With bullion prices finding new support at around US$318 per oz., the U.S.-listed gold companies spent the report period June 12-18 consolidating at levels about 5% lower than the 52-week highs attained in May.
Over the period, Newmont Mining fell 68 to US$28.32, AngloGold rose a dime to US$29.50, Gold Fields eased off 6 to US$12.42, Harmony Gold sank 78 to US$13.60, Compania de Minas Buenaventura gained 31 to reach US$26.58, and Durban Deep was off a nickel at US$4.47.
Ashanti Goldfields slipped 7 to US$5.25 as more than 90% of its bondholders agreed to a proposed debt-for-equity swap as part of a larger financial overhaul. Under the deal, Ashanti’s bondholders would swap US$55 million in debt for shares priced at US$3.70 apiece.
Hecla Mining plummeted 53 to US$4.07 as it offered holders of its Series B preferred shares seven common shares for each preferred, or a fairly rich 35% premium over the June 12 preferred close. With the offer, Hecla hopes to stanch the outflow of US$8 million per year in dividends to the Series B holders. By accepting the offer, the preferred shareholders will receive more than twice what they would have if they’d exercised their conversion rights.
The base metal majors were mixed amid renewed weakness in base metal prices: Alcoa rebounded 62 to US$32; Phelps Dodge advanced $1.41 to US$39.39; Freeport-McMoRan Copper & Gold rose 11 to US$18.61; Anglo American lost 33 to hit US$17.70; BHP Billiton was up 15 to US$11.85; Rio Tinto gave back $2.43 to reach US$76.70; and WMC slipped $1.23 to US$20.60 as management downplayed speculation that Alcoa would launch a second takeover bid.
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