Gold weighs on miners

Denver — The Dow Jones industrial average slumped 54.1 points, or 0.5%, to close at 10,903.32 for the report period ended Feb. 13, as Comex gold, on the New York Mercantile Exchange, slid to US$260.30 — its lowest point in more than a year.

Most mining issues were off, including Newmont Mining, which fell 49 to US$14.46. Peru’s Compania de Minas Buenaventura dropped 50 to US$15.50, while South Africa’s Gold Fields sunk 22 to US$3.66 as rumours swirled about a looming takeover. However, Glamis Gold bucked the trend, climbing 13 to US$149 as the San Martin mine in Honduras reached commercial production.

Nasdaq-listed De Beers Consolidated Mines jumped another $2.56 to US$40.50 on the basis of speculation over an Anglo American buyout at US$40 per share. The South African mining giant was off 37 to US$63.38.

Comex copper held at US83 per lb., though Phelps Dodge dropped 98 to US$44.19. BHP lost $1.29 after posting 2000 earnings and buying 20% of a Brazilian iron ore miner, while Southern Peru Copper picked up 90 to close at US$15. Rio Tinto gained $1.26 to US$74.

Silver suffered a setback, falling again to nearly US$4.50 per oz. and sending Apex Silver Mines down 65 to US$8.85. Coeur d’Alene Mines slipped 20 to US$1.19 after it sold Australian gold assets for US$15.6 million. Hecla Mining dropped 15 to US70; junior Chief Consolidated Mining lost 37 to close at US$2.44; Stillwater Mining dropped $2.92 to US$33.80 as palladium dipped below US$1,000 per oz.; and Western Mining sunk 61 to US$16.