Toronto Stock Exchange
The TSX composite index rose 200.65 points in the Feb. 28 to March 4 period to recover from its late February dip and end at 14,252.77 points. The capped metals and mining index managed to gain 25.71 points to end at 1,463.86, its first period gains since falling from a near 1,600-point high in early February. The overall gains led to 46 TSX-listed companies hitting 52-week highs while 11 hit new lows.
Canada Lithium had a hectic week after announcing it had arranged for an independent review of the resource estimate for its Quebec Lithium project. The external review was prompted by an internal review that showed an apparent reduction in all resource categories compared with the compliant resource. The company halted trading on Feb. 28 to announce the news while trading at $1.35 and its share price dropped 63¢ over two days once trading resumed. The company’s share price recovered somewhat to end at 99¢ after it issued a second, more detailed release. All the attention had the company easily becoming the most-traded company with 77.6 million shares changing hands. In January Canada Lithium completed a $110-million financing at $1.50.
Lundin Mining and Equinox Minerals took second and third place in trading volumes after Equinox made its surprise bid for Lundin, likely disrupting the proposed Lundin-Inmet Mining merger already in the works. Lundin saw 61.6 million shares traded while Equinox came in at 52.2 million. The market responded by boosting Lundin’s share price by $1.45 and dropping Equinox by 51¢ to $5.76. Equinox is offering $8.10 in cash or 1.2903 Equinox shares plus a penny for each Lundin share for a 26% premium, while the Lundin-Inmet is as an all-share merger of equals with no premium.
In another snag for Inmet, the company dropped $5.12 on the last day of the period or $3.30 over the whole period to end at $64 after news that the Panamanian government would be repealing the recently enacted Law 8. The law, withdraw after significant opposition, modified the country’s mining code. The company made assurances that its sizable Cobre Panama copper-gold-moly project falls under Law 9 and is therefore not affected by the repeal. Law 8, however, deals with foreign-government ownership of Panamanian mining concessions, which could affect Inmet’s plans to have Singapore’s Temasek and Korea Resources help fund the US$4.3 billion project. Inmet stated that it is seeking clarification on the matter and has alternative funding options.
Coeur d’Alene Mines gained $6.56 to end at $33.67 after reporting a record quarter and a positive 2011 outlook. The company reported a 75% increase in metal sales for the quarter to US$208 million and a 72% increase in overall 2010 sales to US$515 million. Coeur had a net loss of US$91.3 million in 2010 and US$9.9 million in the fourth quarter, while adjusted earnings were US$34.3 million for the year and US$49.9 million for the quarter.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Canada LithiumCLQ775751.370.720.99-0.34
Lundin MngLUN615517.967.597.90+1.45
Equinox MinlsEQN521896.005.695.76-0.51
Crocodile GoldCRK418191.240.961.00-0.28
Kinross GoldK3312715.6714.6215.18-0.50
Eastern PlatinELR211481.631.541.60+0.02
Uranium OneUUU209846.596.236.45+0.25
MagIndustriesMAA207530.200.180.190.00
Great PantherGPR178364.623.514.39+0.99
Romarco MnrlsR168212.522.232.29-0.12
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Silver Bear RsSBR20710.970.580.97+56.4
Dejour EnterpDEJ33100.510.310.47+51.6
CIC EnergyELC18935.404.205.40+32.3
Great PantherGPR178364.623.514.39+29.1
Endeavr SilverEDR35769.047.009.00+28.2
