The TSX gains slightly, Aug. 8-12

The TSX Composite Index gained 3% during the Aug. 8-12 week to close up 380.03 points to 12,542.20 as investors digested mixed signals from the U.S.

The U.S., which recently had its triple-A rating stripped by Standard and Poor’s, announced strong retail sales but a lower consumer sentiment index. A preliminary reading showed the index dropped from 63.7 in July to 54.9, its lowest level since May 1980. The reading was taken before S&P lowered the country’s long-term credit rating on Aug. 5.

But considering the recent fears of a double-dip recession and growing concerns over the European government debt crisis, the reading could have been a lot worse, according to some analysts.

The Global Gold Index moved up 29.79 points to 400.73, as the price of gold rose US$82.90 since Aug. 5 to close in New York at US$1,746.30 per oz.

As a result, gold stocks saw the most value added during the week on the back of soaring gold prices.

Agnico-Eagle Mines advanced $1.77 to $56.99; Allied Nevada Gold was up $1.33 to $35.92 apiece, while Barrick Gold gained $1.03 to $45.92, all on no other news.

The Capped Diversified Metals & Mining Index also gained 19.71 points during the week to close at 1,220.79.

The biggest percent gainer was Pacific North West Capital, moving 14.8% to 31¢ as it agreed to sell Next Gen Metals its 60% earn-in option interest in Alto Venture‘s Destiny gold project in Quebec. The agreement still requires regulatory and shareholder approvals.  

Premier Gold Mines saw it shares jump 10.2% to $5.80 apiece after Goldstone Resources’ shareholders approved Premier’s previously announced acquisition. The two are joint-partners at the Hardrock gold project in Ontario. As part of the agreement, Goldstone shareholders will receive 0.16 of a Premier share plus 1¢ for each share held, and Premier will receive full control of the Hardrock project and Goldstone’s other gold properties. Premier currently owns 70% of Hardrock.

Aurizon Mines gained 9.9% after it released a mix of news to close the week at $6.06. On Aug. 9, it reported new drills results from the exploration program at the Fayolle gold deposit in Quebec. Two days later, it announced its second-quarter results, along with delaying the completion of a feasibility study on the Hosco gold deposit at its Joanna property in northwestern Quebec. The delay was due to higher than anticipated capital and operating costs.  

On strong second-quarter profits, Alamos Gold gained $1.39 to $18.20 on 1.2 million shares traded. It reported US$15.5 million in profits thanks to higher gold prices during the quarter, which offset lower production at its flagship Mulatos gold mine in Mexico. The mine produced 36,000 oz. gold, representing a 6% decrease from the same period last year.

Lundin Mining was the most actively traded stock, with 22.5 million shares changing hands. The stock gained 92¢ to close at $4.41, with speculations brewing that it may have some potential suitors looking to buy it out. BHP Billiton has been suggested as one potential shopper.