US stocks fairly flat in Feb 27 to March 2 period

Vancouver — U.S. markets were fairly flat in the period, despite the G20 rejecting calls to fund Euro bailout funds, the IMF warning that the global economy is still at risk of a slowdown, and both U.S. housing prices and durable goods sales coming in lower than expected. The Dow Jones Industrial Average actually managed to close over the 1,300-point threshold one day in the period and trade as high as 13,046.86 points, though it ultimately ended below it at 12,976.82 points for a 6.12-point loss. The S&P 500 continued its strong upward climb, closing up 3.84 points at 1,369.63 points to squeeze past 2011-highs and reach a level not seen since mid-2008.

Freeport-McMoRan Copper & Gold dropped US$3.31 to US$40.60 on 81.3 million shares traded as it reported continued problems at its massive Grasberg mine in Papua New Guinea. Violence at the mine between union and non-union workers forced the company to close the mine as simmering wage issues continue to hit operations. The latest uprising follows a 3-month strike that ended in mid-December, in which some 8,000 workers went on strike but 14,000 non-union workers continued working.

Fertilizer producer Agrium was the highest value gainer, climbing US$1.54 to US$85.23 after announcing it had started work on expanding capacity at its Advanced Technologies facility in New Madrid, Missouri. The company is adding 136,000 tonnes of ESN production to bring total annual capacity to 246,000 tonnes. ESN is an Agrium trademarked product, consisting of a urea granule covered by a flexible, micro-thin polymer coating that time-releases nutrients based on temperature. The company’s share price has steadily climbed from around US$65 in mid-December to its current level.

Ivanhoe Mines climbed US74¢ to US$18.25 after the company put out a feasibility study on its Kyzyl gold project in Kazakhstan and updated progress on Oyu Tolgoi. The Kyzyl study estimates probable mineral reserves of 22.2 million tonnes grading 8.06 grams gold per tonne for 5.76 million contained oz. gold and a 15-year mine life producing 337,000 oz. gold per year. The study estimates an after-tax net present value of US$878-million with a 5% discount rate based on US$1,250 per oz. gold. Meanwhile Ivanhoe reports that the first phase of the Oyu Tolgoi copper-gold mine is 73% complete, with initial production expected later this year.  The company also noted that it continues to look into selling off assets to help fund its share of Oyu Tolgoi.

Mag Silver continued its two-month climb, up US73¢ in the period to end at US$10.28 for a US$4.07 climb since mid-December. The company released no news in the period but recently released drill results from its La Esperanza project in Mexico’s Zacatecas state. Results from the drilling included hole 12-03 that hit 2.4 metres averaging 278 grams silver per tonne, 2.8% lead, and 5.8% zinc, and hole 11-02, drilled above hole 12-03, that hit 1.5 metres carrying 192 grams silver, 1.8% lead, and 5.7% zinc. In mid-December the company released a resource estimate on its 44%-owned Juanicipio project that established 6.2 million indicated tonnes grading 728 grams silver, 1.9 gram gold, 1.9% lead and 3.9% zinc and 7.1 million inferred tonnes grading 373 grams silver, 1.6 grams gold, 1.5% lead and 2.6% zinc.