Metalline MngMMZ13601.341.041.32+28.1
Pure NickelNIC13400.200.160.19+26.6
Pretium ResPVG134113.5010.4013.20+25.7
Coeur d AleneCDM34534.3927.7833.67+24.2
Lundin MngLUN615517.967.597.90+22.4
Adanac MolyAUA38527.550.052.26-72.6
Canada LithiumCLQ775751.370.720.99-25.5
Crocodile GoldCRK418191.240.961.00-21.8
Energy FuelsEFR52171.250.961.00-20.0
Formation MtlsFCO32631.681.271.31-19.6
Greystar ResGSL20123.983.173.21-15.5
Contl PreciousCZQ4970.740.630.64-14.6
Jayden ResJDN8300.310.250.25-13.7
Excellon ResEXN40751.010.860.88-12.0
Powertech UranPWE19050.510.410.44-12.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
First QuantumFM3207946123.94+7.54
Coeur d AleneCDM34541133.67+6.56
Labdr I-Ore RoLIF_U22029977.10+6.05
Silver WheatonSLW1292523543.64+3.78
Allied NevadaANV75242032.96+3.50
Tahoe ResTHO345276618.82+3.19
Major DrillingMDI61177946.65+2.98
Pretium ResPVG134069213.20+2.70
GoldcorpG1622701648.70+2.70
Silver Std ResSSO110394328.70+2.62
Adanac MolyAUA38518022.26-5.99
Inmet MiningIMN376373364.00-3.30
SemafoSMF153174079.30-1.03
Cameco CorpCCO559461239.48-0.78
Centerra GoldCG252287617.78-0.66
Thompson CreekTCM508630212.75-0.59
Greystar ResGSL20123783.21-0.59
Equinox MinlsEQN521885105.76-0.51
Kinross GoldK3312714215.18-0.50
Imperial MetalIII16955823.39-0.48
TSX Venture Exchange
Continued unrest in the Middle East and rising commodity prices helped the S&P-TSX Venture composite index up 64.21 points between Feb. 28 and March 4 to close at 2,439.83.
Trading volumes remained strong, averaging 189 million shares daily. In a good week for Venture stocks, 126 companies reached 52-week highs, while 34 hit new lows.
Bear Creek Mining jumped $2.53 to $11.65 after signing construction and engineering contracts for its Santa Ana silver project in Peru, making it the week’s biggest value gainer. The company plans to begin construction of the heap-leach mine in late 2011, with production targeted for the latter half of 2012. First, however, the company needs environmental approval, which it hopes to receive in mid-2011. On Feb. 23, Bear Creek successfully completed the public audience portion of the required environmental and social impact assessment process.
Manganese explorer Reunion Gold became the biggest percentage gainer on the index after releasing excellent trenching results from its Matthews Ridge project in Guyana. The company plans to drill 24,000 metres at the past-producing property in 2011 to follow up on the trenching results, which included 64 metres of 20.5% manganese.
Manitou Gold rose 111% after drilling exceptionally high gold grades on its Kenwest property in northwestern Ontario. The results, including a staggering 0.55-metre intercept grading 53,700 grams gold per tonne, helped the stock rise to an intraday high of $1.13 from 71¢. The Kenwest property hosts the historic Big Master mine, which last saw production in the 1940s. Gold mineralization at the site has been identified in two parallel shear zones 40 metres apart, with the Big Master mine on one gold structure and the recent bonanza-grade drill results found on the other. Shares of Manitou then drifted downward, closing at 72¢.
Also gaining on high-grade drill results was Vancouver-based Roxgold, the most active stock with 29.4 million shares traded. Roxgold intersected 6 metres of 24.62 grams gold at its recently optioned Yaramoko project in Burkina Faso, adjoining Semafo’s Mana go
ld mine. Roxgold is earning a 60% interest in Yaramoko and two other gold properties from fellow Burkina Faso explorer Riverstone Resources. The joint venture partners say the drilling at Yaramoko has triggered a gold rush of local artisanal miners.
