Miners in retreat

Despite a stronger performance by base metals, the share prices of the base metal giants took a pounding during the April 23-29 report period.

Investors are concerned about base metals’ exposure to any slowdown in Asian economic growth, since China’s vast appetite for metals could be curtailed by the damaging impact of the SARS outbreak.

The world’s second-largest copper producer, Phelps Dodge, led the way down, plummetting $3.05 to US$31.60 as it reported a first-quarter loss of US$15 million (or US21 per share), compared with a US$24.8-million loss a year earlier. (Most of the improvement is attributable to an accounting change.) Thanks to higher copper prices, revenue between the quarters grew to US$978 million from US$918.5 million.

Among the other major players: Anglo American dropped 94 to US$13.74; BHP Billiton slipped 55 to US$11.31; Rio Tinto declined $2.25 to US$76.44; and Freeport-McMoRan Copper & Gold retreated 72 to US$17.46;

The week was brighter for the aluminum producers, with Alcoa easing up 3 to US$22.71 and Pechiney jumping $1.22 to US$14.22.

With gold languishing in the low US$330-per-oz. range, the gold majors were all down as momentum traders punished the stalled sector: Newmont Mining gave back $1.40 to close at US$26.34; AngloGold retreated $1.72 to US$27.94; Gold Fields crashed $1.07 to reach US$10; Durban Deep slipped 39 to US$2.25; Harmony Gold nosedived $2.24 to close at US$10.26; Royal Gold shed $1.86 to hit US$15.59; and Ashanti Goldfields was off 16 to US$5.17.