Mining stocks outpace Dow

There wasn’t much motion in U.S. equity markets over the report period July 28-Aug. 3 as the major indices posted only fractional gains. But the resource sector was way ahead of the broader market, with most mining equities higher.

The gold equities strengthened even as the gold price slumped in the early part of the report period, touching a low of US$386.20 per oz. in London on July 28. There were modest gains for most of the South Africans as the rand lost ground against the U.S. dollar: AngloGold Ashanti was up US$2.21 at US$32.98, Gold Fields rose US$1.23 to US$10.64, Harmony Gold gained US69 to US$10.99, and Durban Roodepoort Deeps picked up US18 to finish at US$2.55.

Newmont Mining was the most active among the gold stocks, with 14.8 million shares moving. It rose US$1.42 to US$40.37. Compania de Minas Buenaventura added US$1.09 to close at US$21.89, and Hecla Mining, which reported first-half net earnings of US$8.9 million on revenues of US$68.4 million, was US4 better at US$5.20.

White-goods prices were a little better, with platinum up US$20 per oz. over the five trading days, but palladium-weighted Stillwater Mining didn’t catch the wave, slipping US17 to US$14.06. Anglo American Platinum, however, was up US$1.25 at US$38.25. Coeur d’Alene Mines was actively traded, seeing 7.2 million shares change hands; it was US16 higher at US$3.37. The company announced it was approved for US$135 million in political-risk coverage from the Overseas Private Investment Corp.