Northern Abitibi Mining dropped 33.3% following the release of a maiden resource estimate for its Viking gold property in Newfoundland. Northern Abitibi shares dropped 12.5¢ to 13¢, making it one of the largest percentage losers for the week. An independent resource estimate for Viking pegged the resource around 123,242 inferred gold oz. at a cut-off of 0.61 gram gold.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
RoxgoldROG294770.560.270.44+0.23
Slam ExploratnSXL280480.140.120.13-0.02
Tearlach ResTEA144260.270.090.09+0.04
US SilverUSA137220.740.550.70+0.08
Manitou GoldMTU133011.130.660.72+0.38
Avanti MngAVT128970.360.250.32+0.09
PMI GoldPMV128411.080.600.98+0.31
Brookemnt CptBKT119350.320.250.25-0.03
Conway ResCWY117930.090.070.080.00
Universal PowrUNX117105.875.175.79+0.49
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Reunion GoldRGD42351.650.701.51+115.7
Manitou GoldMTU133011.130.660.72+111.7
RoxgoldROG294770.560.270.44+109.5
Endurance GoldEDG38940.250.120.25+108.3
Tearlach ResTEA144260.270.090.09+80.0
Strategic ResUVR64470.280.160.27+68.7
Azimut ExplAZM10971.680.991.60+66.6
Sanatana DiamSTA14050.470.220.45+60.7
Killdeer MnlsKMI12920.160.100.14+55.5
Metropolitn MgMNZ1430.170.140.17+54.5
Northern AbitiNAI51120.280.120.13-48.0
MazarinMAZH340.050.040.04-33.3
Spruce Ridge RSHL1320.290.200.20-33.3
Tawsho MngTAW1200.220.160.16-33.3
Silver SpruceSSE94070.260.150.16-30.4
Pac Coast NiklNKL12680.160.130.14-30.0
Module ResMLE460.110.100.11-26.6
DNI MetalsDNI11140.260.190.20-25.9
Azteca GoldAZG30230.040.030.03-25.0
Astorius ResASQ500.250.220.22-24.1
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Bear Creek MngBCM278086111.65+2.53
Batero GoldBAT24919746.30+1.65
Geomega ResGMA11178294.75+1.30
Amazon MngAMZ5510478.05+1.15
Trelawney M&ExTRR25122224.95+1.05
Mirasol ResMRZ4304847.70+0.85
Reunion GoldRGD42347131.51+0.81
Dia Bras ExplDIB1383923.56+0.79
Richfield VentRVC16669535.95+0.65
Azimut ExplAZM10972231.60+0.64
Rare Elemnt RsRES84417811.08-1.15
Chesapeake GldCKG23171912.06-0.73
Pac Booker MinBKM284378.16-0.64
Hana MngHMG31647513.75-0.50
Clifton StarCFO5013474.25-0.42
Mansfld MnrlsMDR2826952.44-0.36
Orbite Expl AORTA77977062.57-0.29
Rainy River RsRR141606211.99-0.26
Olivut ResOLV9648901.73-0.20
Anfield NickelANF1491584.40-0.20
U.S. markets
U.S. equities failed to make up much ground in the Feb. 28 to March 4 period after losses the week before, but they also managed not to lose more ground as oil prices stayed high and Middle-East instability continued. The S&P 500 index eked out a 1.27-point gain to end at 1,321.15, while the Dow Jones industrial average gained 39.43 points, or 0.3%, to end at 12,169.88.
Precious metal stocks fared a little better, with the Philadelphia Gold and Silver index edging up 3.65 points or 1.7% to 215.86 as gold went up US$18.90 to US$1428.20 per oz. And though gold stocks dominate the index, silver played its part as the metal climbed US$2.29 per oz. or 6.9% to US$35.67. Silver winners in the period included: Coeur d’Alene Mines, climbing US$7.05 to US$34.70 for the highest overall gains of the week; Silver Wheaton up US$4.33 to US$44.96 on the second highest gains; Silver Standard gaining US$3 to US$29.60; and Endeavour Silver up US$2.16 or 30% to US$9.34. Of course, the silver price itself was not the only driver for these stocks, with a number of companies reporting earnings.
Silver Wheaton announced 2010 profits of US$290.1 million and its first dividend of US3¢ per share. Fourth quarter earnings more than doubled compared with the same quarter in 2009 to US$123 million, while operating cash flow was up 76% to US$124.7 million. Looking to 2011 the company expects attributable production of 27-28 million silver equivalent oz., a 15% increase over 2010.
