U.S. equities in positive territory, Apr. 23-27

U.S. equities posted four straight days of gains during the Apr. 23-27 trading week despite lower than expected first quarter GDP growth of 2.2% (down from 3% in the fourth quarter of 2011) and renewed concerns about Spain as Standard & Poor’s cut the country’s debt rating and gave it a negative outlook. The Dow Jones Industrial Average rose 1.53% to close at 13,228.31, while the S&P 500 index climbed above the psychologically important 1,400 level, rising 1.80% to finish the week at 1,403.36. The Philadelphia Gold and Silver index crept up 1.03% to 165.81.

Strong financial results sent Agnico-Eagle Mines straight to the top of the list of percentage gainers, leaping 18.7% or US$6.21 per share to US$39.36 per share. The company reported first-quarter profit of US$78.5 million or 46¢ per share — up from US$45.3 million or 26¢ per share in the year-ago quarter. Revenue totaled US$474.1 million, up from US$418.1 million. Payable gold production in the first quarter reached 254,955 oz., compared with 252,362 oz in the first quarter of 2011, with total cash costs of US$594 per oz., up from US$531 per oz.

Aurizon Mines climbed 13.4% to US$5.49 per share on drill results at the Marban property in Quebec where it can earn up to a 65% interest. High-grade intercepts from shallow infill drilling included 20.5 grams gold per tonne over 2.0 metres at a vertical depth of 180 metres, 36.7 grams gold over 1.1 metres at a vertical depth of 155 metres, and 29.8 grams gold over 1.0 metre at a vertical depth of 65 metres.

Shares of Mosaic advanced US$1.73 per share to US$53.00 after it noted that crop nutrient markets have “strengthened significantly” based on an early and strong spring season in North America and increasing shipments to South America. Given accelerated demand, Mosaic believes its fourth quarter fiscal 2012 volumes will be in the upper end of its guidance range of 1.7 to 2.2 million tonnes of potash and 2.3 to 2.7 million tonnes of phosphates.

Intrepid Potash climbed US$1.52 to US$25.04 on news that after a three-year review, the Bureau of Land Management has approved its HB Solar Solution mine in New Mexico. Construction is now underway and Intrepid believes the mine will be one of the lower cost potash mines in North America with cash costs of about US$60-$80 per ton, and will boost the company’s potash production by about 25%. The mine has five million tonnes of proven and probable reserves and an estimated mine life of 28 years. Annual production is estimated to be 150,000 to 200,000 tonnes of potash. First production is expected in late 2013 with a ramp up to full production expected in 2015