Market news

Toronto Stock Exchange

The June 6-10 trading week saw the TSX Composite Index tumble 433.9 points, or 3.2%, to hit 13,084, its lowest level in more than six months. The drop came as concerns rose over the global recovery rate and Greece’s debt crisis. The price of gold slid US$10.30 to US$1,532.10 per oz., while the Global Gold Index dropped 18.56 points to 362.95. The Capped Metals & Mining Index also sank 79.8 points to 1,306.70.  

The week’s biggest percentage gainer was BRC Diamond Core, gaining 25% to close at 10¢ per share on no news. The African-focused diamond explorer announced, however, that it closed a private placement of 2.5 million units for $250,000 on May 27. 

Gold Reserve shares surged 24.7% to $2.27 on 224,000 shares traded, also on no news during the week. A June 13 company press release indicated that it was unaware of material corporate development, which would explain the increase in stock price and trading volume.  

Keeping with the no news pattern, Fortune Minerals rose 16.5% to $1.55 per share. It announced June 1 that it would release first quarter results soon. In late May the company filed a developer’s report for the environmental assessment of its NICO polymetallic project in the Northwest Territories, which showed the project is economically viable. 

Imperial Metals led the week’s value gainers, moving $1.29 to $20.68. Imperial announced that its subsidiary, Red Chris Development, will acquire all outstanding shares that are not already owned by American Bullion Mineral, as part of a
previously reported plan of arrangement to settle a minority shareholders’ class
action lawsuit. American Bullion shareholders approved the arrangement on June 9. 

Tahoe Resources jumped 79¢ to $19.88 on 1.7 million shares traded, after providing an update on recently completed infill drilling at its Escobal silver-gold project in Guatemala. The drilling identified potential for resource expansion and also a new zone, Margarito, in the West Central zone. The company says the Margarito zone is near 48 metres in true width, and similar in vein mineralization as Escobal. So far, the project has seen 277 holes and more than 82,700 metres of drilling. 

In the most active category, Lundin Mining took the week’s prize with 30.6 million shares traded, gaining 39¢ to close at $6.55 per share on no news. 

Trailing close behind, Uranium One saw 28 million shares traded, closing 63¢ to $2.81 apiece. On June 7, the company announced that its 51%-shareholder, Atomredmetzoloto, completed the acquisition of Mantra Resources, adding that Uranium One is now the operator of Mantra’s Mkuju River uranium project in Tanzania. 

A revised feasibility study for Mkuju River is expected in early 2012.

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Lundin MngLUN306247.036.556.57-0.39

Uranium OneUUU280353.472.712.81-0.63

Cline MngCMK228102.672.112.41-0.23

Kinross GoldK2160515.7414.6715.15-0.42

Teck BTCKB1664449.6045.3145.51-4.00

Yamana GoldYRI1479212.4311.2111.25-1.11

GoldcorpG1249948.7145.3546.20-1.78

B2GoldBTO107483.723.213.68+0.42

Barrick GoldABX1061145.5842.4242.62-2.25

Avion GoldAVR99231.641.441.64+0.11

TSX greatest percentage change

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BRC DiamondCrBCD5490.110.080.10+25.0

Gold ReserveGRZ2242.381.682.27+24.7

Fortune MnrlsFT5981.581.301.55+16.5

B2GoldBTO107483.723.213.68+12.8

Anvil MiningAVM16796.345.436.27+10.9

Horizns G BearHGD205311.4210.1011.25+9.9

MInera IRLIRL6721.150.891.15+9.5

Silver Bear RsSBR3460.810.670.81+8.0

Coalspur MinesCPT25651.781.571.75+7.3

Avion GoldAVR99231.641.441.64+7.1

EMC MetalsEMC22080.250.160.18-25.0

TriAusMinTOR6040.170.120.12-25.0

NoventaNTA4250.960.680.77-22.2

MigaoMGO46615.403.843.98-21.9

Redzone ResREZ610.410.350.35-20.4

Champion MinlsCHM28032.021.591.62-20.2

Talon MetalsTLO4491.791.251.38-19.7

First UraniumFIU40310.700.510.54-19.4

Minco SilverMSV7465.253.774.14-19.3

Northern Dyn MNDM138111.299.129.26-18.3

TSX greatest value change

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Imperial MetalIII12426420.68+1.29

Horizns G BearHGD205284211.25+1.02

Tahoe ResTHO170579819.88+0.79

Anvil MiningAVM16789426.27+0.62

Golden MnlsAUM1271117.60+0.61

Gold ReserveGRZ2237132.27+0.45

Russell MetalsRUS60482823.30+0.43

B2GoldBTO107482083.68+0.42

Fortune MnrlsFT5984831.55+0.22

Virginia MinesVGQ683728.51+0.15

Inmet MiningIMN78286966.77-4.06

Teck BTCKB1664363945.51-4.00

Agnico-EagleAEM251410960.19-3.80

Allied NevadaANV90749530.33-3.30

Teck ATCKA1206247.00-3.25

Silver WheatonSLW791611831.46-3.01

First QuantumFM1979756120.03-2.97

Labdr I-Ore RoLIF_U64757167.01-2.74

Pan Am SilverPAA116452429.06-2.72

Newmont MngNMC1557551.09-2.53

TSX Venture Exchange

The S&P/TSX Venture Composite Index continued to slide during the June 6-10 trading period, falling 79.6 points to 1,934. The index has already retreated 21.5% from its early March peak of 2,464 points, slightly more than the 20.5% total fall experienced during last year’s market downturn from May through July, when the index dropped from roughly 1,700 points to 1,350. Average daily trading volume remained low at 92 million shares.

