rI at the close, April 27, 2012
The Toronto stock market ended the week up almost 1% on a handful of solid earnings reports and in spite of slowing U.S. economic growth. The S&P TSX Composite Index rallied in afternoon trading, gaining 92 points, or 0.8% to close at 12237.75 with volume at 184 million shares traded.
Most of the TSX’s sub-sectors were higher, including materials, utilities and consumer staples.
Mining stocks advanced paced by Agnico-Eagle Mines Ltd. which announced higher first quarter profits. Agnico-Eagle’s (TSX:AEM) quarterly net income of $78.5-million was up from $45.3-million during the same period a year ago, mostly due to a 20% higher realized gold price. The company also stated that earnings were “partly offset” by lower byproduct metal prices. The miner produced more gold last quarter than the same period last year.
Other gold stocks rose, including heavily traded Kinross Gold (TSX:K), Eldorado (TSX:ELD) and Iamgold Corp. (TSX:IMG).
Mid-tier Canadian gold producer Iamgold Corp. is now a major producer with its acquisition of a little-known Ontario exploration company, Trelawney Mining and Exploration. (TSX:TRR) for $608 million. Iamgold is in diversifying away from its Africa-centric focus and attempting to double production within 5 years.
Teck Resources (TSX:TCK.B) also deserves mention. The company reported first-quarter profit (adjusted) up 12% from the same period a year ago. This in addition to record first quarter revenues of $2.5 billion. The company’s CEO Don Lindsay reiterates that talk of a Chinese slowdown is overstated. His shareholders may tend to agree.
Gold itself climbed 0.26% or $4.30 to $1,665 a troy ounce.
Copper prices settled at their highest level in more than three weeks as gains in equity markets, a weaker US dollar and potential for additional monetary stimulus stoked investor appetite for the metal.
Copper for May delivery climbed to $3.82 per pound (up 1.4%) on the Comex. This was the fourth consecutive day of gains.
This positive end to the week is set to a less rosy backdrop. The U.S. economy grew more slowly in the first three months of this year in spite of consumer spending accelerating to an annual rate of 2.9 per cent in the first quarter. Governments spent less and investment spending by businesses was clawed back.
The result suggests that the US economy will continue to expand as it has, slowly but steadily. (Many in Europe are green with envy. US dollar green.)
The sober news had little effect on the metals and miners.
Top Gainers in TSX
Cline Mining Corporation CMK:TSX 0.12 (12.90%)
Oracle Mining Corp. OMN:TSX 0.14 (10.85%)
Orocobre Limited ORL:TSX 0.16 (10.39%)
Intrepid Mines Limited IAU:TSX 0.08 (10.26%)
Agnico-Eagle Mines Limited AEM:TSX 3.40 (9.64%)
Top Gainers in TSX Venture
Sanatana Resources Inc. STA:TSX VENTURE 0.11 (52.38%)
Trelawney Mining and Exploration Inc. TRR:TSX VENTURE 0.95 (40.95%)
Uravan Minerals Inc UVN:TSX VENTURE 0.05 (38.46%)
Citation Resources Inc CTT:TSX VENTURE 0.04 (36.36%)
Gold Mountain Mining Corporation / GUM:TSX VENTURE 0.10 (35.71%)
Top Losers in TSX Venture
Nubian Resources Ltd. NBR:TSX VENTURE 0.07 (30.23%)
Valhalla Resources Ltd. VH:TSX VENTURE 0.03 (23.08%)
Rare Earth Industries Ltd. RND:TSX VENTURE 0.03 (22.73%)
Rome Resources Inc RMR:TSX VENTURE 0.04 (21.87%)
Belmont Resources BEA:TSX VENTURE 0.03 (20.00%)