Gold’s recent volatility proved to be a double-edged sword over the period ending Feb. 11, as the yellow metal tumbled more than US$20 to trade in the low US$360-per-oz. range.
The gold majors made a hasty retreat after more than two months of strong gains: Newmont Mining dropped $1.29 to US$28.50; AngloGold sank $3.10 to US$33.34; Gold Fields slumped 92 to US$12.57; Durban Deep retreated 31 to US$3.95; Harmony Gold gave back $11.55 to close at US$16.20; and Ashanti Goldfields fell 40 to US$6.10.
The U.S. silver stocks were worse off as the white metal slid 36 to US$4.57 per oz.: Coeur d’Alene Mines slipped 21 to US$1.64; Hecla Mining crashed 57 to US$4.02 after trading as high as US$5.72 in early January; Apex Silver Mines declined $1.57 to US$14.85; and Silver Standard plummeted $1.13 to US$5.05.
In the base metal camp, Anglo American has tendered its 19.9% stake in troubled Aussie nickel-laterite miner Anaconda Nickel to Matlin Patterson Global Opportunities, which launched a hostile A$450-million bid last month, offering A12 per share. Originally, Anglo had paid A$2 per share for its holdings and written off most of its A$323-million investment. To add to the humiliation, the past driving force behind Anaconda, former Chairman Andrew Forrest, also tendered his 4.5% stake to Matlin Patterson against the recommendation of the current Anaconda board. Anglo rose 8 over the period to US$14.68.
The rest of the sector was mixed: BHP Billiton advanced 19 to US$10.95; Rio Tinto rebounded 61 to US$78.65; Phelps Dodge fell 40 to US$34.60; Alcoa gained 64 to hit US$19.81; gold heavy Freeport-McMoRan Copper & Gold fell $2.16 to US$16.81; CVRD surged $1.07 to US$29.18; WMC Resources closed down 9 at US$11.01; and OM Group dropped 69 to US$7.88.
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