Toronto Stock Exchange
The TSX Composite Index lost 294.05 points during the June 13-17 trading week to end at 12,789.95 points. The index fell four out of five trading days, sliding 2.2%. The drop came as concern over Greece’s debt dampened news that employment rates have increased in Canada and the United States.
The Capped Metals & Mining Index also tumbled 33.53 points to 1,273.17, while the price of gold increased US$7.90 to end at US$1,540 per oz. The gain didn’t stop the Global Gold Index from slipping 9.06 points to 353.89.
Breakwater Resources was a triple winner as the week’s biggest percentage and value gainer and the most traded stock. On June 15, the zinc miner agreed to a $663-million or $7.50-per-share cash takeover bid by smelting giant Nyrstar. Breakwater gained 48.2% or $2.41 to finish at $7.41 per share on 67 million shares traded. Nyrstar looks to add zinc mines to feed its smelters, and through the transaction would acquire four zinc-polymetallic mines.
First Uranium surged 29.6% to 70¢ on no news. In the previous week, the company reported results for the year ended March 31. First Uranium reported total gold sales of 142,630 oz. gold and consolidated revenue of $172 million for the 2011 fiscal year, a 56% and 86% increase, respectively, from the previous year.
Also on no news, Gold Reserve saw its shares surge for the second consecutive week, moving 25.5% to close at $2.85. The company reported it’s unaware of any
material development to account for the improved stock price and trading activity.The miner is in international arbitration against the Venezuelan government regarding the expropriation of its Brisas gold-copper project and Choco 5 gold property.
With 31.9 million shares traded, Avion Gold was the second most active stock. The gold miner closed an earlier acquisition to buy another 12.5% interest in the Kofi Nord and Netekoto-Kenieti concessions from African Goldfields. The concessions are part of the company’s Kofi gold project in Mali. Avion had its board and management team open the market on June 14 to celebrate its recent listing on the TSX. The company’s shares closed 3¢ to $1.61.
Gold explorer Romarco Minerals saw heavy trading as it announced joining the S&P/TSX Composite Index on June 20. It moved 4¢ to $1.94 on 29.3 million shares traded.
Mexican-focused MAG Silver announced its first quarter results ending March 31. Its shares gained $1.09 to close at $9.29. The company announced working capital of $37.6 million, including $35.4 million cash-on-hand.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Breakwater ResBWR670797.474.907.41+2.41
Avion GoldAVR319061.791.581.61-0.03
Romarco MnrlsR293122.051.791.94-0.04
Torex GoldTXG273701.881.501.70+0.11
Uranium OneUUU269832.942.612.90+0.09
Kinross GoldK2662015.2914.5514.73-0.42
Starfield ResSRU239090.050.040.050.00
B2GoldBTO211213.683.163.27-0.41
Lundin MngLUN206506.836.286.45-0.12
Sulliden ExplSUE199432.231.812.02+0.12
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Breakwater ResBWR670797.474.907.41+48.2
First UraniumFIU44970.700.520.70+29.6
Gold ReserveGRZ3173.002.232.85+25.5
Great PantherGPR128683.292.593.25+25.0
Ursa Major MinUMJ83400.250.120.16+23.0
Velocity MinlsVLC360.170.150.17+21.4
UEX CorpUEX20451.100.891.10+19.5
ECU Silver MngECU170730.950.800.95+18.7
TriAusMinTOR1210.150.140.14+16.6
Trevali ResTV19791.511.191.50+16.2
Coro MiningCOP6430.900.640.66-28.2
Vaaldiam ResVAA4430.210.140.14-22.2
Polo ResPOL760.100.080.08-20.0
Jayden ResJDN8210.140.120.12-20.0
INV MetalsINV1820.560.450.45-19.6
Europn GoldfldEGU1611111.498.929.36-18.5
Greystar ResGSL11473.062.422.42-18.5
Yukon-Nev GoldYNG9140.490.400.40-16.6
Geovic MngGMC3120.420.350.35-16.6
Bannerman ResBAN8150.300.240.25-16.6
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Breakwater ResBWR670789537.41+2.41
Central Gold-TGTU_U1226657.41+1.31
Mag SilverMAG31445199.29+1.09
US Gold Can AcUXE344526.39+0.74
Golden MnlsAUM3873118.29+0.69
Altius MnrlsALS27434811.66+0.65
Great PantherGPR128678453.25+0.65
Ivanhoe MinesIVN449968622.09+0.62
Gold ReserveGRZ3174532.85+0.58
MigaoMGO44444924.50+0.52
AgriumAGU536165578.01-5.54
Potash Cp SaskPOT1132813949.55-4.34
Detour GoldDGC696122226.33-2.94
Cameco CorpCCO812813523.33-2.17
Tahoe ResTHO416647917.71-2.17
Europn GoldfldEGU161105039.36-2.13
Teck ATCKA1241844.60-2.10
Silver WheatonSLW1042033429.48-1.95
IAMGold CorpIMG779672718.13-1.81
Silver Std ResSSO102962023.71-1.73
TSX Venture Exchange
Showing little sign of bucking its larger trajectory, the S&P TSX Venture Exchange Index closed down for another week with a 36.98 point fall, ending at 1,897.94 points in the June 13-17 period. The declines kept traders away, with volumes averaging fewer than 90 million shares traded daily.
