MINING MARKETS & INVESTMENT NEWS — U.S. MARKETS — Metal prices punish producers

The Dow Jones industrial average slid 305.86 points, or 2.8%, during the report period ended May 25, while gold continued eroding and copper resumed its downward trend.

Mining issues suffered for the week as gold hit a new low of US$270.70 on the Comex division of the New York Mercantile Exchange, and copper dropped again below 70 cents, to 67 cents per lb.

Among major golds, South Africa’s Anglogold took the honours with the largest loss for the week. It fell $1.81 to close at US$19. Meanwhile, Newmont Mining, listed on the New York Stock Exchange, tumbled $1.38 to US$18.06, and Homestake Mining hit a new low of US$7.88 per share, falling 56 cents. No better off was Battle Mountain Gold, having lost 18 cents to hit a new low of US$2.44.

Mid-size Getchell Gold, listed on the American Exchange, shed $1.57 to close at US$26.81, while Papua New Guinea’s Lihir Gold, on Nasdaq, tumbled $3.62 to US$16.38.

Phelps Dodge led the decline among copper producers, shaking off $5.62 to close at US$56. Australia’s Broken Hill Proprietary dipped $1.44 to close at US$21.31, while Cyprus Amax Minerals closed down $1.19 to US$12.75. Asarco lost 87 cents to close at US$16.75, while subsidiary Southern Peru Copper slid $1.07 to US$12.62. Rio Tinto slumped $1.07 to close at US$50.81.

Among other commodities, Apex Silver Mines closed down 37 cents to US$11.36, while De Beers Consolidated Mines was also off 37 cents to US$22.88. Platinum producer Stillwater Mining added 12 cents to finish the week at US$32.