US market

The S&P 500 and Dow Jones Industrial Average erased losses for the week in the last hour of trading as better-than-expected economic data from China lifted investor sentiment. The country clocked year-on-year growth of 7.6% during the April–June quarter — above the government’s forecast of 7.5%. The news sent the Dow up 0.04%, or 4.62 points to close at 12,777.09, while the S&P 500 rose 0.16%, or 2.1 points to 1,356.78. The Philadelphia Gold and Silver Index fell 7.19 points, or 4.57%, to finish at 150.22.

Shares of Kinross Gold ended the week 14¢ higher at US$8.41 apiece as speculation intensified that it may be taken out by Barrick Gold, whose shares fell US$2.02 to close at US$34.84. Kinross’ key mines include Paracatu in Brazil, Kupol in Russia and Tasiast in Mauritania.

Mountain Province Diamonds climbed 71¢ to US$4.71 — still basking in news released earlier this month of a 78.5% increase in the estimated volume of the Tuzo kimberlite pipe, one of four known kimberlites at its 49%-owned Gahcho Kué joint-venture with De Beers in the Northwest Territories. The Tuzo Deep volume estimate was based on the pierce points from five inclined drill holes completed in April, as well as two pierce points from earlier drilling. The company reported that the drill results indicated an increase from the previous kimberlite volume estimate of 6.6 million cubic metres to 11.781 million cubic metres.

Goldcorp shares fell US$3.77 to US$33.99 after releasing gold production figures for the second quarter and guidance for 2012. The gold major produced 578,600 oz. in the second quarter, a 10% increase over the first quarter, and said it expects total cash costs for the quarter on a by-product basis of US$370 per oz. On a co-product basis, cash costs are expected to be US$620 per oz. for the second quarter, and US$635 per oz. for the first half of 2012. Given its reduced first-half production at Red Lake and expectations of lower second-half production at Penasquito, the company has revised its full-year 2012 gold production guidance to 2.35- 2.45 million oz., compared to its previous guidance of 2.6 million oz.