near Juneau, Alaska, had indicated “significantly improved” economics for both operations. San Bartolome is slated to start up in 2006 if final feasibility studies prove positive, producing 6 million oz. silver annually. Kensington could go into production at a 100,000-oz.-per-year pace in the same year.

The big diversified miners all made gains: Anglo American was up US75 at US$22.95, BHP Billiton rose US90 to US$19.20, and Rio Tinto picked up US$5.38 to close at US$115.50. Homebrew Phelps Dodge didn’t share in the joy, falling US$2.06 to US$77.34.