NEW YORK ( TheStreet) -- Mag Silver ( MVG) and Haynes International ( HAYN) were among the top metals and mining stocks last week.
Mag Silver, engaged in mineral acquisition, exploration, and development business, was among the major gainers past week, up 12.6%. Canaccord Genuity upgraded the company to a buy rating from a speculative buy rating. The company's cash position for the third quarter was a robust $46.5 million. Mag Silver has revised its total exploration and administration budget for 2010 from the earlier $15 million to $19.9 million, spending $13.4 million as of Sept. 30, 2010. Haynes International, producer of nickel- and cobalt-based alloys in sheet, coil, and plate forms, gained 12.2% last week. The company reported a profit of $5.5 million, or 45 cents per share, for the fourth quarter of 2010, as compared to a net loss of $3 million, or 25 cents per share, recorded a year ago. Revenue for the quarter was up 22.3% to $104.6 million. For the full year, the company's profit was $8.9 million, or 73 cents per share, as against a loss of $52.3 million, or $4.36 per share, in 2009. Haynes declared a dividend of 20 cents per share payable Dec. 15. The company believes that the uptrend in revenues, volumes, and net income will continue into 2011. Stillwater Mining ( SWC), engaged in the development, extraction, processing, refining, and marketing of platinum group metals, jumped 5.5%. The company recently announced a proposal to develop two more platinum and palladium mines, located within the existing mine permits. Initial development cost for the mines is estimated at $68 million. Besides, Stillwater is focusing on buying a mine near Marathon, Ontario for which it has received shareholders' approval for a $118 million worth deal in stock and cash. Harsco ( HSC), a multinational provider of industrial services and engineered products, rose 4.5% past week. The company recently declared a regular quarterly cash dividend of $0.205 per share payable February 2011. Meanwhile, Harsco has received two new orders worth more than $27 million - one is the company's largest ever single order for heat transfer products. Silver Wheaton ( SLW), a mining company primarily generating revenue from silver, advanced 3.2%. On November 26, BMO Capital Markets upgraded the stock from market perform to outperform by lifting its target price to $46 from the earlier $40. The company is benefiting from rising silver prices and expects to raise production by a fifth in 2011, totaling to 28 million silver equivalent ounces. Chief Executive Peter Barnes foresees silver hitting an all-time high of $50 per ounce over the next 3-4 years. Platinum Group Metals ( PLG), among major losers, fell 8%. ArcelorMittal ( MT) fell 7.2%. The company recently said it expects global steel demand to slow down to 5%-6% in 2011 from an estimated double-digit expansion in 2010. As per the World Steel Association global steel demand is seen at 5.3% in 2011, as compared to the estimated 13.1% in 2010. Aluminum producers Alumina ( AWC) and Aluminum Corporation of China ( ACH) shed 5.9% and 5%, respectively. Mechel ( MTL), an integrated mining, steel, ferroalloys, and power company, lost 3.3%. The company recently signed a memorandum of understanding with Posco ( PKX) for developing resources in Russia and a logistics route in the Far East. The agreement has four parts: resource exploitation and joint investments, ports modernization and infrastructure construction, review for construction of a steel mill to produce semi products in the mid/long-term, and promotion of products.
In trading on Friday, shares of MAG Silver Corp crossed below their 200 day moving average of $7.97, changing hands as low as $7.74 per share. MAG Silver Corp shares are currently trading off about 3% on the day.