Employment figures showing the U.S. economy added 114,000 jobs in the month of September, pushing down the unemployment rate from 8.1% to 7.8% —the lowest level since January 2009 — buoyed equities. The Dow Jones Industrial Average touched 13,661.87 on Oct. 5 — a 52-week high —and ended the week up 1.30% or 173.02 points at 13,610.15. The S&P 500 index rose 1.41% or 20.26 points to finish at 1,460.93, while the Philadelphia Gold and Silver index edged up 0.28% or 0.53 of a point to 191.53.
A positive tax ruling in Mexico sent shares of Primero Mining soaring 41.1% or US$2.15 to US$7.37 per share. Mexican tax authorities confirmed in the ruling that Primero’s Mexican subsidiary appropriately records revenue and taxes from sales under a silver purchasing agreement with Silver Wheaton at realized prices rather than spot prices effective from August 2010. Primero owns 100% of the San Dimas gold-silver mine.
Alpha Natural Resources was the most actively traded stock of the week and closed up a penny at US$6.58 per share. On Sept. 28 the metallurgical and thermal coal producer announced the pricing of 9.75% senior notes due 2018. The underwritten public offering of US$500 million should net the company about US$479.8 million after expenses. A portion of the proceeds will be used to fund the purchase of up to US$350 million of the 3.25% convertible senior notes due 2015.
Western Copper and Gold Corp. finished the week 7.8% higher at 74 cents a share after closing a private placement for 500,000 flow-through common shares at 80 cents per share raising $400,000 for exploration expenses. The Vancouver-based junior holds a 100% stake in the Casino project in the Yukon, which the company describes as the one of the world’s largest open-pittable gold, copper, silver and molybdenum deposits.
On the negative side of the ledger, Pacific Booker Minerals plunged 78.3% or US$11.95 to US$3.30 per share after the B.C. Liberal government denied an environmental assessment certificate for its wholly-owned Morrison copper-gold project, 65 km northeast of Smithers, B.C.
Mosaic Co. dropped US$2.53 a share to finish at US$55.08 after reporting first quarter fiscal 2013 earnings of US$429 million compared to US$526 million a year ago. Earnings per diluted share were US$1.01 in the quarter compared to US$1.17 last year. The year-on-year decline was largely chalked up to lower phosphate volumes and prices.
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