Newmont still volume leader

The New York Stock Exchange finished in positive territory over the report period Nov. 14-20, adding 150.43 points to close at 9,901.38.

Like last week, the big newsmaker was Newmont Mining, which was the most actively traded U.S. mining stock. Newmont was US$2.90 lower and finished at US$19.35, as investors effectively bid down the takeover price for Normandy Mining and Normandy’s largest shareholder, Franco-Nevada Mining. Newmont’s bid of 0.0385 of a share for one share of Normandy, which started with a notional cash value of A$1.70 per share, now represents about A$1.43.

Mild misery in the bullion markets was mirrored by the other gold producers. Compania de Minas Buenaventura slid US62 to US$18.23, and Homestake Mining, now moving in lockstep with the Barrick Gold merger offer, was down US48 at US$7.53 as Barrick fell US86 to US$14.52.

Renewed price strength in the white goods arrested the decline in Stillwater Mining, which finished US77 higher at US$15.72. Still, potential bidders, who had been rumoured to be circling when Stillwater was above US$30 in the early half of the year, are not looking anxious now, with predictions of lower palladium prices now out in the open.

The base metal miners fared vastly better, with Phelps Dodge vaulting US$2.89 to US$33.84 and Freeport-McMoRan Copper & Gold B-series shares ahead US33 at US$11.63. BHP Billiton was up US28 at US$10.07, Rio Tinto rose US$3.65 to US$74.40, and Anglo American added US95 to close at US$14.69.