U.S. markets eke out small gain, Oct. 17-21

Doubts about a resolution to the euro zone crisis weighed on U.S. equities as differences between France and Germany surfaced mid-week ahead of a European Union summit on Sun. Oct. 23.The markets still managed to eke out small gains, however, on the back of corporate earnings and data showing that factory activity in the mid-Atlantic region of the U.S. has rebounded in October. The Dow Jones Industrial Average rose 1.24% or 144.3 points to 11,808.79 and the S&P 500 index edged up 1.12% or 13.67 points to finish at 1,238.25. The Philadelphia Gold and Silver index lost 12.9 points or 6.52% to end the trading week at 184.87.

Continued strike action at the Grasberg copper-gold mine in Indonesia’s eastern province of Papua continued to dog Freeport-McMoRan Copper & Gold, the second most actively traded stock. Shares of Freeport fell 19¢ to close at US$36.58. Unionized workers walked off the job on Sept. 15. In its announcement of financial results on Oct. 19, the company noted that the estimated impact of the strike on third-quarter production, including an eight-day strike in July, totaled about 70 million pounds of copper and 100,000 ounces of gold. Net income reached US$1.1 billion or US$1.10 per share in the third quarter compared with US$1.2 billion or US$1.24 per share in the third quarter of 2010. Net income for the first nine months of 2011 came in at US$3.9 billion or US$4.10 per share, up from US$2.7 billion or US$2.94 per share for the same nine-month period in 2010.

Uranium Resources surged 44.4% to US$1.30 per share on news that the Nuclear Regulatory Commission has reactivated its license to conduct in-situ (ISR) uranium mining in New Mexico. The license allows the company to produce up to 3 million pounds of uranium. The company hopes to complete a feasibility study by the end of the year on advancing its Churchrock/Crownpoint project and plans to be in production in 2013.

News that Mesabi Trust had declared a distribution of US$1.12 per unit, up from 90¢ in the year-earlier period, sent the royalty company’s shares up 15.8% or US$3.76 to close the week at US$27.55. Mesabi Trust said the jump was primarily due to higher average sales prices per ton of iron ore pellets, which contributed to increases in both the base royalty payment and the bonus royalty payment.

Mosaic posted a US$1.34 gain to US$58.45 per share. On Oct. 17 the potash producer successfully priced two series of notes. One series (US$450 million) bears an annual interest rate of 3.75% and matures in November 2021 and the other series (US$300 million) bears an interest rate of 4.875% and matures in November 2041.