Silver Standard had net earnings of US$346.2 million in the year, after producing 6.3 million oz. silver, while it expects to produce 8.5 million oz. silver in 2011. The company also reached an agreement to acquire the rest of its San Luis gold-silver project in Peru from its joint venture partner.
Endeavour Silver was up after updating resources for its Parral project in Mexico’s Chihuahua State. Indicated resources now stand at 1.6 million tonnes grading 49.39 grams silver per tonne, 0.9 gram gold per tonne, 0.15% copper, 2.87% lead and 2.86% zinc for a net smelter return per tonne of US$75.38; inferred resources came in at 1.3 million tonnes grading 63.47 grams silver, 0.88 gram gold, 0.2% copper, 2.55% lead and 2.28% zinc.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA10922716.9416.1316.58-0.10
Silver Wheatn*SLW8626245.4041.0544.96+4.33
Hecla Mining*HL7637711.089.7410.12-0.67
Freeport McMo*FCX7078353.5051.0151.71-0.74
Goldcorp*GG4861850.2546.9350.07+3.09
Newmont Mng*NEM4563456.4752.6954.27-0.19
Kinross Gold*KGC4545416.0915.0015.64-0.36
Barrick Gold*ABX4082554.2651.9152.83+0.95
Intl Coal Gp*ICO4053710.609.4810.54+0.78
Potash C Sask*POT3984562.3560.1461.09+1.09
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Tri-Valley*TIV316720.770.400.67+59.5
Bullion Monar*BULM39231.951.241.72+59.2
Dejour Enterp*DEJ26300.520.320.48+50.0
Commerce Grp*CGCO240.040.020.04+33.3
Apolo Gold*APLL240.200.200.20+33.3
Endeavr Silvr*EXK24629.347.229.34+30.0
Li3 Energy*LIEG17390.560.420.52+26.8
Metalline Mng*MMG15141.371.061.34+26.4
Coeur d Alene*CDE2853035.4128.5034.70+25.5
Midway Gold*MDW12182.121.702.12+23.9
Elray Res*ELRA8210.030.020.02-50.0
Gold Am Mng*SILA18590.200.100.14-26.3
Silver Dragon*SDRG18680.120.090.09-25.0
Yellowcake Mg*YCKM5510.050.030.04-20.0
Fischer-W Gld*FWGO5230.050.040.05-16.6
US Antimony*UAMY930.560.480.48-12.7
China Shen Zh*SHZ7236.175.145.23-11.3
Ur-Energy*URG4532.902.532.53-11.2
Golden Phoen*GPXM20980.190.170.18-10.0
Petaquilla Mn*PTQMF29981.210.931.06-9.4
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Coeur d Alene*CDE2852957034.70+7.05
Silver Wheatn*SLW8626237944.96+4.33
Peabody Enrgy*BTU2124094569.35+4.05
Allied Nevada*ANV70776733.96+3.96
Cliffs Nat Rs*CLF1866974199.12+3.89
Soc Quim&M Ch*SQM251051756.14+3.29
Goldcorp*GG4861789050.07+3.09
Silver Std Re*SSRI886854529.60+3.00
Consol Energy*CNX1595595852.48+2.67
Arch Coal*ACI1879725935.99+2.59
Compass Mnls*CMP38813490.45-1.55
OM Group*OMG148138234.89-1.15
Rare Elemt Re*REE1220262811.44-1.06
Randgold Res*GOLD240920380.48-0.82
Freeport McMo*FCX7078286551.71-0.74
China Shen Zh*SHZ7225705.23-0.67
Hecla Mining*HL7637720910.12-0.67
AngloGold Ash*AU938841647.85-0.65
Alum Cp China*ACH46464523.58-0.50
Cameco Corp*CCJ1011588840.63
-0.48
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