MINING MARKETS & INVESTMENT NEWS — U.S. MARKETS — Low gold pulls down producers

The Dow Jones industrial average climbed 126.64 points (1.2%) to reach 10,721.63 over the report period ended June 22. But the continued strength of the American economy did nothing to stop gold’s slide, with prices reaching their lowest point in more than 20 years. The spot price on the Comex division of the New York Mercantile Exchange slumped to US$259.40 per oz., pushing producers down for yet another week.

New York-listed Newmont Mining shed 87 cents to finish the week at US$17.38, while Battle Mountain Gold lost 19 cents to set a new low of US$2.19 per share. Hecla Mining also hit a new low of US$2.25 per share, down 6 cents.

Homestake Mining lost 44 cents to close at US$7.62. Early in the week, IG Holdings offered to buy 1% of the company’s stock for US$6.88 per share. The company also reported a net loss of US$800,000 (or nil per share) for the past two months, and US$1.8 million (1 cents per share) for the past five months ended May 31.

South Africa’s Anglogold bucked the downward trend, gaining 38 cents to close at US$19.

Copper producers were also hit hard by price weakness, as the Comex spot price hovered at US66 cents per lb. Leading the losers, Phelps Dodge dropped $2.06 to close at US$59.19. Class A and B shares of Freeport-McMoRan Copper & Gold fell 87 cents and $1.37 to close at US$14.44 and US$14.94, respectively. Rio Tinto was off $2 at US$64.44.

Cyprus Amax Minerals lost 62 cents to finish the week at US$14, while Asarco dropped 37 cents to US$17.25, and its 54%-owned subsidiary Southern Peru Copper slipped 44 cents to US$12.50.