US stocks move up during Aug 6-10 week

It was a good week for U.S. stocks. The Dow Jones Industrial Average gained 112 points to close the August 6-10 trading week at 13,207.95.

The broader S&P Index advanced 15 points to 1,405.87. The Nasdaq Composite Index climbed 53 points to 3,020.86. The spot price for gold added US$8.90 per oz. to end at US$1,620.50, helping the Philadelphia Gold and Silver Index edge up 8 points to 158.37.

Coeur d’Alene Mines was one of the many companies that posted second-quarter results during the week. On August 7, the primary silver producer reported a quarterly profit of US$23 million, or 26¢ a share, an improvement over the first quarter’s US$4 million, 4¢ a share, but down 40% from last year’s US$38.6 million, or 43¢ a share. Adjusted income came at 31¢ a share, beating analysts’ predictions of 20¢ a share.

The Idaho-based company produced 4.9 million oz. silver and 63,047 oz. gold during the quarter, resulting in US$254.5 million in sales, and US$88.4 million in operating cash flow. It expects to hit the high end of its 2012 production guidance of 18.5 to 20 million oz. silver and 210,000 to 230,000 oz. gold.

In a separate release that day, Coeur said it would acquire 1.85 million shares of Huldra Silver for $1.08 apiece, after which it would own and control 3.7 million shares or 8.8% of the Vancouver-based junior. Coeur surged 24% or US$3.82 to end at US$19.95 as 11.5 million shares changed hands.

Augusta Resource climbed 21% to US$2.47 a share after it announced that it received a draft air quality permit for its Rosemont copper-molybdenum project from the Arizona Department of Environmental Quality. The company anticipates obtaining the final air quality permit after the public comment period ends in early October.

NovaGold Resources moved up 16.5% after reporting it has started permitting the sizeable Donlin gold project in Alaska. The project is equally owned by Barrick Gold, which indicated it would continue permitting the capital-intensive project but will delay making a construction decision on it under current market conditions. NovaGold says it would take three to four years to permit Donlin, estimating its share of permitting costs at US$20 million a year. NovaGold closed at US$4.26 a share.

Randgold Resources was the week’s largest value gainer, adding US$8.78 per share to close at US$99.41. The miner posted a second-quarter profit of US$141.9 million, or US$1.28 per share, beating the earnings per share consensus of US$1.25. Production increased 27% to 210,534 oz. gold from the previous quarter, while total cash costs dropped 6% to US$703 per oz. The miner also officially opened the Gounkoto mine, representing its fourth gold mine in Mali.