Stockpile: Mining stocks down for the week

The FTSE Mining Index was down approximately 5.5% this week to Friday afternoon, underperforming the overall FTSE 250, which fell 3%.

Base metal prices, continue to decline, with copper falling further, down 6.8% in three weeks according to Bloomberg.

On the precious metals side, gold was also down in the week. Despite continued negative Eurozone sentiment, which feeds to gold’s “fear” fundamental, the price did not rise.

This week it was revealed that John Paulson, the largest investor in the SPDR Gold Trust, had reduced his gold exposure during the September quarter.

Allied Gold plc was the strongest gainer on the main board, with a gain of almost 12% over the week, although there was no corporate news behind the rise.

Only a handful of other stocks avoided a fall for the week, including UK Coal plc, Anglo Pacific Group plc and Bumi plc.

Anglo American plc fell the least of the four large diversified mining companies, with a fall of 4%. Xstrata plc fell the most with an 8% decline.

Namakwa Diamonds Ltd fell 18%, the most on the main board, but also with no new corporate news.

On AIM, Oxus Gold plc saw its suspension lifted after it filed its delayed financial results. The stock rose 65%, but remains down 73% for the year so far.

Mariana Resources Ltd was up 25% after it announced the introduction of strategic investor AngloGold Ashanti Ltd. The gold producer bought 45 million new shares in a private placement, giving it a 19.9% stake in the Argentinean gold explorer.