Atac Resources managed a strong showing in the period after releasing its first 2011 drill results, which came from the Ocelot target of its Rackla gold project in the Yukon. The company reports it has hit a significant silver-lead-zinc discovery, with intercepts including 41.7 metres grading 145.43 grams silver per tonne, 3.36% lead and 11.65% zinc from 110 metres depth, and 63.4 metres averaging 73.81 grams silver, 2.44% lead and 8.18% zinc from 57 metres down-hole. Atac rose $1.16 to $7.25.
Lumina Copper was among the highest gainers, climbing 50¢ to $6 even after executing a royalty spin off. The arrangement has Lumina splitting its royalty segment into a separate entity called Lumina Royalty, with a valuation of $25.7 million.
Lumina Royalty holds royalties on five projects in Chile and Argentina that produce combinations of copper, molybdenum and gold. Lumina Copper’s main asset
remains the Taca Taca copper-gold-molybdenum porphyry deposit in Argentina, which hosts 841 million inferred tonnes grading 0.64% copper equivalent.
Mazorro Resources had one of the highest percentage gains of the period, climbing 65% or 15¢ to 38¢ on 3.6 million shares traded. The company released drill results from the Lapaska property in Quebec, earning a 70% stake from Adventure Gold. Located 20 km east of Val d’Or, initial surface drilling on the property returned 103.4 metres grading 1 gram gold per tonne from 45 metres depth and 156.9 metres
averaging 1.2 grams gold from 25 metres down-hole.
Gold-stream company Sandstorm Gold was one of the busiest stocks of the period, with 10.4 million shares traded as it climbed 10¢ to $1.16. The company announced
positive drill results from its gold-stream partner Luna Gold and released its latest management circular during the period. Sandstorm expects attributable production for 2011 between 13,000 and 18,000 oz. gold, while by 2014 it expects an increase of over 50,000 oz. gold.
Trevali Mining was up 15¢ to $1.50 on progress at its Halfmile zinc-lead-silver-copper deposit in New Brunswick, where production is expected in the third quarter. The company reports that construction is progressing on time, with road construction, site clearing, equipment securing and drilling underwa
y. Trevali’s share price likely got a boost from news that Breakwater Resources, considered the only pure zinc player left on the TSX, is being bought by Nyrstar in a $663-million takeover.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Allana ResAAA108562.201.922.08+0.14
Sandstorm ResSSL104231.221.111.16+0.10
Orko SilverOK81803.252.572.96+0.31
Orbite Expl AORTA73613.422.653.24+0.36
Trelawney M&ExTRR70834.653.874.20+0.28
Dacha Str MtlsDSM69870.850.720.81+0.03
KWG ResKWG64850.090.090.090.00
Seafield ResSFF61410.320.230.24-0.03
IBC Adv AlloysIB56750.210.170.19-0.01
Western PotashWPX54121.581.351.36-0.19
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Firesteel ResFTR450.120.100.12+71.4
Mazorro ResMZO29470.380.210.38+65.2
Getty CopperGTC630.080.080.08+60.0
Canaf GroupCAF900.090.060.09+50.0
Uragold Bay RsUBR10510.040.030.03+50.0
Inter-Rock MnlIRO450.110.110.11+37.5
MazarinMAZH210.040.030.04+33.3
Messina MinlsMMI2570.140.090.12+33.3
Bravada GoldBVA6100.120.080.10+25.0
Garrison IntlGAU12800.050.030.05+25.0
Hudson River MHRM4120.070.050.05-44.4
Baroyeca Go&SiBGS6130.180.100.10-37.5
Olivut ResOLV3561.731.061.08-35.3
U3O8 CorpUWE13720.410.290.30-34.7
Noble Metal GrNMG1390.060.040.04-33.3
Tanqueray ResTQY1880.030.020.02-33.3
AndeanGoldAAU3460.160.110.11-31.2
Cayden ResCYD2713.502.322.40-30.2
MBMI ResMBR3160.100.070.07-30.0
Indicator MinlIME8740.170.120.12-29.4
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Atac ResATC46032667.25+1.16
Bear Creek MngBCM52313415.98+0.93
Lumina CopperLCC1470296.00+0.50
Orbite Expl AORTA73609023.24+0.36
Great Quest MeGQ2522793.63+0.33
Orko SilverOK81799942.96+0.31
Strategic MetlSMD4573253.16+0.30
Trelawney M&ExTRR70826414.20+0.28
Renaissnc GoldREN2092191.90+0.26
Alderon ResADV9851092.84+0.22
Cayden ResCYD2706452.40-1.04
Clifton StarCFO16271722.13-0.84
Rainy River RsRR5496699.20-0.80
Quest Rare MnlQRM22104445.06-0.78
Olivut ResOLV3556531.08-0.59
D Arianne ResDAN16210091.14-0.25
New Pac MetalsNUX3331381.45-0.24
Elgin MngELG37529921.41-0.23
New Millen CapNML12110622.28-0.22
Western PotashWPX54117781.36-0.19
U.S. Markets
Anxiety over the debt crisis in Greece and continuing worries about a market correction characterized the June 13-17 trading week, although U.S. equities performed better than they did in the week-earlier session. The Dow Jones Industrial Average rose 52.45 points to close at 12,004.36, while the S&P 500 Index edged up 0.52 point to 1,271.50. The Philadelphia Gold and Silver Index fell 3.61 points to 190.12.
