Metal Prices, earnings rally senior board

Buoyed by stronger commodity prices, the Toronto Stock Exchange Composite Index posted an impressive gain of 199.52 points for the week July 19-25, up 2% to 10,362.55. Reflecting gains in the bullion market, the S&P-TSX Canadian Gold Index notched a 5.92 point increase to 196.75, rising off a 6-week low.

Rising 8 to 81, EuroZinc Mining was most-active among the TSX miners, with almost 11.6 million shares changing hands. The copper-zinc producer reported second-quarter figures from its Neves-Corvo mine in Portugal that showed a boost in mill-feed grades from 4.7% to 5.4% copper. Additionally, drilling on its undeveloped Zambujal orebody tied into a high-grade massive-sulphide zone returning true-width intercepts of up to 16.4 metres grading 24.8% copper and 7.8% zinc.

Aluminum giant Alcan was heavily traded over the session with more than 9.3 million shares crossing the floor. Strong prices for the light metal propelled the issue up $2.07 to $41.10.

With second-quarter production figures looming, gold producers saw mixed trading on slightly stronger metal prices. Kinross Gold traded 8.5 million shares for the week, up 14 to $7.36. Placer Dome shed 30 to close at $18 even on volume of 8.3 million. Brazilian producer Yamana Gold saw 8 million shares change hands, trading up three pennies to round out the week at $4.80. Investors in Cambior traded 7.1 million shares, pushing up the issue 11 to $2.71 per share. Low-cost producer Goldcorp grabbed 96, to finish the period at $19.50 per share on a trading tally of almost 6.5 million shares. Ghana-focused Golden Star Resources traded over 6.2 million shares, notching up 22 to $3.82 per share. Last but not least, Barrick Gold posted a gain of $1.42 per share to close at $30.09 on volume of 6.1 million.

Athabasca Basin uranium hunter UEX still garnered investor’s affection based on recent high-grade drill results from its Shea Creek project, a joint venture with Cogema. The issue traded over 7.8 million shares, grabbing 7 to close at $2.92. Major UEX shareholder and basin neighbour Cameco posted a gain of $2.17 per share, finishing the session at $59.42 on volume of 4.7 million.

Aussie-based Paladin Resources increased 19% to close at $1.57 on volume of 3.6 million. A bankable feasibility study was recently completed on its Langer Heinrich uranium project in Namibia, which is expected to commence production in late-2006.

Shares in northwestern Alberta coal producer Grande Cache Coal advanced 21% to $10.70 on volume of almost 2.5 million. A recent technical report on its No. 8 mine boosted recoverable coal reserves from 7.6 to 13.2 million tonnes.

The S&P-TSX Diversified Metals & Mining Index rallied 11.74 points, or 3.7%, to close at 328.87 for the period. Despite a strike at its Trail, B.C., lead-zinc smelter, shares of Teck Cominco surged almost $2 to close at $48.49 on volume of 3.6 million. The company posted record second-quarter net earnings of $225 million, almost doubling that of the previous year. The performance was primarily driven by higher copper, molybdenum and coal prices.

With a recent boost its second-quarter earnings estimate, Potash Corp. of Saskatchewan added $4.43 a share to round out the week at $127.01 on volume of 750,000. The world’s largest fertilizer enterprise is forecasting continued strong prices for its plant nutrient and industrial chemical products.