TSX posts strong numbers, Feb. 10-14

Upbeat trade numbers from China showing that import growth reached a six-month high in January helped ease worries about emerging markets and pushed up oil prices. Investors were also relieved when the U.S. Congress approved an increase in the debt limit through March 2015 and by comments from U.S. Federal Reserve chair Janet Yellen vowing to keep interest rates low. The S&P/TSX Composite Index rose 1.95% to 14,054.76 during the trading week, while the S&P/TSX Capped Diversified Metals and Mining Index advanced 0.15% to 832.15. The New York spot gold price closed the week US$52 higher at US$1,319.10 per oz.

Barrick Gold advanced $1.48 to $22.36 per share. The gold major reported that it lost US$2.8 billion, or US$2.61 per share, in the fourth quarter of 2013, compared with a net loss of US$3 billion, or a US$3.01-per-share loss in the year-ago quarter. The loss included US$2.8 billion in impairment charges. Revenue in the quarter dropped to US$2.9 billion from US$4.2 billion a year earlier, while adjusted net earnings came in at US$406 million, or US37¢ per share. Barrick cut its gold reserves to 104.1 million oz. gold at the end of 2013 from 140.2 million oz. gold at the end of 2012, using a gold price of US$1,100 per oz. compared to US$1,500 per oz. in 2012. For 2013, adjusted earnings dropped to US$2.51 per share from US$3.95 per share in 2012. Barrick expects to produce 6 million to 6.5 million oz. gold in 2014, down from 7.2 million oz. produced in 2013.

Shares of Augusta Resource traded higher during the week — up 41.4% to $3.55. On Feb. 9, Hudbay Minerals launched a hostile takeover bid for the company and its Rosemont copper porphyry project in Arizona. Under Hudbay’s all-stock proposal, Augusta shareholders would receive 0.315 of a Hudbay share for each Augusta share held.

Teck Resources dropped $1.06 to $26.25 per share after the company reported that its adjusted fourth-quarter and full-year profit both fell 44.5%, as lower commodity prices took a bite out of strong operational results. Canada’s largest diversified miner posted an adjusted fourth-quarter profit of $227 million, or 40¢ per share. Adjusted full-year profits were $1 billion, down from $1.8 billion in 2012. Revenue fell 11% to $2.4 billion in the last three months of 2013 and 9% to $9.4 billion for the year.

Labrador Iron Mines plunged 19.5% to 19¢ per share after the company announced that lower prices for its iron ore and higher freight rates contributed to a net loss of $31.3 million, or 25¢ per share, in the three months ended Dec. 31, 2013. The company sold 1.7 million tonnes of iron ore in 10 shipments during 2013, and ended the year with $7.6 million in cash and equivalents and a working capital deficit of $27 million.

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