U.S. Markets -Jan. 26-Feb. 1

The Jan. 26-Feb. 1 reporting period drew to a close on a bleak note, with U.S. President Barrack Obama forecasting a record US$1.56 trillion budget deficit for fiscal 2010 — or 10.6% of the economy based on GDP. The budget deficit in 2009 stood at US$1.41 trillion equaling about 9.9% of GDP. Obama also laid out US$3.8 trillion in spending plans for the fiscal year to Sept. 30, 2011. In equity markets, the Dow Jones industrial average slid 8.76 points to 10,185.53, while the S&P 500 index fell 2.98 points to finish at 1,089.19.

For mining stocks, the period was marked by higher dollar losses than gains. Potash Corp. of Saskatchewan dropped US$6.47 per share to close at US$103.43 after informing the market that its sales volumes of potash last year were the lowest since it became a publicly traded company in 1989. For the full year, Potash Corp.’s earnings fell to US$987.8 million or US$3.25 per share, a steep drop from 2008’s US$3.5 billion or US$11.01 per share. For the fourth quarter, earnings stood at US$243.6 million or US80¢ per share, down from US$788 million or US$2.56 per share in the yearearlier quarter.

On the positive side of the ledger, Cabot Corp. enjoyed the largest value gain, rising US$1.71 to US$27.90 per share after declaring that it was performing at pre-downturn earnings levels despite lower sales volumes. It credited its strong financial results to maintaining unit margins through the downturn, the early delivery of restructuring savings, and continued improvement in its key markets. In the first quarter of fiscal 2010 ended Dec. 31, Cabot reported net income of US$29 million or 44¢ per share, up from US$4 million or 6¢ per share in the yearearlier quarter.

On the gold front, Allied Nevada Gold advanced 91¢ to US$13.70 per share following news of positive results from metallurgical testing of sulphide mineralization at its Hycroft mine near Winnemucca, Nev. Metallurgical testing of seven samples of sulphide material with average grades of 1.02 grams gold per tonne and 43.87 grams silver confirmed that the sulphide mineralization is amenable to conventional flotation. Recovery rates averaged 88% for gold and 85% for silver. Newmont Mining gained US$1.41 to US$45.54 on no news, while Agnico-Eagle Mines climbed 70¢ to US$53.74.

The price of gold moved from its New York close of US$1096.80 per oz. on Jan. 26 to US$1,105.60 per oz. on Feb. 1. The Amex Gold Bugs index contracted 1.86 points to 394.89.

U.S. most active issues
	VOLUME	WEEK
	(000s) HIGH	LOW	CLOSE	CHANGE
Alcoa* AA	235517 13.95	12.26	13.36	-0.03
Freeport McMo*FCX	127083 73.99	66.20	71.59	-3.01
Hecla Mining* HL	75065 5.29	4.54	5.13	-0.03
Barrick Gold* ABX	64306 36.78	34.63	36.50	+ 0.46
Goldcorp* GG	50729 36.99	33.89	35.54	-0.67
Newmont Mng* NEM	47834 45.54	42.80	45.54	+ 1.41
Silver Wheatn* SLW	41931 14.95	13.63	14.89	+ 0.16
Potash C Sask* POT	40738 112.38	98.27	103.43	-6.47
Kinross Gold* KGC	40500 17.65	16.15	16.98	-0.41
Arch Coal* ACI	38414 25.92	20.53	21.60	-3.59

U.S. greatest percentage change
		VOLUME		WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Madison Minls*	MMRSF	12	0.15	0.13	0.15	+ 36.3
Fischer-W Gld*	FWGO	155	0.06	0.05	0.06	+ 20.0
Affinity Gold*	AFYG	261	1.83	1.50	1.83	+ 18.0
Starfield Res*	SRFDF	196	0.10	0.09	0.10	+ 11.1
Crystallex In*	KRY	3711	0.33	0.25	0.32	+ 10.3
Uranium Res*	URRE	3085	0.83	0.61	0.77	+ 10.0
New Jersey Mg*	NJMC	18	0.25	0.21	0.24	+ 9.0
Allied Nevada*	ANV	469	13.70	12.47	13.70	+ 7.1
America West*	AWSR	73	0.16	0.15	0.15	+ 7.1
Legend Intl H*	LGDI	1223	1.27	1.11	1.21	+ 7.0
Habanero Res*	HBNRF	30	0.09	0.07	0.07	-22.2
Quaterra Res*	QMM	354	1.70	1.31	1.38	-21.1
Constittn Mng*	CMIN	1511	1.08	0.85	0.86	-19.6
Alberta Star *	ASXSF	628	0.17	0.14	0.14	-17.6
Tanz Roy Exp*	TRE	6908	4.79	3.42	3.91	-16.9
Tombstone Exp*	TMBXF	251	0.06	0.02	0.05	-16.6
Uranium Star*	URST	2240	0.38	0.28	0.31	-16.2
Lake Vict Mng*	LVCA	61	0.54	0.44	0.45	-15.0
Arch Coal*	ACI	38414	25.92	20.53	21.60	-14.2
DouglasLkMl*	DLKM	510	0.28	0.20	0.21	-12.5

U.S. greatest value change
WEEK
	VOLUME	CLOSE	CHANGE
Cabot Corp* CBT	5710537	27.90	+ 1.71
Newmont Mng* NEM	47833552	45.54	+ 1.41
Allied Nevada* ANV	469400	13.70	+ 0.91
Agnico-Eagle* AEM	14421152	53.74	+ 0.70
Barrick Gold* ABX	64305907	36.50	+ 0.46
Exeter Res* XRA	357000	7.43	+ 0.44
Buenaventura* BVN	6271308	32.95	+ 0.44
Keegan Res* KGN	93400	6.12	+ 0.32
Affinity Gold* AFYG	260584	1.83	+ 0.28
Pan Am Silver* PAAS	6625027	22.54	+ 0.19
Potash C Sask* POT	40738492	103.43	-6.47
Arch Coal* ACI	38414149	21.60	-3.59
Rio Tinto* RTP	4728565	206.62	-3.28
OM Group* OMG	2159149	32.99	-3.12
Freeport McMo* FCX	127082716	71.59	-3.01
Alpha Nat Res* ANR	19934228	42.51	-2.90
Soc Quim&M Ch*SQM	5134207	37.31	-2.56
Teck B* TCK	34474457	34.53	-2.53
Mosaic* MOS	25328940	56.27	-2.49
MDU Res* MDU	5537430	20.85	-2.28