U.S. markets backed off the summer rally during the reporting period July 30-August 5, with the Dow Jones Industrial Average sliding 168.14 points to close at 9,036.32.
It wasn’t a bad five days for the golds, although a look at the big producers wouldn’t show it. Newmont Mining was down US23 at US$35.75; the company reported second-quarter earnings of US$91 million on revenues of US$747 million. At the halfway mark of 2003, Newmont has US$208 million in earnings (US52 per share) out of US$1.5 billion in revenues. Its cash costs at the half-year averaged US$207 per oz., up from US$195 in the first half of 2002, and total costs were up in near-lockstep, rising to US$269, from US$256 in the corresponding period last year.
AngloGold was off US51 at US$32.70 and Ashanti Goldfields fell US44 to US$7.83; AngloGold delivered a formal announcement of its offer to take over Ashanti in a share trade of 26 AngloGold shares for 100 of Ashanti. The two companies are awaiting a decision from the Ghanaian government on whether it will accept the AngloGold offer for its 17% shareholding in Ashanti, and whether it will permit the merger to go ahead by voting its single-share veto in favor of the deal. Lonmin, Ashanti’s other major shareholder, announced it was on board and would tender its 28% interest. Lonmin share receipts, which trade over-the-counter in the U.S., were down US30 at US$13.70.
In the mid-tier, there was a little more joy, as Minas Buenaventura climbed US$1.08 to US$34.60, Randgold Resources shot up US$1.26 to US$20.76, and Harmony Gold picked up US16 to close at US$12.52.
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