US stocks strengthened in the Sept. 12-16 trading week

U.S. equities posted five straight days of gains during the Sept. 12-16 trading week, buoyed by news that the European Central Bank, in coordination with other major central banks, plan to make it easier for institutions in Europe to borrow dollars. The Dow Jones Industrial Average rose 516.96 points or 4.7% to close at 11,509.09, while the S&P 500 index jumped 61.78 points or 5.4% to finish at 1,216.01, its best week since early July. The Philadelphia Gold and Silver index fell 5.65 points or 2.53%, to close at 217.56.

Kansas City-based Compass Minerals gained US$3.83 per share to close the week at US$75.05 per share following news that two of its subsidiaries, Great Salt Lake Minerals Corp. and Big Quill Resources, will increase the price of all sulfate of potash specialty products by US$30 per short ton on orders shipped on or after Oct. 1 or as contracts allow. The increase will apply to both standard and granulated products, the company reported. Rising prices for phosphate and potash also helped lift Agrium, Intrepid Potash and Mosaic. Agrium advanced US$1.43 to US$87.19, while Intrepid Potash rose US$1.04 to US$34.14 and Mosaic climbed US$1.02 to US$70.99.

Lake Victoria Mining surged 54.5% to 17¢ per share on encouraging assay results from underground sampling of artisanal shafts at its Uyowa gold project in northwestern Tanzania. Highlights included 89.60 grams gold per tonne over 0.20 metres, 68.30 grams gold over 0.32 metres, 66.70 grams gold over 0.9 metres and 57.10 grams gold over 0.25 metres. Previous exploration in 2003 by Ashanti identified four narrow zones of gold mineralization with an east-west strike length of about 300 metres across a surface width of 60 metres. Vista Gold shot up 15.4% to close at US$4.27 per share on no news. On Sept. 6, the junior unveiled an updated resource estimate for the Batman deposit at its Mt. Todd gold project in Australia. Batman’s total resource estimate is now 5.98 million ounces of measured and indicated and 2.61 million ounces of inferred.

On the negative side of the ledger, Silvercorp Metals fell 16.7% during the week to US$7.02 per share in the wake of allegations from short sellers accusing the silver producer of a “potential $1.3 billion accounting fraud.” Silvercorp has vigorously denied the allegations and on Sept. 15 acquired 3.92 million of its common shares at a cost of $31.29 million.

 

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