Miners shine in dull market

Both gold and base metal majors posted strong gains on U.S. equity markets in the report period May 19-25, even as the broader market moved sideways.

The S&P 500 index was up only 3.92 points at 1,095.41 during the period, while the Dow Jones Industrial Average was down 10.08 points at 9,958.43 — both changes making only a fraction of a percent difference week-to-week.

Firmer prices for the precious metals had their usual effect among the corresponding equities. Newmont Mining, always an indicator in the gold stocks, was up US$2.26 at US$39.80, while Stillwater Mining rode strong increases in platinum and palladium prices to a close of US$15.06, for a gain of US$1.61.

The offshore gold miners shared in the gains. Minas Buenaventura was up US$3 at US$23.35, AngloGold Ashanti posted a US$2.86 gain to close at US$34.58, and Anglo American Platinum surged US$4.75 to US$35.

There was renewed strength in the silver market, which translated into gains in the silver-sensitive equities. Coeur d’Alene was up US27 to US$4.87, while Apex Silver added US$1.91 to close at US$18.36.

The big winner among the base metal producers was Southern Peru Copper, which tacked on US$4.14 to close at US$31.80. Phelps Dodge was a large gainer as well, though its US$4.85 rise to US$68.65 didn’t match Southern Peru in percentage terms.

Rio Tinto picked up US$6.74 to finish at US$95.60 to lead the big three, but Anglo American was US$1.50 better at US$20.81, and BHP Billiton was up US87 to close at US$17. WMC Resources rose US56 to US$12.65.