Miners bounce back in quiet market

U.S. stock markets rose fractionally in the trading period Feb. 14-20, with the Standard & Poor’s 500 index rising 11.71 points to 1,287.24. The broader trend concealed a generally strong showing by the resource stocks, particularly the golds.

Gold bullion prices rebounded off recent lows during the period, the London afternoon fix reaching US$554.50 per oz. on the last day, a rise of US$14.80. That drew buyers back into the golds, which had been badly beaten up the week before. Among the big golds only AngloGold Ashanti fell, to US$54.12 for a loss of US$2.67; it took a US$240-million loss in the quarter ended December 2005, thanks to a number of writedowns on assets. As well, controlling shareholder Anglo American is widely believed to be shopping around its 51% holding in AngloGold. Anglo American was up US$1.57 at US$37.06.

Newmont Mining was US$2.12 higher at US$56.21, Gold Fields improved by US$1.06 to US$22.58, and Harmony Gold Mining added US72 to finish at US$15.69. In the middle tier, Hecla Mining was down US39 at US$4.79, and there was heavy trading in DRDGold, which fell US2 to US$1.49.

The big base metal miners gained more modestly, but were all up: Phelps Dodge added US$5.21 to finish at US$145.05, Rio Tinto was US$9.04 higher at US$197.83, Companhia Vale do Rio Doce picked up US$1.38 to close at US$47.24, and BHP Billiton rose US$1.59 to US$34.56.

Silver was up US27 at US$9.49 per oz. and the silver-sensitives were all on the wave. Coeur d’Alene Mines picked up US32 to finish at US$5.14 and over on the American Exchange Apex Silver was US$2.97 better at US$18.28.