Sun sets on Homestake

In its final quarterly report before being absorbed into the Barrick Gold empire in mid-December, venerable gold miner Homestake Mining announced that lower production costs allowed it to post third-quarter earnings of US$3.2 million (or US1 per share), compared with a loss of US$77.4 million (29) for the corresponding period a year ago. Over the week, the company popped up 14 to US$8.28

AngloGold reported that quarterly earnings rose 15% to US$76 million (or US36 per ADR), while gold production increased by 3% to 1.8 million oz. and total cash costs fell 5% to US$176 per oz. The company traded up $1.10 to US$16.61.

The remaining gold majors fared similarly, reflecting both solid third-quarter earnings and gold’s rebound above the US$280-per-oz. mark: Newmont Mining advanced US$1.88 to US$23.02 on news of US$21.5 million in earnings, compared with a loss of $36.5 million last year; Gold Fields rose 26 to US$4.80 after posting a profit of R203 million; Ashanti Goldfields eased up 34 to US$3.62 as it reported earnings of US$14.5 million; and Compania de Minas Buenaventura rose 31 to US$19.92.

Stillwater Mining plummeted $4.49 to US$16.34 as it posted quarterly income of US$10.3 million on revenue of US$52.9 million, compared with US$13.9 million earned on US$49.1 million a year earlier.

Weak metal prices are taking their toll on the base metal majors: Alcoa fell 58 to US$33.17; Phelps Dodge was off 14 to US$28.85; Freeport-McMoRan Copper & Gold‘s B shares traded down 28 to US$10.22; BHP Billiton was off 10 to US$9.