Majors sink with Metal Prices

An easing of base and precious metal prices during the week before Christmas resulted in a broad decline in producers stocks.

Southern Peru Copper was off 14 to US$11.16 as it placed US$73 million worth of 10-year bonds at the London Interbank Offered Rate plus 3%. The bond issue was less than the US$100 million sought, owing to low copper prices and the financial woes at Grupo Mexico, which owns 54.2% of Southern Peru. Grupo Mexico has announced it would cut production and lay off up to 3,000 workers.

Among the remaining majors: BHP Billiton fell 16 to US$10.34; Phelps Dodge dropped $1.47 to US$31.53; Rio Tinto declined $2.95 to US$73.85; Anglo American was off 72 to US$14.86; WMC shed 48 to reach US$19.07; and Freeport-McMoRan Copper & Gold’s B shares traded up 4 to US$13.15;

Alcoa plummeted $2.74 to US$34.92 as its Canadian competitor, Alcan, announced the closures of its foil plants in Toronto and St-Laurent, Que., a packaging plant in Toronto, and a food-flexible plant in Carson, Calif.

Gold stocks pulled back somewhat after a short rally triggered by gold’s 6-day advance from the low US$270s to the upper US$270s per oz.: Newmont Mining dropped 58 to US$19.51; AngloGold fell 86 to US$18.41; Gold Fields slipped 31 to US$4.91; Ashanti Goldfields was off a nickel to US$3.79; Compania de Minas Buenaventura was up only 2 to US$19.76; and Harmony Gold fell 10 to US$6.84.

Platinum producer Stillwater Mining dropped 39 to US$17.56 while silver miner Coeur d’Alene Mines fell 4 to US73.