Over the report period ended March 5, another blow was struck against the image of South Africa as a serious gold-mining country: the country’s government took the unusual step of barring Durban Roodepoort Deep‘s well-respected chairman and chief executive officer, Mark Wellesley-Smith, from entering the country.
A British citizen, Wellesley-Smith had been trying to return to South Africa to engage in litigation against JCI Gold and Consolidated Gold Mines, both of which owe money to Durban Deeps. Soon after the ban, Durban Deep’s directors suspended Deputy Chairman Roger Kebble from his duties as a power struggle erupted for control of the company. Over the period, Durban Deeps sank 28 to US$2.40.
The remaining U.S.-listed gold majors showed declines: Newmont Mining eased off 3 to US$24.55; AngloGold dropped $1.08 to US$22.66; Gold Fields sank 21 to US$8.58; Harmony Gold retreated 77 to US$9.53; Ashanti Goldfields declined 45 to US$4.55; and Compania de Minas Buenaventura fell $1.09 to US$24.51;
Coeur d’Alene Mines advanced 4 to US$1.24 as it inked a deal buy the high-grade Martha silver mine in Argentina. The acquisition will boost Coeur’s silver production this year by 20% to nearly 16 million oz.
Freeport-McMoRan Copper & Gold‘s B shares were up 75 to US$15.19 as the company proposed combining its class A and B common shares into a single class on a 1-for-1 basis. Shareholders will vote on the proposal at the company’s annual meeting on May 22.
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