Miners whacked in US

Energy and resource commodities have been on a tear for most of the past year, so the correction that transpired on global markets over the report period ended Feb. 13 was overdue and likely expected by the “smart money.” It was a double-whammy too, with lower oil prices triggering a big decline in energy stocks, and lower gold prices taking their toll on producers of all sizes.

Newmont Mining, one of the best barometers of gold-market sentiments because of its non-hedging policy, shed US$6.39 and fell back to US$54.09 over the trading session. Barrick Gold weathered the downdraft a tad better, posting a loss of US$2.24 to settle at US$28.07.

Silver producer Coeur d’Alene Mines slid US43 to US$4.82, reflecting silver’s ties with its more glamorous cousin.

On the junior scene, Silverado Gold Mines lost some of its gains made in recent weeks to close at US17, down from US21 a week earlier. The company’s main asset is the Nolan alluvial gold property in northern Alaska. The company’s subsidiary, Silverado Green Fuel, is working on development of an “environmentally friendly oil substitute produced from low-rank coal.”

The pundits warned that the share prices of copper producers couldn’t buck the laws of gravity forever, a no-brainer given the lofty prices for the red metal of late. Copper giant Phelps Dodge proved them right by taking a US$24.97 hit down to US$139.84. The company’s 52-week low five years ago was US$25.91.

Freeport McMoRan Copper & Gold was whacked to US$50.95, for a loss of US$11.65 over the trading session. The company produces gold and copper from its Grasberg mine in Indonesia’s Papua province.

Diversified miner Rio Tinto has been an investors’ darling for most of the year, but dropped US$15.21 to US$188.79 over the session. Five years ago, the company’s 52-week low was US$53.70.

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