U.S. stock markets rose steadily over the reporting period May 17-23, as good macroeconomic news — an 0.5% annualized increase in the Consumer Price Index and a fall of 20,000 in jobless claims — bolstered stock prices. The Standard & Poors 500 index was up 28.17 points, or 2.4%, at 1,193.86.
Both of the mining sectors shared in the broader market’s advance, although the base metal producers seem to have felt more of a breeze behind them than the golds. Phelps Dodge, always a test of the base metal miners’ health, was up US$1.83 at US$84.20, while Freeport McMoRan Copper and Gold added US41 to finish at US$33.91.
All the Big Three picked up gains: Anglo American led the way with a rise of US$1.24 to close at US$23.74; BHP Billiton rose US43 to US$24.37; and Rio Tinto was US59 better at US$118.59.
Most of the golds moved higher, although AngloGold Ashanti retreated US24 to US$31.96. Mid-tiers like Minas Buenaventura (up US35 at US$20.60), Randgold Resources (up US11 at US$11.68) and Hecla Mining (up US12 at US$4.16) made the biggest proportional gains.
Harmony Gold’s takeover fight for Gold Fields is off, following a decision of the South African High Court that the takeover bid had lapsed last December. Although Harmony said it will appeal, the market treated both companies as though the bid was off: Harmony rose US95 to US$7.36, while Gold Fields climbed US12 to US$9.96.
DRDGold saw a big jump, US21 to US94. The company has not released any recent news, but its first-quarter earnings statement last month showed its South African business units breaking even after the closure of the company’s North West Rand operations.
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