U.S. Markets – May 19-22

Nobel Prize-winning economist Paul Krugman told a Megatrends economic conference in the United Arab Emirates over the Memorial Day-shortened May 19-22 reporting period that he believes the world economy has avoided catastrophe. However, he noted that there was a big difference between stabilizing and recovering.

North Korea conducted a nuclear test, detonating a bomb underground before firing a few short-range missiles during the week. At the same time, markets in the United States retreated — the Dow Jones Industrial Average fell 2.7% to 8,277 points and the S&P 500 index dropped 2.4% to 887 points. But the Conference Board’s Consumer Confidence Index reached its highest level since September. The index, which can indicate how likely consumers are to spend, including on major purchases like cars and homes, is now up to 54.9 points from 40.8 in April. It was at 61.4 points in September.

But consumer demand hasn’t helped out the mining scene just yet. Alcoa was the volume leader over the reporting period with twice as many shares changing hands over the next most active stock. Alcoa shares slipped US86¢ to US$8.86 apiece on volume of 133 million shares. The company has now cut back on primary aluminum production at its three smelters in Spain by 18%, in line with other reductions it has already made.

Aluminum Corp. of China, or Chinalco, slid 7.8% to close at US$22.73 per share as opposition to a US$19.5-billion investment in Rio Tinto continues. Rio Tinto shares rose US$5.70 to US$173.84 apiece as it waits for the Australian treasurer to approve the deal. Australia’s Foreign Investment Review board is studying the impact the transaction would have on competition and national security. The original deal would see Chinalco up its stake in Rio to 18%, gaining interests in key mining projects. The Australian newspaper reported that Chinalco might be willing to accept a maximum of a 15% interest with more restricted access to marketing and management arrangements.

Alexco Resource shares jumped 46% to $1.97 on a trading volume of 1.9 million shares, following news of high-grade silver intercepts at the Bellekeno mine, in the Yukon.

U. S. most active issues
	VOLUME	WEEK
	(000s) HIGH	LOW	CLOSE	CHANGE
Alcoa* AA	133412 10.23	8.83	8.86	-0.63
Golden Eagle* MYNG	60460 0.00	1.0E8	0.00	0.00
CoeurdAlene* CDE	54854 1.59	1.36	1.40	+ 0.03
Freeport McMo*FCX	51577 52.35	47.90	48.34	-0.33
Barrick Gold* ABX	47968 38.47	33.01	38.00	+ 4.53
PotashCSask* POT	44067118.32	107.25	114.50	+ 3.04
Goldcorp* GG	40066 38.22	33.28	37.40	+ 3.88
Mosaic* MOS	39404 59.34	52.40	55.36	+ 0.36
Teck B* TCK	35356 14.45	12.98	14.20	+ 0.79
Vale* VALE	30666 20.51	18.23	18.72	-0.10

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Golden Phoen*	GPXM	7211	0.05	0.01	0.04	+100.0
NWT Uranium*	NWURF	115	0.14	0.07	0.14	+ 75.0
Uranium Star*	URST	1729	0.15	0.07	0.15	+ 66.6
Alexco Res*	AXU	1870	1.97	1.35	1.97	+ 45.9
Solitario Res*	XPL	132	1.87	1.33	1.85	+ 33.0
Argentex Mng*	AGXM	374	0.63	0.46	0.60	+ 30.4
Elray Res*	ELRA	252	0.40	0.28	0.40	+ 29.0
First Majestc*	FRMSF	421	2.29	1.80	2.27	+ 26.1
Uranium Ener*	UEC	1726	1.84	1.30	1.66	+ 25.7
Cream Mnrls*	CRMXF	36	0.10	0.05	0.10	+ 25.0
Commerce Grp*	CGCO	14	0.15	0.05	0.12	-20.0
Madison Minls*	MMRSF	82	0.10	0.07	0.09	-18.1
El Capitan Pr*	ECPN	762	0.08	0.04	0.06	-14.2
Bullion Monar*	BULM	173	0.40	0.28	0.34	-12.8
US Antimony*	UAMY	16	0.40	0.35	0.35	-12.5
Cardero Res*	CDY	3655	1.19	0.80	1.07	-10.0
Tri-Valley*	TIV	318	1.25	1.10	1.11	-9.7
AlumCpChina*	ACH	1364	25.36	22.54	22.73	-7.8
Santa Fe Gold*	SFEG	244	1.18	1.07	1.09	-7.6
Gold Reserve*	GRZ	402	0.70	0.63	0.63	-7.3

U. S. greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Randgold Res*	GOLD	7986579	66.74	+ 6.56
ASA (Bermuda)*	ASA	174800	63.58	+ 5.82
Rio Tinto*	RTP	4630982	173.84	+ 5.70
Agnico-Eagle*	AEM	15552005	57.81	+ 5.15
Newmont Mng*	NEM	29011916	47.04	+ 4.65
Barrick Gold*	ABX	47967883	38.00	+ 4.53
Royal Gold*	RGLD	4732614	44.26	+ 4.49
Goldcorp*	GG	40066234	37.40	+ 3.88
Seabridge Gld*	SA	2377644	28.72	+ 3.77
Buenaventura*	BVN	5257354	28.70	+ 3.56
AlumCpChina*	ACH	1363500	22.73	-1.93
OM Group*	OMG	148107 1	25.34	-1.44
Foundatn Coal*	FCL	8226919	27.33	-1.30
Alpha Nat Res*	ANR	16412407	25.85	-1.29
Agrium*	AGU	3634400	50.39	-0.82
Massey Energy*	MEE	25141904	19.70	-0.80
Cabot Corp*	CBT	1476080	16.50	-0.64
Alcoa*	AA	133411942	8.86	-0.63
Westmoreland*	WLB	99559	7.76	-0.49
Ivanhoe Mines*	IVN	6230782	5.83	-0.35