Toronto Stock Exchange
The market continued to dash the hopes of bulls as the TSX Composite Index fell 293 points from May 30 to June 3, despite positive developments in the Great White North’s economy.
First quarter GDP growth was better than expected, but the Bank of Canada did not raise rates. While this could have been a boon to equities, the party up north was spoiled by weak economic data from the U.S.
The downward trajectory of the overall Index was mirrored by the gold sector. The Global Gold Index was down 8 points to 381.51, even though the price for gold rose US$2 to finish at $1,542 per oz.
The Capped Metals & Mining Index fell 44 points to finish at 1,386.50, as a basket of metals including copper, nickel, aluminum, tin, lead and zinc all fell in price.
The TSX60 Index dropped 16 points to finish at 774.07.
A budgeting shortfall hit the shares of Noventa hard. The tantalum producer says it needs $25 million to bring its Marropino project to targeted capacity. The mine is projected to produce 600,000 lbs. of tantalum by the end of the year, but faces delays due to a funding gap. The company announced days earlier that mechanical difficulties cut into targeted production rates. Noventa lost 66% of its market cap over the period, as shares finished trading at 92¢. Those same shares traded for more than $3 a few months ago.
The announcement of a deal with an Indian-listed company to help develop a project in India did little to help Minemakers‘ shares. The company’s stock price fell 22% to 50¢ for the period. Minemakers announced it had signed a memorandum of understanding with NMDC Limited that clears the way for development of its Wonarah phosphate deposit in the Northern Territory of India. While specific terms of the joint-venture to be negotiated as feasibility unfolds, the company says the deal allows NMDC to acquire a 50% stake in the project, and that NMDC will arrange project financing for full development costs by way of debt
financing.
Canada Lithium announced it received a construction permit for the development of its Quebec Lithium project. The company needs several more permits, but the market took a favourable view on the news as shares climbed 15% to 71¢. Permits are required for construction of surface service infrastructure. The upward movement in stock price reversed the company’s recent market slide, which came on the back of an updated resource estimate that showed the project has less resources than first reported. Canada Lithium’s own internal review revealed problems with the original resource estimate, which was released in late October 2010.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Equinox MinlsEQN615918.157.838.14+0.54
Lundin MngLUN352017.256.866.96-0.20
Kinross GoldK2533215.9215.0815.57-0.19
Sherritt IntlS205317.336.967.13+0.05
Uranium OneUUU177413.763.383.44-0.36
Avion GoldAVR157901.681.441.53+0.05
Romarco MnrlsR126792.151.882.06+0.18
Eldorado GoldELD1226315.8014.4414.54-1.12
Teck BTCKB1146351.8747.5949.51-0.81
Osisko MngOSK1095814.4314.0014.22+0.11
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Crescent GoldCRA5730.060.050.06+20.0
Canarc ResCCM4620.180.150.18+20.0
Polaris MinlsPLS701.000.871.00+17.6
Canada LithiumCLQ43630.730.570.71+14.5
TVI PacificTVI63860.090.070.08+14.2
Extorre Gold MXG165011.6010.3511.55+10.6
Olympus PacifOYM12900.440.400.44+10.0
Romarco MnrlsR126792.151.882.06+9.5
San Gold ResSGR63323.112.793.00+8.3
Revett MnlsRVM2294.193.834.12+7.8
NoventaNTA13942.810.900.99-65.7
MinemakersMAK120.600.500.50-21.8
Zincore MtlsZNC5660.400.320.34-19.0
Powertech UranPWE2740.220.170.17-19.0
MigaoMGO36276.595.055.10-18.7
Trevali ResTV7361.621.301.33-18.4
BRC DiamondCrBCD1300.120.090.09-18.1
Polar Star MngPSR3271.100.740.79-17.7
Starfield ResSRU29280.080.050.05-16.6
Mandalay ResMND6320.930.750.78-16.1
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Inmet MiningIMN218087470.83+4.36
Central Gold-TGTU_U2258258.00+1.51
Extorre Gold MXG165040811.55+1.11
Agnico-EagleAEM218431463.99+0.70
Equinox MinlsEQN615910378.14+0.54
Alamos GoldAGI114215715.19+0.51
Kirkland Lk GdKGI68505515.16+0.44
Tahoe ResTHO84158519.09+0.43
Horizns G BearHGD173299110.23+0.41
AgriumAGU307127784.82+0.36
First QuantumFM1432362123.00-8.01
Labdr I-Ore RoLIF_U39704569.75-2.66
Ivanhoe MinesIVN510427122.93-2.16
Allied NevadaANV54698533.63-2.02
Coeur d AleneCDM14713424.80-1.90
NoventaNTA13941600.99-1.90
Seabridge GoldSEA6693427.60-1.85
Centerra GoldCG396249016.61-1.74
Russell MetalsRUS61349722.87-1.69
Newmont MngNMC2954653.62-1.54
TSX Venture Exchange
After a short upward climb, the S&P/TSX Venture Composite Index headed back down during the May 30 to June 3 trading period. The Index dropped 45.05 points over five days of losses to 2,055.62 points on especially low volumes, dipping to an average 88 million shares traded daily.
