Royal Dutch Shell’s offer to buy Shell Canada fuelled speculation of more mergers and acquisition activity in the oil sector over the Oct. 17-23 trading session, leading to a 57.61-point gain on the TSX to 12,119.15.
The rising U.S. dollar pulled the price of gold — and consequently, the gold miners’ index — downward. The index was off 1.95 points as the yellow metal fell by US$12.35 per oz. for the period.
The diversified miners’ index fared better, gaining 3% despite silver, platinum, palladium and lead all falling. Copper prices were flat for the week while nickel continued its run, finishing the period at US$15.51 per lb.
Equinox Minerals was the most actively traded miner on the board, trading roughly 47 million shares and finishing the period up 23 to $1.90. It recently announced drill results from its Ndola West prospect in Zambia, with a highlight of 64 metres grading 2.33% copper.
News that Rio Tinto had signed on to partner with Ivanhoe Mines at its massive Oyu Tolgoi copper and gold project in Mongolia, made Ivanhoe the second most popular miner over the week. The company finished the period $2.81 higher at $10.24 on roughly 42,000 shares, as the market’s confidence in Ivanhoe was bolstered by Rio Tinto’s deep pockets, engineering expertise and weight at the bargaining table. Ivanhoe is currently negotiating an investment agreement for Oyu Tolgoi with the Mongolian government.
The news also gave lift to Entre Gold’s shares. The Vancouver-based company holds the permit for the northern edge of the Hugo Dummett deposit — Oyu Tolgoi’s richest copper-gold deposit.
Western Copper’s deal to acquire Lumina Resources sent both companies to the top of the percentage gainers’ list for the period. Lumina’s shares gained over 45% to close at $1.54, while Western Copper’s were up nearly 45% at $1.58. The deal will see Western acquire all of Lumina’s shares for 26 million — a 66% premium on Lumina’s Sept. 15 share price. The companies touted the deal as a chance to form a strong Canadian-focused copper company.
Pine Valley Mining was the biggest loser of the period, dropping another 48% after a 25% loss the previous week. The Vancouver-based company finished the period at 17, as it announced it was filing for creditor protection. Pine Valley said its decision was based on continued production problems at its Willow Creek coal project, working capital shortfall and its inability to secure favourable financing. The TSX suspended trading of the company’s shares due to its poor financial situation.
Flooding at Cameco’s Cigar Lake project prompted the biggest dollar value loss for the period. The uranium giant’s shares dropped by $4.30 to close at $38.95, after the flood, caused by a rock fall at the project, in northern Saskatchewan. While production startup had been scheduled for early 2008, the company said construction would be delayed by at least a year.
TSX greatest percentage change
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| HMZ Metals wt | HMZ.WT | 300 | 0.01 | 0.005 | 0.01 | +100.0 |
| Lumina Res | LUR | 646 | 1.54 | 1.08 | 1.54 | +45.2 |
| Western Copper | WRN | 2285 | 1.58 | 1.10 | 1.58 | +44.9 |
| Entree Gold | ETG | 3772 | 1.91 | 1.50 | 1.84 | +40.4 |
| Ivanhoe Mines | IVN | 41960 | 10.85 | 9.01 | 10.24 | +37.8 |
| Yorbeau Res A | YRB.A | 486 | 0.49 | 0.32 | 0.48 | +37.1 |
| Linear Gold | LRR | 1143 | 5.40 | 3.91 | 5.00 | +36.9 |
| Uranium Prt wt | U.WT | 226 | 4.83 | 3.45 | 4.83 | +35.6 |
| Khan Res | KRI | 1293 | 2.00 | 1.37 | 1.80 | +35.3 |
| First Nickel | FNI | 5430 | 0.55 | 0.39 | 0.51 | +30.7 |
| Peregrine D wt | PGD.WT | 25 | 0.10 | 0.05 | 0.05 | -50.0 |
| Pine Valley Mg | PVM | 2644 | 0.34 | 0.145 | 0.175 | -48.5 |
| WGI Heavy Mnl | WG | 142 | 0.69 | 0.55 | 0.55 | -23.6 |
| Moneta Porcpn | ME | 94 | 0.11 | 0.095 | 0.095 | -20.8 |
| Brazilian Diam | BDY | 597 | 0.195 | 0.15 | 0.155 | -18.4 |
| Golden Str wtA | GSC.WT.A | 33 | 0.30 | 0.27 | 0.27 | -18.1 |
| Energem Res | ENM | 70 | 0.68 | 0.60 | 0.60 | -15.4 |
| General Mnrls | GNM | 19 | 1.40 | 1.25 | 1.25 | -13.7 |
| Minefinders | MFL | 3107 | 9.98 | 8.85 | 9.08 | -11.6 |
| First Metals | FMA | 88 | 0.75 | 0.70 | 0.70 | -11.3 |
TSX greatest value change
| VOLUME | CLOSE | CHANGE | ||
| Potash Cp Sask | POT | 1038060 | 129.00 | +3.42 |
| Aber Diamond | ABZ | 979957 | 41.08 | +3.31 |
| Lundin Mng | LUN | 453799 | 38.30 | +3.30 |
| Ivanhoe Mines | IVN | 41959667 | 10.24 | +2.81 |
| First Quantum | FM | 992372 | 66.00 | +2.56 |
| Energy Metals | EMC | 3433989 | 7.69 | +1.60 |
| Teck Comin B | TCK.B | 4800570 | 81.38 | +1.51 |
| Aur Res | AUR | 3664677 | 21.08 | +1.48 |
| Pan Am Silver | PAA | 420722 | 23.48 | +1.37 |
| Linear Gold | LRR | 1143052 | 5.00 | +1.35 |
| Cameco Corp | CCO | 8534605 | 38.95 | -4.30 |
| Minefinders | MFL | 3107128 | 9.08 | -1.20 |
| Newmont Mng | NMC | 110760 | 48.66 | -0.61 |
| Blue Pearl Mng | BLE | 4248608 | 6.13 | -0.57 |
| Centerra Gold | CG | 1115388 | 11.56 | -0.56 |
| Blue Pearl wt | BLE.WT | 159350 | 5.46 | -0.54 |
| Quadra Mng | QUA | 988056 | 9.95 | -0.45 |
| North Am Pall | PDL | 49941 | 8.78 | -0.39 |
| Central Fund | CEF.A | 137930 | 9.20 | -0.32 |
| Peru Copper | PCR | 89000 | 4.40 | -0.32 |
TSX most active issues
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Equinox Minls | EQN | 46801 | 1.94 | 1.68 | 1.90 | +0.23 |
| Ivanhoe Mines | IVN | 41960 | 10.85 | 9.01 | 10.24 | +2.81 |
| Bema Gold | BGO | 18863 | 5.01 | 4.67 | 4.83 | -0.12 |
| EuroZinc Mng | EZM | 18130 | 3.57 | 3.29 | 3.55 | +0.30 |
| Goldcorp | G | 18018 | 26.97 | 25.34 | 26.14 | +0.195 |
| LionOre Mng In | LIM | 17949 | 9.15 | 7.85 | 8.90 | +1.05 |
| Campbell Res | CCH | 13664 | 0.085 | 0.07 | 0.08 | +0.005 |
| Paladin Res | PDN | 11922 | 4.99 | 4.12 | 4.80 | +0.35 |
| Chariot Res | CHD | 11639 | 0.64 | 0.55 | 0.62 | +0.06 |
| Rio Narcea Gld | RNG | 10908 | 3.14 | 2.70 | 3.00 | +0.22 |
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