IBC Advanced Alloys saw the most trading activity over the trading period after it entered an exclusive supply contract to provide investment-cast engineered components to a leading technology manufacturer. It will supply the manufacturer with its Beralcast family of beryllium-aluminum alloys, which Vancouver-based IBC says are more than three times stiffer than aluminum, 22% lighter and easily precision-cast. Financial terms of the deal were undisclosed.

Rio Alto Mining also saw plenty of volume but fell 13¢ over the trading week to close at $2.25. In May, Rio Alto shares rose after the company poured the first gold from its La Arena gold mine in Peru, however, the stock has since retreated from its 52-week high of $2.78 as political concerns in Peru heat up. On June 5, left-wing nationalist Ollanta Humala won Peru’s presidential run-off election, prompting a sell-off in many Peru-focused mining stocks. Investors fear the new government will institute a windfall mining tax.

Western Potash saw the biggest value gain over the week, climbing 19¢ to close at $1.54. Exploration results from the company’s Milestone potash project in Saskatchewan boosted estimated resources by 40%. Measured resources now stand at 637 million tonnes of in-place sylvinite grading 30.4% potassium chloride (KCl) for 64 million tonnes KCl. Indicated resources are 1.8 billion tonnes sylvinite at similar grades for 180 million tonnes KCl, while inferred resources total 8.9 billion tonnes sylvinite for another 701 million tonnes KCl. A prefeasibility study for Milestone is due in the fourth quarter.

Also bucking the downtrend was Allana Resources, a potash explorer focused on its Dallol project in Ethiopia. Shares of
Allana climbed 13¢ over the week to $1.94 after the company released drill results showing strong potash mineralization in a central part of the Dallol evaporite basin, including 4.1 metres of 37.8% KCl in sylvinite starting from a depth of 349 metres. An update to the cu
rrent resource estimate is expected later this month.

Ginguro Exploration rose 43% to 23¢. In May, the company received drill permits for its El Alto iron-oxide-copper-gold project in Chile and began road construction to the site. It now plans to start diamond drilling in mid-June with a $1.5-million program.

TSX-V most active issues

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(000s)HIGHLOWCLOSECHANGE

IBC Adv AlloysIB115740.240.170.20+0.01

Rio Alto MngRIO92372.341.762.25-0.13

Allana ResAAA87051.971.761.94+0.13

IC PotashICP81321.251.101.210.00

Western PotashWPX66601.601.361.55+0.19

Dacha Str MtlsDSM64910.790.640.78+0.12

Orbite Expl AORTA61503.502.862.88-0.59

Ultra LithiumULI58220.080.060.08+0.01

Sandstorm ResSSL44041.121.001.06+0.01

Silver Quest RSQI43251.010.880.95-0.01

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(000s)HIGHLOWCLOSECHANGE

Noble Metal GrNMG310.060.060.06+100.0

Ring of Fire RROF12860.140.090.13+44.4

Ginguro ExplGEG6680.250.170.23+43.7

Duncan Park HDPH150.100.080.10+42.8

Wildcat ExplWEL3470.050.040.04+33.3

Windarra MinlsWRA1000.170.170.17+30.7

Karmin ExplKAR1450.350.250.32+28.0

Arco ResARR5410.060.050.05+25.0

Cougar MnlsCOU4230.050.040.05+25.0

Prominex ResPXR2050.060.050.05+25.0

Getty CopperGTC660.090.050.05-50.0

Uravan MinlsUVN320.290.200.20-37.5

Firesteel ResFTR410.090.070.07-36.3

Calypso UranCLP480.200.170.17-34.6

Open GoldOPG4760.100.090.10-33.3

Cobalt CoalCBT39720.040.020.02-33.3

Advanced PrimaAPD130.230.200.20-33.3

Colibri ResCBI8550.320.220.22-29.0

Cadillac MngCQX190.120.100.10-28.5

Goldeye ExplGGY7640.060.050.05-28.5

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Western PotashWPX66597771.55+0.19

Orko SilverOK13098742.65+0.18

Fortress MnlsFST174075.20+0.15

Allana ResAAA87049151.94+0.13

Dacha Str MtlsDSM64906670.78+0.12

Rugby MngRUG2957001.16+0.11

Wesgold MnlsWSG370000.51+0.10

CangoldCLD472000.49+0.09

Ryan GoldRYG1850851.78+0.08

Ninety Nine CpWDG6627642.18+0.08

Lumina CopperLCC3268185.50-1.30

Bear Creek MngBCM25081715.05-1.15

Mirasol ResMRZ6638694.80-1.05

Tasman MetalsTSM8862913.90-0.88

Quest Rare MnlQRM12750745.84-0.76

Chesapeake GldCKG11458311.80-0.75

Dia Bras ExplDIB1363142.75-0.75

Canaco ResCAN33501803.46-0.65

Atacama Pac GdATM1904005.13-0.62

Orbite Expl AORTA61498682.88-0.59

U.S. markets

The market slump continued unabated for the June 6-10 period as the Dow Jones Industrial Average dropped 200 points to 11,951.91, while the S&P 500 Index lost 30 points to finish at 1,210.98. 

