TSX Composite higher despite mixed data

TSX Composite Index rose 161 points to finish the Aug. 23-27 period at 11,879.72. The stronger period came despite Canadian retail sales sliding and corporate profits being off for the first time in four quarters. That bad news however was buttressed by word that home prices showed a 14% year over year gain and a growing consensus that the Bank of Canada will not raise rates as much as originally expected over the coming 12 months.

Gold continued its strong run, as the yellow metal managed to gain another US$10 to finish the period at US$1,235.00. That good news helped spur gold miners as evidenced by the Global Gold Index, which was up 20 points to 394.54 for the period.

While it wasn’t the strongest period for base metal prices the Capped Metals & Mining Index still managed to carve out a modest gain of 20 points as it finished at 931.71 points. The price of copper and lead were flat for the period while the price for aluminum, nickel and zinc were all lower than where they began.

Word that Goldstone Resources had halted its drilling program at Key Lake actually had a positive effect on the company’s share price. The company said drilling had to stop after its geologists resigned in response to a requisition at a shareholders meeting. The company didn’t give any information as to why such news would send its share price up 58% to 63¢? for the period on heavier than usual volume.

The faith of HudBay Minerals in Augusta Resources sent the latter’s shareprice up 19% to $2.52 for the period. HudBay subscribed to roughly 11 million Augusta units in a private placement at a price of $2.75 per unit, securing $30 million for Augusta. The deal will give HudBay a 13.6% stake in the company on a fully diluted basis. HudBay shares were up 67¢ to $15.03 for the period.

A water use licence from the Yukon Water Board had Alexco Resource moving up the market for the period as its shares climbed 21% to finish at $4.32. The licence is for its Bellekeno mine and mill project, located within the Keno Hill Silver District. The licence is the last permit Alexco needed to eventually reach commercial production at the project. The company said it is nearing construction completion.

Securing the rights to the Real Del Limon Ejido project had Torex Gold Resources in positive territory as the company’s shares were up 19% to $1.28 for the period. The signing of the agreement was the final step in the company’s attempt to consolidate the exploration areas of the Morelos Gold Project which sits 180 km southwest of Mexico City. Torex said the agreement will allow it to conduct exploration work for one year after which time it will seek to negotiate a permanent agreement.