Forest fires force temporary closure of two BC mines

Finnish mineral processing company Outotec more than doubled its profits for the first half of 2011.

December gold futures traded at a record $1,633 on Friday morning before pulling back to the $1,625 level by early afternoon lifted by 11th hour political wrangling about the US debt plan, news that Great Recession in that country was deeper than previously thought and the Euro debt crisis spreading to Spain. Silver tracked gold with September contracts adding 48 cents, or 1.2%, to trade at $40.28 an ounce early on before slipping back to below $40 by early afternoon. The S&P 500 was poised to drop for a third straight month, the longest slump since 2008.

The United States Congress still can't pass legislation to raise the nation's debt ceiling, but a Yale Law professor suggests that President Obama could sidestep lawmakers and ensure that bills keep getting paid by minting platinum coins—about $2 trillion worth. Writing for CNN, law professor Jack Balkin outlines three ways that President Obama could keep paying the bills while congress dithers.

Investors rewarded Centerra Gold on Friday after the company reported it more than doubled net profits at $71.1 million on revenues of $243.8 million, up over 60% compared to the same quarter last year and announced a special and annual dividend payment of $99.3 million. Centerra Gold, which owns gold properties in Kyrgyzstan and Mongolia and has earn-in agreements in Nevada and Turkey, added 1% by midday Friday and was one of the few gainers among precious metals miners. Sector heavyweights Goldcorp and Kinross lost over 1.5% while Barrick was also trading weaker despite a rampant gold price.

Anglo American, one of the world's largest miners, today reported strong first half growth with operating profit ahead 40% to $6bn. Chief Executive Cynthia Carroll said that investments made during the downturn would stand them in good stead in the near-term future. "We believe that the fundamentals for the mining industry are very, very strong, and therefore the longer-term outlook is extremely positive." Image by shizhao

Some 100,000 South African gold miners went on strike Thursday, but fuel workers ended a stoppage that had slowed commerce and caused panic buying.

China’s Wing Hing said on Thursday that it planned to buy up to 87% of South African gold company Taung Gold for $580-million to take advantage of the surging gold price. Gold continued to hit record highs above $1 620/oz this week as concerns over the prospect of a US debt default grew, prompting investors to buy the precious metals as a haven from risk.

Barrick, the word's number one gold miner, reported net earnings for Q2 rose 35% to $1.2 billion ($1.16 per share) from $859 million in the prior year period. Q2 adjusted net earnings increased 36% to a record $1.1 billion ($1.12 per share)1 from $824 million ($0.84 per share) in Q2 2010, reflecting higher realized gold and copper prices and higher gold sales volumes, resulting in an annualized return on equity of about 21%. The company is on track to meet its 2011 operating guidance of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce and lower expected net cash costs of $290-$320 per ounce

Comex gold futures prices are trading slightly higher Thursday morning, while silver futures are modestly lower. Some mild profit-taking pressure has surfaced in the precious metals, following their recent gains that took gold to a record high and silver to a nearly three-month high.