U.S. markets were extremely volatile and bearish over the report period ended July 16, with the general media often using the term “bungee-jump” to describe the intra-day moves of the main market indices.
Although gold prices continued to find support in the US$314-to-$318-per-oz. range, the U.S.-listed gold majors were crushed by the broad selling pressure: Newmont Mining fell $1.39 to US$27.23; AngloGold dropped $1.44 to US$27.35; and Gold Fields declined $1.38 to US$12.40.
The major silver producers were the week’s single bright spot, as prices briefly touched US$5.10 per oz.: Coeur d’Alene rose 25 to US$2.19, while Hecla Mining was up 6 to US$4.67 on strong production numbers.
Volume leader Silverado Gold Mines, slipped 8 to US39. After many years of effort, the company will soon start mining at its Nolan alluvial gold project in Alaska.
In the base metals sector, the biggest story was WMC‘s shocking announcement that the smelter at its flagship Olympic Dam uranium-copper mine in Australia has severe technical problems which will require that the furnace be shut down and relined in 2003. WMC says the resulting lower production will hamper earnings and cash flow in the second half of 2002 and in 2003.
Alcoa plummeted $3.20 to US$28.76; Phelps Dodge dropped $2.32 to US$38.15; BHP Billiton stumbled $2.06 to US$10.54 as it successfully spun off its BHP Steel unit on the Australian Stock Exchange; Rio Tinto nosedived $6.55 to reach US$70.70; and Anglo American lost $1.85 to hit US$15.75.
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