TSX wrap-up: Stronger metal prices lift miners

The TSX Composite Index continued its up-and-down trend as it climbed 212 points to 12,237.75 for the April 23-27 period. The rebound came as investors balanced strong earnings reports from a group of companies against data, showing the U.S. economy grew more slowly than expected in the first quarter.

Despite volatility in the equity markets the price of gold continued to hold ground as the metal climbed US$22 to finish at US$1,664.80 per oz. That strength led investors to the companies that mine the metal as the Global Gold Index was up 6 points to 312.78 points.

The diversified miners also enjoyed a better period on the back of stronger base metal prices. The Capped Metals & Mining Index was up 35 points to 1,045.35 as the prices for copper, aluminum, nickel, tin, lead and zinc were all higher.

Agnico-Eagle Mines earned its way back into investors’ hearts. Stellar first quarter results showed the company was putting the troubles of its Goldex mine in the rear view mirror and its stock price gained 17% to finish at $38.66. Agnico stock had fallen into ill-favour last year after it announced it was suspending operations at Goldex, but the strength of its remaining five mines have more than picked up for the lost production. For the first quarter of this year, Agnico managed to produce more gold than it did for the same period last year when Goldex was in full operation. Gold production for the quarter came in at 254,955 oz. compared to 252,362 oz in the first quarter last year. Cash costs on those ounces did rise slightly to US$594 per oz from US$531 per oz. for the same period last year.

Midas Gold was another favoured choice for gold investors after the company released solid drill results. Highlight intercepts included 16.8 metres grading 1.69 grams gold and 0.91% antimony and 47.3 metres grading 1.39 grams gold and 0.09% antimony. Those assays helped lift its shares by 16% to $3.68. The results were from the Scout Prospect on its Golden Meadows Project in the Stibnite-Yellow Pine district of Idaho.

The end to a coup d’état in Mali and strong first-quarter production had Avion Gold riding high once again. The company’s shares were up 15% to 98¢ after the coup leaders were set to relinquish control to an interim government. Meanwhile Avion set a company record for gold production during the first quarter, with its Tabakoto-Segala gold mine in Mali producing 26,260 oz. of gold.

The dust had hardly settled on a proxy fight with its largest shareholder, but Baja Mining shareholders could be faced with another battle. The current management team won the last proxy fight, but only narrowly and since then Baja has suffered the resignation of four of its directors and it announced it a big funding shortfall at its flagship copper project. The news made Baja the period’s biggest loser by percentage points as its shares fell 57% to 39¢.