The drop occurred after Federal Reserve Chairman Ben Bernanke delivered his view on the economic recovery. When Bernanke stated that the Federal Reserve was not inclined to expand the loose monetary policy known as Quantative Easing Two, equities sold off. Coupled with Bernanke’s remarks were weak first-quarter credit data showing an ongoing deleveraging process among U.S. households. 

A few junior gold miners managed to scratch-out gains with Gold Reserve, Tara Gold and Douglas Lake Minerals at the front of the pack in terms of percentage points.

Alcoa shares were the most actively traded for the period, falling 64¢ to US$15.28. That lower price came despite the company announcing a new aluminum product line for the aerospace market. Alcoa says the new aluminum product is 10% lighter than current materials used, and will result in a 12% increase to fuel
efficiency. 

Midway Gold was up 7% to $1.74 after announcing it closed a bought financing deal that put US$12 million in the bank by issuing 7.5 million shares at US$1.60 per share. Midway says it will use the money to fund project development in Nevada. 

The U.S. Department of Justice said Hecla Mining has agreed to pay more than US$263 million to settle claims surrounding environmental damage caused by the release of waste. The funds will be paid to the U.S. government, the Coeur d’Alene tribe and the Idaho state, and will go to restoring and remediating natural resources in the Coeur d’Alene Basin. The tribe sued Hecla and other mining companies two decades ago. In 1996 the government joined the lawsuit, seeking money for damage to water, fish and birds as a result of millions of tonnes of mining wastes released into the South Fork of the Coeur d’Alene River and its tributaries. Hecla shares were $7.20 at presstime.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA9475816.0315.1715.28-0.64

Freeport McMo*FCX8762151.0748.5148.93-1.00

Silver Wheatn*SLW4667435.6531.8132.11-3.06

Hecla Mining*HL430667.997.267.38-0.52

Arch Coal*ACI3922727.6125.8125.90-1.40

Potash C Sask*POT3697255.7952.5555.14-0.03

Intl Coal Gp*ICO3689114.5914.5614.58+0.01

Barrick Gold*ABX3583646.5543.3543.56-2.27

Newmont Mng*NEM3411854.8651.6952.10-2.65

Kinross Gold*KGC3327416.0914.9715.50-0.40

U.S. greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Gold Reserve*GRZ5842.451.802.32+27.4

Tara Gold*TRGD3650.410.300.38+26.6

Douglas Lk Ml*DLKM8440.480.380.46+12.2

Li3 Energy*LIEG18950.300.210.28+12.0

OM Group*OMG214839.3334.9438.69+9.3

Midway Gold*MDW2391.761.611.74+7.4

Mechel*MTL270727.4225.5126.96+3.6

Legend Intl H*LGDI5410.620.550.60+3.4

Intrepid Pots*IPI125131.6428.9131.51+2.7

Vista Gold*VGZ17812.932.762.88+2.1

Cream Mnrls*CRMXF1530.230.170.18-28.0

China Shen Zh*SHZ1893.853.013.03-21.0

Fischer-W Gld*FWGO150.040.040.04-20.0

Cornerstone C*CTNXF250.390.320.32-17.9

Northern Dyn*NAK393711.609.329.50-17.6

Samex Mng*SMXMF6811.230.990.99-16.8

Crosshair E&M*CXZ1720.950.730.75-16.6

Gold Am Mng*SILA4290.080.050.05-16.6

Rare Elemt Re*REE726111.849.619.75-16.3

Minco Gold*MGH13132.021.591.66-15.7

U.S. greatest value change

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VOLUMECLOSECHANGE

OM Group*OMG214781338.69+3.31

Mechel*MTL270724626.96+0.95

Intrepid Pots*IPI125094531.51+0.84

Gold Reserve*GRZ5842562.32+0.50

Midway Gold*MDW2385421.74+0.12

Tara Gold*TRGD3652650.38+0.08

Paramount Gld*PZG47228083.30+0.06

Vista Gold*VGZ17812962.88+0.06

North Am Pall*PAL117829863.73+0.06

Douglas Lk Ml*DLKM8441220.46+0.05

Buenaventura*BVN1731116337.32-4.72

Alpha Nat Res*ANR2855168945.69-4.28

Teck B*TCK1459415346.57-3.92

Agnico-Eagle*AEM701093361.55-3.72

Peabody Enrgy*BTU2731863455.33-3.43

Allied Nevada*ANV99602531.02-3.36

Silver Wheatn*SLW4667429432.11-3.06

Randgold Res*GOLD282610778.01-2.99

Pan Am Silver*PAAS852611229.70-2.66

Newmont Mng*NEM3411817752.10-2.65