U.S. market slump continues, June 13-17

Anxiety about the debt-crisis in Greece and continuing worries about a market correction characterized the June 13-17 trading week, although U.S. equities performed better than they did in the week-earlier session. The Dow Jones Industrial Average inched up 52.45 points to close at 12,004.36, while the S&P 500 Index edged up 0.52 points to finish at 1,271.50. The Philadelphia Gold and Silver Index fell 3.61 points to 190.12.

Potash companies posted the biggest losses as the U.S. Senate voted to eliminate subsidies for the U.S. ethanol industry. (Corn is used to make the fuel and is a fertilizer-intensive crop.) Mosaic led the way with a drop of US$8.42 per share to US$59.32, followed by Agrium‘s US$5.61 per share loss to US$79.74. Potash Corporation of Saskatchewan slid US$4.17 to US$50.97. 

Gold Reserve surged 28.8% to US$2.99 per share on no news, prompting the company to issue a statement that it was unaware of any material corporate developments that would account for the jump in its share price. It did say that its international arbitration against Venezuela regarding “the illegal expropriation” of its Venezuelan properties was “proceeding well” and that it was “continuing to pursue the sales of equipment that was purchased for the Brisas project,” which would allow the company to work with its note holders “on a possible restructuring or retirement of the notes.”

Mag Silver added 73¢ to close the week at US$9.14 per share. Financial results for the three months ended Mar. 31 demonstrated that at the end of the first quarter Mag Silver held working capital of $37.69 million compared with $24.22 million in the year-earlier quarter, including cash on hand of  $35.46 million compared with $24.25 million in the year-earlier quarter. The company’s net loss for the three months amounted to $1.43 million compared with a net loss of $2.16 million in the first quarter of 2010.  

Alliance Resource Partners advanced 71¢ to US$69.78 per share. The coal producer confirmed its wholly owned subsidiary, Penn Ridge, has no intention to longwall mine under any part of the 400-acre Isaac Manchester farm near Avella, Pennsylvania.  “Penn Ridge has not applied for a longwall permit to mine underneath any part of the farm … and has no plans to conduct longwall mining operations underneath the site,” ARP’s management said at a news conference.