US gold producers hit

A sharp drop in gold prices dragged most southern producers to lower levels during the report period ended Sept. 16.

Newmont Mining, the world’s largest producer of the yellow metal, lost US0.74, or 1.9% of value, to finish the period at US$39.02. The major partly deflected the selloff by doing some of its own selling: two-thirds of its equity interest in Canadian major Kinross Gold was sold to a group of investment dealers, netting the company US$218 million in proceeds. Newmont also announced its tentative approval of the development of the 80%-owned Gossan Hill project in Western Australia. Resources there top 1.25 million tonnes grading 2.8 grams gold and 90 grams silver per tonne.

South African-based Durban Roodepoort Deep took a similar hit as its larger peer — at least in terms of value. The producer, which said it might only fire 2,850 employees at its North West operations in South Africa, not 4,500, slipped US6 to US$2.99.

Also down were AngloGold, off US$1 at US$38.78, Rangold Resources, off US72 at US$24.42, and Harmony Gold, off US46 at US$14.87. Bucking the trend was Ashanti Goldfields, which rose US13 to US$10.84 after CEO Sam Jonah told Reuters the government of Ghana would accept whatever decision the board makes regarding the company’s takeover by either AngloGold or Rangold Resources.

Metal conglomerate Rio Tinto showed strong gains over the period, rising US$1.29 to US$90.19. Likewise, peer Anglo American rose US16 to US$19.06, but WMC Resources slipped US18 to US$11.82.