News

June 27, 2009

That Was The Week That Was … In Canada

By Our Canadian Correspondent

Minews. Now over to our Canadian Correspondent for a look at how the Canadian markets performed this past week.

CC. A widely anticipated profit warning from the world’s largest potash producer and a cut in copper production from Canada’s largest diversified mining company kept the mining sector in check, while the gold players benefited from a strengthening bullion price. Once all the trading was done over the past week, the TSX Ventures Exchange, home to more junior exploration companies than anywhere else in the world, had lost 0.62 per cent, while the TSX Gold Index had added 3.68 per cent.

Having announced production cutbacks due to weak demand for potash last week, the subsequent news that Potash Corp. of Saskatchewan would generate lower than expected profits in the second quarter was not much of a surprise. The world’s largest producer of potash now expects to earn US$0.70 per share in the second quarter a big drop from its earlier guidance of US$1.10 to US$1.50. Potash ended the week up C$1.76 at C$107.66.

Meanwhile, geotechnical problems at Teck Resources’ Highland Valley...