TSX mining stocks fall

 

A major decline in mining stocks helped push the TSX Composite Index down 2.3% over the Aug. 9-13 trading period as indexes around the world dropped on news of a shaky recovery in the United States. The TSX dropped 271.72 points to close at 11,528.25.

The Capped Metals and Mining Index plunged 6.4%, or 61.8 points, to close at 898.48 while the Global Gold Index held steady at rising less than 2 points to close at 364.26.

All but one of the most actively traded stocks over the period dropped. Timininco, which produces a silicon products for the chemicals, aluminum and solar energy industries, was the most actively traded with 46.1 million shares changing hands callusing the stock go fall 9¢ to 47¢ apiece.

 Uranium One was the second most actively traded stock, and the only one on the list that saw shares rise – up 31¢ to $3.15 per share on a trading volume of 28.9 million shares. The company has increased its 2010 production guidance to 7 million lbs. uranium oxide, 4% higher than the first quarter, as a result of better than expected performance from its South Inkai uranium mine in Kazakhstan. Uranium One also decreased cash costs to US$15 per lb. sold from US$19 in the first quarter.

 Gold miner Agnico-Eagle Mines saw its shares increase the most by value over the period, rising $2.96 to close at $64.33 apiece on no news.

Agrium, one of the big three fertilizer makers in Canada, saw shares rise $1.81 to $70.07 over the period, but shares were down at press time after the company made an offer to pay $1.1 billion for the Australian wheat exporter AWB in an attempt to grow its retail business.

 Detour Gold shares rose $1.51 to $29.29 as the company completed a bought-deal public offering consisting of 12.075 million shares for a total of $298 million. The company, which plans to produce 649,000 oz. gold per year from its Detour Lake open pit project in northern Ontario over a span of 16 years at a cash cost of US$437 per oz..

 First Quantum Minerals was the top loser over the period falling $5.01 per share to $59.95 apiece after reporting a net loss of$588.2 million due to impairment and acquisition costs and an 8% drop in copper production from lower ore grades and uncertainty with its project in the Democratic Republic of Congo.

 Almaden Minerals was top gainer on a percentage basis with shares rising nearly 90%, or 89¢ to close at $1.88 apiece. The company put out its first set of drill results from the Tuligtic project in Puebla state, Mexico. Highlights include 302 metre grading 1.01 grams gold and 48 grams silver per tonne between 47.5 metres depth, intersecting multiple quartz-carbonate sulphide vein zones. Results from two more holes are on the way.