Toronto Stock Exchange July 10-16

The largest-ever takeover in global mining history drove the TSX Composite Index to an all-time high during the trading period July 10-16.

On July 13, the TSX soared to 14,356 points on news of London-based Rio Tinto’s US$38.1-billion all-cash offer for Alcan, tossing a previous bid by Alcoa out of the picture. The TSX closed the period at 14,338 points, about 1% higher.

The Global Gold Index finished the period more or less where it started — a fraction of a point higher at 284.78, after reaching a high of 289 points on July 13. Gold itself rose to US$666 per oz. from US$661.25.

Meanwhile, the Capped Metals and Mining Index held strong, adding 24.54 points to close at 929.80.

The Alcan bid fuelled speculation of further consolidation in the global mining industry. Alcan shares gained the most by value, jumping $9.86 to $100.91 on a volume of 18.5 million shares traded.

Lundin Mining announced it had acquired 71% of Rio Narcea Gold Mines after increasing its friendly bid for the company in June to $5.50 per share from $5.00. Lundin’s offer of $1.04 per warrant remains the same and the offer, which was launched in April, has been extended to August 10.

Moly Mines shares rose nearly 50% to $6.01 over the period on news that the final feasibility study for the company’s Spinifex Ridge molybdenum-copper project, in Western Australia, will soon be released. The project has a measured and indicated resource of 470 million tonnes grading 0.06% molybdenum, 0.09% copper and 1.7 grams silver per tonne. Moly Mines is deciding between a mining rate of 12 million tonnes per year over 10 years, or 15 million tonnes per year for an 8-year mine life.

The first set of drill results for South American Silver’s Malku Khota silver property, in Bolivia, drove the company’s stock up almost 41.6% to $1.02 on a volume of about 2.98 million shares. The company reported a 219-metre intersection grading 75.3 grams silver per tonne, including a 37.6-metre section that averaged 282.3 grams.

News that Eldorado Gold will be forced to shut down its year-old Kisladag gold mine, in western Turkey, within the month sent the stock down 30.5% to $4.97. An environmental group is suing both Eldorado and the Turkish Environment Ministry and the mine will remain closed until a court hearing to be held in September, at the earliest.

StrataGold and Anatolia Minerals Development both lost 15.5% despite positive drill results at their respective projects. StrataGold, which slid to 49, recently reported an 85.5-metre intersection grading 5.8 grams gold per tonne at its Tassawini property in Guyana. Anatolia, which saw its shares drop to $5.83, cut 41 metres grading 4.1 grams gold per tonne near a previously drilled 23-metre intersection grading 7.2 grams gold at its Copler property, in Turkey.

Breakwater Resources — which was trading at $2.75 at the beginning of the month — closed at $3.36, for a 10 gain over the week. On July 12, the company issued a statement to say that it’s unaware of any undisclosed corporate developments that would explain the stock’s recent growth. Breakwater declared commercial production at its Langlois gold mine, in northwestern Quebec, in early July.

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