U.S. Markets (November 20, 2006)

Interest rate speculation and the impact of U.S. mid-term elections weighed heavily on the minds of investors during the Nov. 7-13 trading session, sending the Dow Jones Industrial Average up 26.33 points to 12,131.88.

In the resources sector, Companhia Vale do Rio Doce was among the most actively traded stocks, after gaining US92 to close at US$26.18. The Brazilian firm said it will issue 10 and 30-year notes to help finance its recent C$19-billion acquisition of Inco.

CVRD gained control of 86.6% of the Canadian nickel giant, after winning a lengthy battle for Inco with its C$86-per-share cash offer.

It now holds a total of 196.1 million shares, and has asked Inco to call a special shareholder meeting to help it acquire the remaining shares it doesn’t already own.

As investors await further developments, copper prices rallied this week amid speculation that the U.S. Federal Reserve will cut interest rates in a bid to revive U.S. economic growth, improving demand for metals.

The price of copper has dropped 23% since reaching a record high in May. However, talk of lower interest rates sent copper futures for March delivery up US1.1 (late in the session], or 0.3%, to US$3.12 a lb. on the Comex division of the New York Mercantile Exchange.

In the precious metals sector, Goldcorp and Meridian Gold lodged strong gains on the week after bullion climbed to a 2-month high of US$636.50 per oz. on Friday.

After recently closing its controversial US$8.6-billion acquisition of rival Glamis Gold, Goldcorp gained US$1.94 to close at US$28.10. Meanwhile, Meridian Gold rose US$1.27 to US$27.52 after tabling drill results from its Mercedes project in Sonora, Mexico.

Newmont Mining, was largely unchanged easing US32 to US$45.52. The Colorado mining giant is shuffling its executive team following the recent decision by Pierre Lassonde to step down as president of the company.

Bema Gold rose US8 to US$5.35 as company officials continue the process of selling a friendly deal that will see the Vancouver-based company being swallowed in a $3.5-billion transaction by Kinross Gold. Bema’s long-time CEO Clive Johnson described the deal as one he did not want, but could not in good conscience turn away.

U.S. most active issues

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
AuGrid*	AUGC	495288	0.00	1.0E8	0.00	0.00
Goldspring*	GSPG	45856	0.012	0.007	0.009	+0.001
Goldcorp*	GG	28104	28.67	26.00	28.10	+1.94
CVRD*	RIO	26081	28.29	25.87	26.18	-0.92
Newmont Mng*	NEM	21039	46.86	44.66	45.52	-0.32
Alcoa*	AA	19568	29.18	28.03	28.49	-0.33
Barrick Gold*	ABX	18809	30.38	28.80	29.47	-0.52
Phelps Dodge*	PD	18204	103.90	92.41	97.02	-4.71
Bema Gold*	BGO	16406	5.44	5.04	5.35	+0.08
Silverado*	SLGLF	15966	0.085	0.064	0.077	-0.003

U.S. greatest percentage change

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
Commerce Grp*	CGCO	26	0.12	0.08	0.12	+71.4
Konigsberg*	KGBC	2174	0.24	0.13	0.233	+66.4
Trend Mng*	TRDM	3990	0.144	0.055	0.125	+54.3
Equitable Mng*	EQBM	14538	0.014	0.005	0.01	+42.8
World Vent*	WVNTF	267	0.20	0.12	0.147	+34.8
Uranerz Energ*	URZ	720	3.08	2.22	2.82	+20.0
Tara Gold*	TRGD	1846	0.70	0.53	0.65	+18.1
Golden Eagle*	MYNG	3320	0.014	0.012	0.014	+16.6
Lafayette Mng*	LYMGF	521	0.10	0.06	0.07	+16.6
Great China M*	GCHA	50	0.17	0.14	0.17	+13.3
Diamond Discv*	DMDD	1463	0.012	0.007	0.008	-33.3
HE-5 Res*	HRRN	39	1.10	0.71	0.75	-31.8
Michigan Gold*	MGGV	767	0.008	0.005	0.006	-25.0
Colombia Gldf*	CGDF	521	1.50	1.21	1.21	-21.9
El Capitan Pr*	ECPN	1159	1.03	0.82	0.83	-17.8
Douglas Lk Ml*	DLKM	40	1.79	1.45	1.50	-16.2
Entree Gold*	EGI	184	1.80	1.47	1.49	-15.8
Alberta Star *	ASXSF	1204	1.93	1.58	1.61	-14.8
Rio Narcea Gd*	RNO	1508	3.04	2.26	2.37	-14.7
Homeland Pr M*	HPMEF	39	0.70	0.55	0.57	-13.6

U.S. greatest value change

		VOLUME	CLOSE	CHANGE
Goldcorp*	GG	28103800	28.10	+1.94
Meridian Gold*	MDG	3558200	27.52	+1.27
Mosaic*	MOS	6742700	20.97	+1.22
APEX Silver*	SIL	1562500	17.09	+1.21
Stillwater Mg*	SWC	3086400	12.57	+1.20
Mesabi Trust*	MSB	74700	23.22	+1.16
Silver Std Re*	SSRI	1460151	25.62	+1.04
AngloGold Ash*	AU	3278800	43.92	+0.91
Buenaventura*	BVN	1032100	27.30	+0.80
Silver Wheatn*	SLW	4145400	11.77	+0.72
Rio Tinto*	RTP	1671500	213.00	-14.19
Phelps Dodge*	PD	18204300	97.02	-4.71
Teck Comin B*	TCK	667800	71.98	-4.21
Potash C Sask*	POT	7884700	134.05	-4.05
Freeport McMo*	FCX	14207000	57.93	-3.40
BHP Billi-BHP*	BHP	10329100	40.88	-2.79
BHP Billi-BBL*	BBL	173400	37.71	-2.58
Fording C C T*	FDG	4564300	19.23	-2.34
Southern Peru*	PCU	11175500	53.53	-2.25
OM Group*	OMG	2944900	49.33	-1.73