Kaiser thrown US$300m lifeline

Nosediving 50% to US35, Kaiser Aluminum won the flameout-of-the-week award by filing for bankruptcy protection and obtaining US$300 million in debtor-in-possession financing from the Bank of America.

Kaiser, North America’s third-largest aluminum producer, insists its production and shipments of bauxite, alumina and aluminum products will continue without interruption.

In contrast, the rest of the sector fared well: Kaiser rival Alcoa surged $2.22 to US$35.51; BHP Billiton rose 24 to US$12.20; Phelps Dodge advanced $2.81 to US$36.36; Rio Tinto jumped another $3.40 to US$83; and Anglo American shares were up 90 to US$17.84.

Gold miner Newmont Mining retreated $1.10 to US$23.97 as shareholders voted to approve acquiring Normandy Mining and Franco-Nevada Mining.

Calling 2001 its “turnaround year,” Hecla Mining roared ahead 13 to $1.36 as it posted earnings of US$2.3 million, compared to an $84-million loss in 2000. Hecla’s numbers for 2001 speak for themselves: a 33% increase in gold production; a 37% decrease in cash costs per ounce of gold; and a significant reduction in debt.

Stillwater Mining surged $1.47 to US$15.80 as it reported record palladium and platinum production in 2001, as well as improved earnings and revenue.

Among the remaining majors: AngloGold fell 29 to US$23.39; Gold Fields was up 56 to US$8.28; Ashanti Goldfields dropped 21 to US$4.70; Compania de Minas Buenaventura retreated 71 to US$24.54; and Freeport-McMoRan Copper & Gold‘s B shares were off a bit at US$15.36.