U.S. equities move higher, Feb. 13-17

With a Greece bailout deal in the works and the U.S. economic recovery showing stronger momentum, the appetite for risk returned to U.S. equity markets during the Feb. 13-17 trading week, pushing the Dow Jones Industrial Average closer to the key 13,000 mark, a level last seen in May 2008. The Dow Jones Industrial Index closed at 12,949.87 points, up 148.64 points or 1.16%, while the S&P 500 index reached its highest level since May 2011, closing at 1,361.23 points, an increase of 18.59 points or 1.39%. The Philadelphia Gold and Silver index inched up 1.7 points to 1,723.80.

Seabridge Gold advanced US$2.43 to close at US$23.99 per share or 11.2% on no news, making it the week’s top gainer. Earlier this month the company announced that the 2011 drill campaign at its KSM project near Stewart in British Columbia increased estimated measured and indicated resources by 3.7 million ounces of gold to a total of 49 million ounces of gold and added another 0.5 million ounces of gold in the inferred category, lifting inferred resources to 14.98 million ounces of gold. The KSM project also contains measured and indicated resources of 12.7 billion pounds of copper and 261 million ounces of silver. The updated resource will be incorporated into a new preliminary feasibility study due in April 2012.

Shares of  Harry Winston Diamond Corp. climbed 15.3% or US$1.78 to US$13.38 per share. The company reported that the Diavik diamond mine had recovered 1.6 million carats from 0.6 million tonnes of processed ore during the fourth quarter of 2011 and a total of 6.7 million carats of diamonds from 2.2 million tonnes of ore processed for the full calendar year. A new life-of-mine plan for Diavik is under review by Rio Tinto.

Goldcorp shares rose US$1.22 to close at US$47.04. The company reported fourth quarter gold production of 687,900 ounces at a total cash cost of US$261 per oz., leading to record revenues of US$1.5 billion and operating cash flows before working capital changes of US$831 million. Adjusted net earnings reached US$531 million, or $0.66 per share, compared to US$431 million, or US$0.59 per share, in the fourth quarter of 2010.  

Cliffs Natural Resources tumbled US$6.55 to US$66.72 per share despite reporting full-year revenues in 2011 hit a record US$6.8 billion, up over 45% from the previous year. Full-year operating income increased to US$2.3 billion, up 85% from US$1.3 billion in 2010. Net income attributed to shareholders was US$1.6 billion, or US$11.48 per diluted share, up from US$1 billion, or US$7.49 per diluted share, in the prior year.