TSX bounces around but ends week higher

In an up and down week, the TSX composite managed to rebound to end the Oct. 25-29 report period up at 12,676.24 on a modest gain of 75 points, or 0.6%. Statistics Canada reported that gross domestic product in August increased by 0.3% following a 0.1% drop in July. The Canadian dollar closed at US98.02 cents, up 0.64 of a cent on the week.

Bullion prices ended the period on a strong note, ahead US$32.50 at US$1,357.60 per ounce. Reflecting higher gold prices, the TSX Global Gold index rose 14 points, or 3.6%, to finish at 404.04. Barrick Gold was up $1.86 at $49.12, Goldcorp tacked on $2.35 to close at $45.54, Agnico-Eagle Mines jumped $6.93 to $79.10, while Eldorado Gold remained unchanged at $17.27. All reported strong third quarter results during the week.

While the spot price for copper was off 6 cents on the week at US$3.71, the Capped Metals & Mining index went the other way, adding 11 points, or 0.9%, to finish the period at 1,235.28. Shares of molybdenum companies advanced on news that China is preparing to classify the metal as a national mining resource, which could have limiting production implications. Thompson Creek Mines closed up $1.45 at $12.28 and Moly Mines added 10 cents to finish the period at $0.85.

Base metal producer Inmet Mining closed up $1.97 at $60.98 after reporting third quarter results. Earnings were 32% higher over the same period a year ago, due to higher metal prices and the ramping up of operations at its 70%-owned Las Cruces open-pit mine in Spain.

Eastern Platinum (Eastplats) was among the most active traders. It was up 25 cents at $1.86 on news that it arranged a US$100-million corporate debt financing with the UniCredit Bank of London and the Standard Bank of South Africa. Eastplats is South Africa’s sixth largest platinum groups metal producer.

Torex Gold Resources added 6 cents to finish the week off at $1.37, after announcing a new underground gold resource for the El Limon deposit at the company’s Morelos project in Mexico’s Guerrero state. With 1.6 million oz. contained in an indicated resource of 7.4 million tonnes grading 6.8 grams, Torex is expanding the prefeasibility study to assess the project’s underground mining potential.

Montreal-based Dynacor Gold Mines closed at $1.47, for a 67% gain on the week. The junior says it is on target to sell 30,000 oz. gold in 2010 from a custom milling operation in Peru. The operation purchases gold ore sourced from small and medium-size third parties. As part of its business model, cash flow generated by the milling operation is used to fund exploration on its Tumipampa copper-gold project, also in Peru.