Dia Bras Exploration was the biggest value gainer, climbing 51¢ to $3.50 on a modest volume of 125,000 shares traded. The company recently closed a US$286-million acquisition of 29.4 million shares of Peruvian mining company Minera Corona, which translates to 82% of the company, or 92% of voting shares. To finance the purchase, Dia Bras entered a US$150-million credit agreement with Banco de Credito del Peru and closed a $137.4-million private placement. Dia Bras is making the acquisition to gain control of the Yauricocha silver-copper-lead-zinc mine in Peru.
Panama-focused Pershimco Resources was up 19¢ to 90¢ on 5.5 million shares traded in the period. The company is advancing its Cerro Quema gold-copper project in the country and recently announced it completed just over half of a 6,000-metre drill program. Pershimco is drilling to expand the resource to the north and at depth at its LaPava and Chontal targets, and the Quema-Quemita target 2 km east. Earlier in May the company completed a $3-million private placement at 50¢.
Rio Alto Mining was the most-traded stock on the Venture, clocking roughly 9.2 million shares traded on no news. The activity, however, had the company losing much of its 39¢ gain seen the previous week as its share price dropped 25¢ to $2.38. Rio Alto is developing the La Arena gold-copper mine in Peru, where in early May it achieved its first gold pour. The company optioned the property from Iamgold in 2009.
Second in activity, Habanero Resources was up 3¢ to 14.5¢ on 8.7 million shares traded. The junior explorer, with property holdings across Canada, recently arranged a $1.63-million financing to work on silver and gold projects in the Yukon and its Lezai gold project in Quebec. The non-brokered private placement includes up to 10 million flow-through units at 13¢ each and 3 million non-flow-through units at 11¢, with each unit consisting of one share and one transferable share purchase warrant. Warrants for the flow-through units are exercisable at 20¢, while non-flow-though warrants are exercisable at 15¢.
Dorex Minerals had one of the biggest percentage gains. It rose 7.5¢ or 48.4%, and closed at 23¢ on 437,000 shares traded.
The company recently executed a letter of intent with a private Mexican company for an option to earn 75% of the Tres Hermanos property in Mexico’s Chihuahua state, in the Batopilas mineral district of the Sierra Madre’s precious-metal belt.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Rio Alto MngRIO91662.622.152.38-0.25
Habanero ResHAO86570.150.120.14+0.04
IC PotashICP85731.291.171.21+0.04
IBC Adv AlloysIB84680.260.170.19-0.08
Orbite Expl AORTA68144.193.423.47-0.66
Silver Quest RSQI67551.070.920.96+0.01
Sandstorm ResSSL61551.120.961.05+0.09
Cadillac VentCDC60930.170.140.17+0.01
Ultra LithiumULI57460.090.060.08+0.01
Pershimco ResPRO54780.910.690.90+0.19
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Spruce Ridge RSHL420.250.210.25+92.3
Mazorro ResMZO4620.250.160.25+56.2
Dorex MinlsDOX4370.230.140.23+53.3
Dianor ResDOR22930.050.030.03+50.0
Manicouagan MlMAM28800.030.020.03+50.0
West High YldWHY3360.600.290.44+46.6
Hudson River MHRM100.100.100.10+42.8
Excel Gold MngEGM6370.100.080.10+42.8
Habanero ResHAO86570.150.120.14+40.0
Eastfield ResETF710.140.110.14+40.0
IBC Adv AlloysIB84680.260.170.19-29.6
Trigen ResTRG640.220.170.17-29.1
Advance GoldAAX4390.070.050.05-28.5
Tawsho MngTAW240.130.110.11-26.6
Kirrin ResKYM5600.070.060.06-25.0
Skeena ResSKE4870.090.060.06-25.0
Pac Casc MinlsPCV4410.080.050.06-25.0
Searchgold ResRSG10810.040.030.03-25.0
Diadem ResDRL2370.080.060.07-22.2
PlatinexPTX5070.090.070.07-22.2
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Dia Bras ExplDIB1486813.50+0.51
Chesapeake GldCKG8317612.55+0.43
Callinan MnsCAA3068653.73+0.36
Batero GoldBAT9841863.33+0.33
Pershimco ResPRO54779300.90+0.19
Andina MnlsADM2831251.35+0.19
Kestrel GoldKGC3636700.95+0.17
McChip ResMCS184002.36+0.16
Aldridge MinlsAGM1208801.35+0.15
Maudore MinlsMAO1547515.74+0.14
Quest Rare MnlQRM9795576.60-0.98
Bear Creek MngBCM27603036.20-0.78
Great Quest MeGQ4738903.69-0.71
Orbite Expl AORTA68144363.47-0.66
Geomega ResGMA7172902.33-0.60
Tasman MetalsTSM4944424.78-0.40
Cayden ResCYD769003.53-0.37
Atac ResATC2025966.28-0.32
Canaco ResCAN13734744.11-0.32
Energold DrillEGD4342854.33-0.25
U.S. markets
U.S. markets were closed for the Memorial Day holiday on May 30, and when they re-opened, they posted their fifth straight week of losses. Disappointing economic data confirmed the U.S. economic recovery has hit a soft spot, with the jobless rate rising to 9.1% in May. The Dow Jones Industrial Average sank 290.32 points or 2.33% to close at 12,151.26, while the S&P 500 Index fell 30.94 points or 2.32% to finish at 1,300.16. The Philadelphia Gold and Silver Index dropped 5.2 points or 2.49% to 203.27.
