During the report period ended Oct. 27, the Dow Jones industrial average slowed its pace, having posted heavy gains in the previous week. The Dow slipped 139.81 points, or 1.6%, to close at 8,366.04.
Mining companies showed little life as the market absorbed third-quarter earnings statements. Cyprus Amax Minerals posted earnings of 16 cents per share, compared with 42 cents per share in the corresponding period last year. The major also announced plans to sell its coal division to furnish capital for debt reduction and possible acquisitions. Cyprus, listed on the New York Stock Exchange, dropped 25 cents to close at US$13.56 per share.
Other copper producers languished amid weak metal prices. Shares of Phelps Dodge fell $1.81 to US$55.69. Class A and B shares of Freeport-McMoRan Copper & Gold drifted down 50 cents and 82 cents, respectively, to close at US$11.19 and US$12; Australia’s Broken Hill Proprietary climbed 43 cents to US$15.31; and Southern Peru Copper jumped $2.50 to close at US$12.75. Souther Peru could give no reason for the rise in price.
Gold producers were mixed as the price of the yellow metal took a tumble. Newmont Mining gained a quarter for the week to close at US$23.06, after announcing layoffs of 150 at its Nevada operations.
Homestake Mining lost 25 cents to close at US$11.81, after reporting a net loss of US$182 million (or 86 cents per share) for the third quarter. The loss was blamed on writedowns of US$166 million, in which the company reduced to zero the carrying value of the Homestake and Mt. Charlotte mines.
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