The quest for Australian gold producer Normandy Mining turned a corner over the Dec. 5-11 report period as Newmont Mining increased its cash component to twice that offered by rival suitor AngloGold. Investors responded poorly at first, pushing Newmont down 84 to US$18.90, though the stock had gained 39 by presstime. AngloGold also rose on the news, climbing 82 to US$17.99 over the period and an additional 31 by presstime.
Among the golds standing aside from the current takeover battle, Gold Fields slipped 6 to US$4.64, Ashanti Goldfields was down 13 to US$3.35, and Compania de Minas Buenaventura rose 61 to US$19. Homestake Mining advanced a penny to US$8.03, despite an 8 drop in Barrick Gold shares to US$15.17.
Copper producers were generally lower as the metal retraced the previous week’s gains. Phelps Dodge fell 9 to US$34.51, Freeport-McMoRan Copper & Gold‘s B shares traded down 80 to US$12.99, and Southern Peru Copper was off 5 at US$11.10.
In contrast, Stillwater Mining rebounded 1.40 to US$17.16, following the upward move in the price of the white metals.
WMC jumped 25 to US$19.55 while Alcoa climbed 48 to US$38.53. Alcoa withdrew its bid to take over WMC, and WMC plans to continue with an unbundling proposal that would see its alumina assets (a joint venture with Alcoa) split off from its base metal and industrial-mineral operations. Speculation is rife that larger rivals might make a bid for the other operations.
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