U.S. markets end Oct. 24-28 week in positive territory

News that European leaders reached an agreement to increase the region’s bailout fund and convinced banks and insurers to take a 50% haircut on their Greek bonds, buoyed U.S. equity markets. Investors were also soothed with data that the U.S. economy grew at its fastest pace (2.5%) in a year in the third quarter. The Dow Jones Industrial Average gained 3.58% or 422.32 points to close the trading week at 12,231.11 while the S&P 500 index scored its fourth gain in as many weeks, climbing 3.78% or 46.84 points to 1,285.09. The Philadelphia Gold and Silver Index advanced 12.5% or 23.11 points to 207.98.

Cliffs Natural Resources surged US$12.78 to US$72.81 on news that its third quarter was the most profitable quarter in the company’s history. Revenues increased 59% over the same quarter last year reaching US$2.1 billion, while net income attributable to shareholders nearly doubled to a quarterly record of US$590 million or US$4.07 per diluted share. Operating income was US$820 million, up 110% from the year-ago quarter. The good results were driven by higher pricing and sales volumes in the company’s iron ore segments, along with incremental sales from Cliffs’ recently acquired Bloom Lake operations in Eastern Canada.

The official opening of  Randgold Resources‘ new Tongon gold mine in northern Cote d’Ivoire by President Allassane Quaterra sent the company’s shares up US$12.10 to close the week at US$112.14. The mine poured its first bar of gold a year ago on time and on budget despite unrest following the disputed outcome of the presidential election in the country at that time. The mine has been profitable from its first quarter and has since produced more than 250,000 ounces of gold and recently commissioned its hard rock crushing circuit. Tongon is Cote d’Ivoire’s largest hard-rock gold mine.

Teck Resources gained US$7.22 to US$41.81 on the back of strong third quarter results and news of a dividend increase of 33%.Teck announced on Oct. 26 that it would pay a dividend of 40¢ per share on its outstanding Class A common shares and Class B subordinate voting shares. The next day the miner reported third quarter profit attributable to shareholders of $814 million, or $1.38 per share, an increase of 158% from $316 million or 54¢ per share in the third quarter of 2010. New records were set for revenue, gross profit and cash flow and the company reported that its cash balance had grown to $4.5 billion.