Lower oil prices and a hurricane season that wasn’t as bad as feared kept trading activity on U.S. markets bubbling over the trading period Aug. 29-Sept. 1. The Standard & Poor’s 500 Index rose 10.23 points to close at 1,311.01 over the 4 day session, shortened by the last holiday long-weekend of summer.
Goldcorp was the most-active issue as investors digested the merits of its proposed mega-merger with Glamis Gold to create a new US$20-billion senior gold producer. The proposal has received mixed reviews from Goldcorp shareholders, mostly because the company is buying “ounces in the ground” at an unprecedented US$300 per oz. for reserves, and a staggering US$213 per oz. for resources.
Goldcorp shares shed US$2.37 to US$27.35 on the proposal, which some shareholders view as excessively dilutive with little upside. Glamis shares shot up US$7.30 to US$45.34 as giddy investors cheered an offer that effectively values Glamis at about US$8.6 billion.
Brazil’s Companhia Vale do Rio Doce got a boost of US98 to close at US$22.26 on the increased likelihood of success in its takeover bid for Inco.
Former rival Phelps Dodge climbed US$2.93 to US$90.75 as its bid for Inco disintegrated because of a lack of investor and institutional support for the notion that bigger is better, particularly in cases where merging parties are focused on different metals — in this case copper and nickel, respectively.
Exposure to a broad range of commodities gave Rio Tinto another boost to US$205.03, up US$4.60 over the session.
So far at least, senior gold producer Newmont Mining seems immune to merger mania and has even been selling some non-core assets, including its Black Gold oilsands property in Alberta for about US$280 million. The company posted net income of US$374 million for the first half of 2006, up 116% from a year earlier. Even so, its shares slipped US18 to US$51.21 over the session.
Coeur d’Alene Mines gained US49 to US$5.56 and appears to be rebounding from a minor setback triggered in part by environmental opposition to its Kensington gold project in the Alaskan Panhandle.
U.S. greatest percentage change
VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
Madison Minls* | MMRSF | 1744 | 1.124 | 0.50 | 1.05 | +105.8 |
Centrl Minera* | CENMF | 17 | 0.10 | 0.07 | 0.10 | +66.6 |
PolyMet Mng* | PLM | 779 | 3.64 | 2.68 | 3.59 | +33.9 |
Alberta Star * | ASXSF | 860 | 1.94 | 1.42 | 1.861 | +30.6 |
Cardero Res* | CDY | 157 | 1.90 | 1.53 | 1.89 | +21.9 |
Global Gold* | GBGD | 14 | 1.40 | 1.35 | 1.40 | +21.7 |
Minefinders* | MFN | 86 | 9.99 | 8.22 | 9.90 | +20.0 |
Cumberland Rs* | CLG | 458 | 5.70 | 4.41 | 5.41 | +19.6 |
Glamis Gold* | GLG | 10107 | 46.76 | 37.60 | 45.34 | +19.1 |
Cusac Gold Mn* | CUSIF | 291 | 0.265 | 0.228 | 0.265 | +17.2 |
McKenzie Bay* | MKBY | 888 | 0.137 | 0.091 | 0.11 | -20.2 |
Lafayette Mng* | LYMGF | 53 | 0.08 | 0.06 | 0.06 | -14.2 |
NT Holding* | NTHH | 44 | 2.35 | 1.85 | 2.00 | -13.0 |
Goldcorp* | GG | 19947 | 30.59 | 26.90 | 27.35 | -7.9 |
Diamond Discv* | DMDD | 1573 | 0.015 | 0.011 | 0.012 | -7.6 |
Newgold* | NGLD | 701 | 0.40 | 0.37 | 0.37 | -7.5 |
Northw Min Vt* | NWTMF | 417 | 0.455 | 0.41 | 0.42 | -6.6 |
Linux Gold* | LNXGF | 409 | 0.385 | 0.34 | 0.365 | -6.4 |
Magnus Intl R* | MGNU | 160 | 1.77 | 1.68 | 1.69 | -5.8 |
Mountain Prov* | MDM | 42 | 3.48 | 3.25 | 3.29 | -5.7 |
U.S. greatest value change
VOLUME | CLOSE | CHANGE | ||
Glamis Gold* | GLG | 10107000 | 45.34 | +7.30 |
Rio Tinto* | RTP | 685500 | 205.03 | +4.60 |
Agnico-Eagle* | AEM | 4450000 | 38.56 | +3.33 |
Lihir Gold* | LIHRY | 91519 | 47.58 | +3.28 |
Silver Std Re* | SSRI | 1901843 | 25.92 | +3.20 |
Phelps Dodge* | PD | 7041600 | 90.75 | +2.93 |
Freeport McMo* | FCX | 6466300 | 59.36 | +2.77 |
Meridian Gold* | MDG | 2858800 | 29.73 | +2.58 |
Cameco Corp* | CCJ | 3901300 | 41.73 | +2.46 |
Southern Peru* | PCU | 2144300 | 93.10 | +2.34 |
Goldcorp* | GG | 19947200 | 27.35 | -2.37 |
CONSOL Energy* | CNX | 5577200 | 37.07 | -1.20 |
Teck Comin B* | TCK | 155700 | 67.30 | -1.08 |
Arch Coal* | ACI | 7052300 | 33.65 | -0.55 |
Fording C C T* | FDG | 867300 | 30.20 | -0.53 |
Peabody Enrgy* | BTU | 10059500 | 44.70 | -0.49 |
Foundatn Coal* | FCL | 1904500 | 36.17 | -0.48 |
MDU Res* | MDU | 1740200 | 24.53 | -0.42 |
US Gold* | USGL | 2480179 | 6.39 | -0.36 |
Potash C Sask* | POT | 1250900 | 97.65 | -0.30 |
U.S. most active issues
VOLUME (000s) | HIGH | LOW | CLOSE | CHANGE | ||
Goldcorp* | GG | 19947 | 30.59 | 26.90 | 27.35 | -2.37 |
Goldspring* | GSPG | 19301 | 0.006 | 0.005 | 0.005 | 0.00 |
CVRD* | RIO | 18351 | 22.31 | 21.03 | 22.26 | +0.98 |
Equitable Mng* | EQBM | 13140 | 0.012 | 0.009 | 0.01 | +0.001 |
Newmont Mng* | NEM | 12823 | 51.98 | 50.36 | 51.21 | -0.18 |
Coeur d Alene* | CDE | 11583 | 5.60 | 4.95 | 5.56 | +0.49 |
Alcoa* | AA | 11499 | 29.28 | 28.35 | 29.01 | +0.16 |
Silverado* | SLGLF | 11128 | 0.063 | 0.058 | 0.06 | -0.002 |
Glamis Gold* | GLG | 10107 | 46.76 | 37.60 | 45.34 | +7.30 |
Peabody Enrgy* | BTU | 10060 | 45.35 | 42.80 | 44.70 | -0.49 |
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