TSX ends flat during Oct. 22-26 week

Toronto’s resource-heavy index had a lacklustre Oct. 22-26 trading week, where upbeat economic data from the U.S. failed to propel the markets.

The S&P/TSX Composite Index lost nearly a percent or 115.7 points to end at 12,300.30. The U.S. reported its economy is expanding at a rate of 2% annually, up from 1.3% in the second quarter. While the growth is better than expected, concerns remain that it may do little to lower the unemployment rate.

During the week, the S&P/TSX Global Gold Index slipped nearly 2 points to 336.4, as the spot price of gold tumbled US$9.40 per oz. to US$1,711.10. The S&P/TSX Capped Diversified Metals dropped 13.1 points to 921.64.

Agnico-Eagle Mines was one of the few gold miners to shine. It topped the week’s largest value-gainer list, advancing $3.12 per share to $55.53 after posting record quarterly earnings of US$106.3 million, or 62¢ per share, up from a net loss of US$81.6 million or negative 48¢ a share a year ago.

 It produced 286,971 payable gold oz. at total cash costs of US$556 per oz., helped by strong performances at its Meadowbank and Kittila gold mines in Nunavut and Finland. As a result, Agnico has lifted its 2012 production guidance to 1.02 million oz. gold, up from 975,000 oz.

Global base-metal miner Inmet Mining added $1.46 to end at $50.45 apiece after sweetening an earlier $112-million bid for its Panamanian neighbour Petaquilla Minerals by 25%, after the junior rejected the initial offer tabled in early September. Inmet, which is developing the Cobre Panama project in Panama, had set a deadline of Nov. 5 to complete the deal. But on Oct. 29, Petaquilla’s board unanimously rejected the revised “hostile” offer saying it doesn’t reflect the company’s current value or growth prospects, virtually erasing the gains Inmet made in the previous week.  

Mexico-focused Torex Gold was the period’s most actively traded stock, with 19.3 million shares changing hands, closing up 6¢ at $2 per share after completing the previously announced bought deal financing. A total of 190 million units were issued at $2 apiece, for proceeds of $380 million, which included a partial exercise of the over-allotment option for 15 million units. Each unit comprises a share and a quarter warrant, where a full warrant allows a holder to buy a Torex share at $2.65 until Oct. 23, 2013.

The company will use the proceeds to develop its Morelos gold project in Mexico.

Canada’s second largest gold producer, Goldcorp, also saw heavy trading after posting a record quarterly revenue of US$1.5 billion, generating adjusted earnings of US$440 million, or 54¢ share, up from the consensus of roughly 46¢ a share. Goldcorp gained 68¢ to finish at $43.73 on 15.8 million shares traded.