Market rally pulls up miners

U.S. stock markets made a modest gain during the report period Aug. 12-24, with the Dow Jones Industrial Average rising 1.6% to 10,098.63 points and the S&P 500 index up 1.9% at 1,096.19.

Buoyed by generally higher metal prices, both precious- and base-metal equities rode the surf of the broader market. The strength was particularly evident among the base metal producers, with Southern Peru Copper gaining US$6.30 to close at US$43, Freeport-McMoRan Copper & Gold adding US$3.18 to close at US$35.40, and Anglo American pushing US$1.38 higher to finish at US$22.71.

Big gainers among the golds included Gold Fields, which rose US$1.39 to US$12.09, and Harmony Gold Mining, which jumped US$1.47 to US$12. The other large gold miners were better as well, with Newmont Mining gaining US$2.58 to close at US$42.85, and AngloGold Ashanti picking up US$2.59 to close at US$34.59.

Among mid-tier precious metal producers, Hecla Mining was US66 higher at US$5.70, Randgold Resources was US43 better at US$8.69, and Compania de Minas Buenaventura vaulted US$1.36 to US$21.85.

The market didn’t take well to the formal offer from Coeur d’Alene Mines to take over Wheaton River Minerals. Coeur shares slumped US35 over the last two trading days to finish at US$3.55, though the stock was still up US35 over its Aug. 11 close. Coeur’s bid offers 0.796 of a Coeur share for one Wheaton share, plus a cash distribution of up to C$570 million.

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