Stockpile: Black Friday sale on mining stocks

Markets were holding their own Black Friday sales this week, as share prices of mining stocks fell further from already depressed levels.

Weak base metal and precious metals prices coupled with a continued negative sentiment globally sent share prices lower.

The FTSE Mining Index was down 6.5%, compared with the FTSE 250 which fell 4.5%.
The only stock showing gains for this year so far is Randgold Resources with a 28% increase in share price. In the last week however, the company with mines in West Africa, fell over 5%.
Central Rand Gold Ltd, down nearly 85% this year, was the best performer on the main board as its share price remained unchanged. Last Friday, the company, with gold assets near Johannesburg, released a management statement indicating that significant progress had been made in improving its understanding of operational uncertainties.

These included Acid Mine Drainage in the Central Basin; the occurrence of double voids (termed Composite Double Voids) within Central Rand Gold's current mining area; and the challenge of dilution when utilising the longhole stoping methodology.

Renewed unrest in Egypt seems to have affected the sharprice of Centamin Egypt Ltd. The company’s shares were the second worst performing in the week with a near 14% fall.
Aquarius Platinum Ltd was down the most with a 19% drop, although without any corporate news.

The AIM resource stocks also suffered this week although there were some gainers. Serabi Mining was the top performer, adding over 11%. The company released no less than three announcements this week, including drilling results from its Palito and Jardim do Ouro projects in Brazil.

Coal of Africa Ltd added to its gains on Friday after the South African coal producer signed a memorandum of understanding with an environmental coalition over the Vele coking coal project.
As part of the agreement, the coalition has agreed to stay the legal proceedings and the administrative appeals against the New Order Mining Right, the EMP, the Integrated Water Use Licence and the section 24G authorisation subject to the signature of a Memorandum of Agreement (MOA) between the Parties by 31 January 2012. The shares were up 8% for the week.