The Bank of Canada raised its benchmark rate a quarter point for the seventh time in a row, bringing the rate to 4.25% on May 24. But some market watchers believe the rate hikes may be over, and as a result, the hike didn’t help the loonie’s trading over the May 23-29 trading period — nor did a downturn in commodities earlier in the week.
But strong underlying factors for commodities prices — namely, tight supply and continued strong demand — brought metals and the TSX back up 2.7% or 305.55 points over the period to 11,845.48. The gold index rose 1.8% or 5.74 points to 308.35, while the diversified miners rose 5.1% to 520.23.
Bema Gold was the most heavily traded miner with over 35 million shares changing hands. The company announced a 15% increase in probable reserves at its Kupol project in northeastern Russia; probable reserves now stand at roughly 8 million tonnes grading 16.8 grams gold per tonne and 205 grams silver for about 4.5 million oz. gold and 54 million oz. silver. Bema’s shares were up roughly 8% on the week at $5.78.
EuroZinc Mining continued to be one of the most popular miners on the market. The Vancouver-based company’s large number of outstanding shares and continued investor interest in zinc and copper — especially that produced in politically stable regions, such as Portugal, where the company has a number of projects — has kept EuroZinc on the radar.
Aurizon Mines was the biggest percentage gainer on the week with Northgate Minerals’ announcement that it intends to take over the Vancouver-based junior. Northgate is offering Aurizon shareholders 0.741 of a Northgate share for the equivalent Aurizon share. Aurizon shares were up 41% at $3.25, while Northgate gained 3% to close at $4.18 on the week. Positive exploration results caused a spike in Northgate’s shares on May 26. The company announced recent drilling intersected 8.92 grams gold per tonne over 218 ft.
Other gainers were: Caldera Resources, up 40% at 7 and Lumina Resources, which gained over 33% to close at 95.
After being one of the biggest losers the previous week, Blue Pearl Mining corrected itself and was one of the session’s big gainers, closing up over 25% at $2.57.
On the flipside, Brazillian Diamonds came tumbling down after a big gains the week before. The Vancouver-based junior lost nearly 23% on no news, ending at 24.
Another big loser on the week was Vancouver-based Formation Capital; the company lost 18.9% after announcing it would reconfigure its cobalt project near Salmon, Idaho, to address environmental concerns over the release of tailings into nearby streams. Once developed, the project will be the only primary cobalt mine in North America.
TSX greatest percentage change
| VOLUME(000S) | HIGH | LOW | CLOSE | CHANGE | ||
| Aurizon Mines | ARZ | 21974 | 3.30 | 2.89 | 3.25 | +41.3 |
| Caldera Res | CDR | 3086 | 0.11 | 0.07 | 0.105 | +40.0 |
| Blue Pearl wt | BLE.WT | 277 | 1.93 | 1.12 | 1.93 | +38.8 |
| Lumina Res | LUR | 379 | 1.09 | 0.74 | 0.95 | +33.8 |
| HMZ Metals wt | HMZ.WT | 106 | 0.02 | 0.015 | 0.02 | +33.3 |
| Tahera Diam | TAH | 2545 | 3.05 | 2.18 | 2.90 | +28.8 |
| Blue Pearl Mng | BLE | 2787 | 2.59 | 1.72 | 2.57 | +25.9 |
| Minco Silver | MSV | 158 | 4.20 | 3.35 | 4.15 | +25.7 |
| Guyana Gldflds | GUY | 1021 | 8.15 | 6.26 | 7.93 | +23.9 |
| Capstone Gold | CS | 1473 | 1.92 | 1.48 | 1.89 | +22.7 |
| Brazilian Diam | BDY | 145 | 0.325 | 0.23 | 0.24 | -20.0 |
| Formation Cap | FCO | 2121 | 0.36 | 0.265 | 0.30 | -18.9 |
| Tiomin Res | TIO | 1797 | 0.365 | 0.265 | 0.29 | -17.1 |
| Central Asia G | CGA | 29 | 0.46 | 0.38 | 0.38 | -15.5 |
| Candente Res | DNT | 609 | 0.95 | 0.70 | 0.82 | -15.4 |
| Entree Gold | ETG | 1069 | 1.62 | 1.30 | 1.40 | -12.5 |
| Western C Coal | WTN | 417 | 2.61 | 2.23 | 2.29 | -11.9 |
| Pure Gld Mnr | PUG | 3053 | 0.085 | 0.075 | 0.075 | -11.7 |
| Pine Valley Mg | PVM | 217 | 1.45 | 1.18 | 1.26 | -11.2 |
| Teal Expl & Mg | TL | 14 | 5.20 | 4.70 | 4.75 | -10.3 |
TSX greatest value change
| VOLUME | CLOSE | CHANGE | ||
| Teck Comin B | TEK.SVB | 12843069 | 71.83 | +6.14 |
| Glamis Gold | GLG | 9523890 | 42.50 | +4.74 |
| First Quantum | FM | 2332642 | 53.85 | +4.54 |
| Lundin Mng | LUN | 338752 | 34.39 | +4.18 |
| Inmet Mining | IMN | 1501198 | 40.25 | +3.85 |
| Cameco Corp | CCO | 5084078 | 46.36 | +2.82 |
| Inco wt | N.WT | 42775 | 42.46 | +2.46 |
| Inco Ltd | N | 7861876 | 72.02 | +1.84 |
| Alcan | AL | 7183869 | 56.85 | +1.80 |
| Tenke Mining | TNK | 737795 | 14.25 | +1.75 |
| ISh COMEX G Tr | IGT | 47743 | 72.50 | -1.05 |
| Greystar Res | GSL | 281450 | 10.40 | -0.80 |
| Banro Res | BAA | 106202 | 12.00 | -0.79 |
| Central Gold-T | GTU.UN | 29436 | 26.80 | -0.70 |
| Teck Comin A | TEK.MVA | 38789 | 78.90 | -0.56 |
| Teal Expl & Mg | TL | 13600 | 4.75 | -0.55 |
| Potash Cp Sask | POT | 841345 | 102.98 | -0.41 |
| Moto Gold Mine | MGL | 984940 | 5.84 | -0.41 |
| Shore Gold | SGF | 2989389 | 5.55 | -0.37 |
| Western C Coal | WTN | 417400 | 2.29 | -0.31 |
TSX most active issues
| VOLUME(000S) | HIGH | LOW | CLOSE | CHANGE | ||
| Bema Gold | BGO | 35839 | 5.78 | 5.11 | 5.78 | +0.45 |
| EuroZinc Mng | EZM | 27718 | 2.89 | 2.29 | 2.82 | +0.40 |
| Aurizon Mines | ARZ | 21974 | 3.30 | 2.89 | 3.25 | +0.95 |
| Northgate Mnls | NGX | 19098 | 4.30 | 3.65 | 4.18 | +0.13 |
| Paladin Res | PDN | 15271 | 3.60 | 3.01 | 3.51 | -0.15 |
| Falconbridge | FAL.LV | 15159 | 56.24 | 53.10 | 55.94 | +0.56 |
| Kinross Gold | K | 14315 | 12.74 | 11.51 | 12.28 | +0.22 |
| Yamana Gold | YRI | 13653 | 11.26 | 9.65 | 11.19 | +0.88 |
| Breakwater Res | BWR | 13279 | 1.40 | 1.09 | 1.38 | +0.17 |
| Dynatec Corp | DY | 13192 | 1.4 8 |
1.34 | 1.44 | +0.04 |
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