Mining Companies Down As Gold, Silver Prices Keep Falling

Aug.15, 2008 in Market Outlook

DOW JONES NEWSWIRES

With the price of gold trading below the key $800 level, and silver futures
falling to a two-year low, mining companies are getting hit in premarket trading.

Commodity futures have been easing the past month, and the past week in
particular, as the dollar has gotten off the mat and begin to reverse some of its
multi-year losses. Commodity prices typically move inverse to the dollar and have
surged this decade as the greenback weakened.

Barrick Gold Corp. (ABX) - the world’s largest gold producer - was down 1.6% to
$33.05, while No. 2 Newmont Mining Corp. (NEM) was off 1.5% to $42.25.

Anglogold Ashanti Ltd. (AU), the world’s third-largest gold producer and Africa’s
biggest, was trading down 5.2% to $26.04 as it also disclosed the production halt
at a South African mine after one worker was killed and six others injured during
a fall.

December gold futures were recently down $11.70 to $802.80 an ounce on the Comex
division of the New York Mercantile Exchange, recovering sharply from an
overnight low of $777.70, its weakest level since October.

In the silver markets, which fell for the 11th straight day in European trading,
Endeavour Silver Corp. (EXK), was down 5.1% to $2.04 while Hecla Mining Co. (HL)
dropped 2.8% to $6.60. The iShares Silver Trust (SLV), which trades similar to
stocks, but tracks the commodity as each share represents 10 ounces of silver,
slumped 6.6% to $13.14.

September silver futures were down $1.01 at $13.22 an ounce.

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