Shareholders approved Alpha Natural Resources‘ US$7.1-billion purchase of Massey Energy on June 1, sending shares of Massey up US$1.12 to close at US$65.14. The deal will create the largest metallurgical or coking coal company in the U.S., but one that will have to deal with the legacy of the disaster at Massey’s Upper Big Branch mine in West Virginia last year, in which 29 miners died – the worst mine accident in the U.S. in 40 years. Alpha’s shares fell US$3.10 to US$49.97.
Agnico-Eagle Mines was the best performing gold company during the abbreviated trading week, adding 59¢ to US$65.27. The gold miner announced on May 30 that it had acquired 3 million units of Colibri Resource in a private placement lifting its stake in the company to 18.6%. Colibri holds mineral properties in the state of Sonora, northwestern Mexico.
Shares of Augusta Resource were up 16¢ to US$4.53 following news the company’s preliminary draft Environmental Impact Statement on its Rosemont Copper project had been delivered to Arizona state and local cooperating agencies. The Rosemont deposit is expected to produce 221 million lbs. copper a year, which the company says could account for as much as 10% of all copper output in the United States. Rosemont is also expected to produce silver and molybdenum over a mine life of more than 20 years.
Habanero Resources surged 25% to 15¢ per share on no news. On May 27 the junior announced a non-brokered private placement valued at $1.63 million, to fund exploration at its Yukon and Quebec projects.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Freeport McMo*FCX8909952.7048.4049.93-1.80
Alcoa*AA7685316.8315.7715.92-0.56
Arch Coal*ACI7445030.2926.6027.30-2.30
Alpha Nat Res*ANR6431855.2049.8049.97-3.10
Silver Wheatn*SLW3776037.2034.4335.17-1.36
Kinross Gold*KGC3460816.3015.4015.90-0.21
Barrick Gold*ABX3241948.2245.5045.83-1.56
Mosaic*MOS3139672.0767.1268.99-1.05
Hecla Mining*HL299798.647.857.90-0.60
Potash C Sask*POT2997457.8753.7155.17-0.82
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Habanero Res*HBNRF1330.150.120.15+25.0
Silver Dragon*SDRG4200.130.110.12+20.0
Canarc Res*CRCUF4940.190.160.19+11.7
El Capitan Pr*ECPN20010.900.730.87+8.7
Cornerstone C*CTNXF550.430.380.40+8.1
Geovic Mng*GVCM1780.500.450.49+4.2
Anooraq Res*ANO10400.900.780.82+3.8
Augusta Res*AZC3144.684.254.53+3.6
Tara Gold*TRGD2390.350.270.31+3.3
Tri-Valley*TIV28980.780.660.71+2.9
Gold Am Mng*SILA5490.090.010.07-22.2
Li3 Energy*LIEG19320.320.220.24-20.0
Ur-Energy*URG4381.751.531.53-15.0
Starfield Res*SRFDF1200.070.060.06-14.2
PolyMet Mng*PLM10601.901.581.62-13.3
Entree Gold*EGI4902.532.062.14-13.3
Douglas Lk Ml*DLKM3500.470.410.41-12.7
North Am En P*NOA5319.627.878.32-12.5
Samex Mng*SMXMF4401.381.101.19-12.5
Bullion Monar*BULM1201.331.141.15-11.5
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Massey Energy*MEE1432576965.14+1.12
Soc Quim&M Ch*SQM333842261.50+0.83
Agnico-Eagle*AEM484133665.27+0.59
Harmony Gold*HMY997900614.15+0.36
Augusta Res*AZC3140464.53+0.16
Agrium*AGU225146286.57+0.12
HudBay Mnls*HBM3394415.02+0.09
Banro Res*BAA10474843.42+0.07
El Capitan Pr*ECPN20005480.87+0.07
Exeter Res*XRA2449914.86+0.07
Alliance Rs P*ARLP44296869.60-3.15
Alpha Nat Res*ANR6431843249.97-3.10
Peabody Enrgy*BTU2301233358.76-2.86
BHP Billi-BBL*BBL659101575.60-2.78
BHP Billi-BHP*BHP1123935591.85-2.60
Cabot Corp*CBT116377739.61-2.45
Cliffs Nat Rs*CLF1304832687.29-2.38
Buenaventura*BVN986718442.04-2.30
Arch Coal*ACI7444984527.30-2.30
Ivanhoe Mines*IVN662486523.48-2.24
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