Phelps Dodge bleeds red

The world’s second-biggest copper producer, U.S.-based Phelps Dodge, was the newsmaker of the week as it posted a US$275-million loss in 2001 on revenue of US$4 billion, compared with US$29 million earned on US$4.5 billion in 2000.

Phelps pinned the blame on lower copper prices and sales, and warned that it expects to lose another US$100 million in the current quarter. The market was already thinking the worst: over the report period, shares rose 58 to US$32.

Peru’s biggest copper producer, Southern Peru Copper, fell 49 to US$10.91 in advance of reporting that net profits for 2001 were halved to US$46.6 million from US$92.9 million in 2000. The company, whose shareholders include Grupo Mexico (54%) and Phelps Dodge (14%), also blamed lower metal prices for the earnings drop.

The other base metal majors were mixed: BHP Billiton fell 35 to US$11.25 as it approved the Yandi lump iron-ore project in Australia; Freeport-McMoRan Copper & Gold‘s B shares soared $1.42 to US$15.05 and parent Rio Tinto jumped $2.89 to US$77.90; Anglo American shares were off 17 to US$16.33; and Alcoa advanced 81 to US$34.76.

The best news out of the precious-metals sector was Coeur d’Alene Mines‘ intersection of an 11.5-ft section grading over 1 oz. gold-equivalent at its Bayo gold-silver property in Chile. The results propelled Coeur’s shares 3 higher to US90.

Newmont Mining jumped $1.10 to US$21.53; AngloGold was up $1.01 to US$20.56; Gold Fields was unchanged at US$5.92; and Ashanti Goldfields rebounded 24 to US$4.04.