Potash companies posted the biggest losses, as the U.S. Senate voted to eliminate subsidies for the U.S. ethanol industry. (Corn is used to make the fuel and is a fertilizer-intensive crop.) Mosaic led the way with a drop of US$8.42 to US$59.32, followed by Agrium‘s US$5.61 per share loss to US$79.74. Potash Corp. of Saskatchewan slid US$4.17 to US$50.97.
Gold Reserve surged 28.8% to US$2.99. It says its international arbitration against Venezuela regarding “the illegal expropriation” of its Venezuelan properties was “proceeding well,” and that it was “continuing to pursue the sales of equipment that was purchased for the Brisas project,” which would allow the company to work with its note holders “on a possible restructuring or retirement of the notes.”
Mag Silver added 73¢ to close the week at US$9.14 per share. Financial results for the three months ending March 31 demonstrated that at the end of the first quarter, Mag Silver held working capital of $37.69 million compared with $24.22 million in the year-earlier quarter, including cash-on-hand of $35.46 million compared with $24.25 million in 2010. The company’s net loss for the three months amounted to $1.43 million, compared with a net loss of $2.16 million in the first quarter of 2010.
Alliance Resource Partners advanced 71¢ to US$69.78 per share. The coal producer confirmed its wholly owned subsidiary, Penn Ridge, has no intention to longwall mine under any part of the 400-acre Isaac Manchester farm near Avella, Pennsylvania. “Penn Ridge has not applied for a longwall permit to mine underneath any part of the farm . . . and has no plans to conduct longwall mining operations underneath the site,” ARP’s management said.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA11085615.5014.5914.72-0.56
Freeport McMo*FCX10051950.3847.0647.93-1.00
Mosaic*MOS5531368.9558.8459.32-8.42
Silver Wheatn*SLW4893231.9029.7930.19-1.89
Kinross Gold*KGC4749315.8014.7715.06-0.44
Potash C Sask*POT4521256.3550.6050.97-4.17
Hecla Mining*HL446607.486.876.99-0.39
Arch Coal*ACI4243826.4424.1025.07-0.83
Alpha Nat Res*ANR3790346.5541.1242.12-3.57
Barrick Gold*ABX3602744.5042.7243.18-0.38
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Gold Reserve*GRZ14293.002.272.99+28.8
Paramount Gld*PZG177143.823.303.82+15.7
Samex Mng*SMXMF8151.210.801.09+11.2
Mag Silver*MVG3549.978.729.14+8.6
Brigus Gold*BRD12421.661.511.58+6.0
Midway Gold*MDW4821.951.751.84+5.7
North Am En P*NOA6417.646.947.50+4.6
Ivanhoe Mines*IVN1735223.6121.5522.63+2.9
Tara Gold*TRGD4510.450.290.39+2.6
Goldfield*GV1680.450.400.43+2.3
Starfield Res*SRFDF3690.060.040.05-28.5
Li3 Energy*LIEG12770.290.190.20-28.5
China Shen Zh*SHZ2093.152.302.39-21.1
Tri-Valley*TIV25350.660.540.54-18.1
Alberta Star *ASXSF2210.390.330.33-17.5
Gold Am Mng*SILA5070.060.050.05-16.6
Geovic Mng*GVCM2480.430.360.36-16.2
Silver Dragon*SDRG20000.140.100.11-15.3
Lake Vict Mng*LVCA500.300.260.27-12.9
Mosaic*MOS5531368.9558.8459.32-12.4
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Mag Silver*MVG3539819.14+0.73
Alliance Rs P*ARLP56604369.78+0.71
Gold Reserve*GRZ14288392.99+0.67
Ivanhoe Mines*IVN1735186122.63+0.64
Agnico-Eagle*AEM772844762.10+0.55
Paramount Gld*PZG177144503.82+0.52
North Am En P*NOA6414147.50+0.33
Natural Rs Pt*NRP38690031.00+0.29
Samex Mng*SMXMF8148321.09+0.11
Midway Gold*MDW4820821.84+0.10
Mosaic*MOS5531319959.32-8.42
Agrium*AGU343734979.74-5.61
Potash C Sask*POT4521205050.97-4.17
Alpha Nat Res*ANR3790317042.12-3.57
Cliffs Nat Rs*CLF2001571581.51-3.31
Consol Energy*CNX1521318445.86-2.97
Randgold Res*GOLD425755275.13-2.88
Intrepid Pots*IPI149787229.01-2.50
Cameco Corp*CCJ1806682323.81-2.22
Compass Mnls*CMP51107584.85-2.10
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