Market news

Toronto Stock Exchange

The S&P/TSX Composite Index dropped 549 points to 12,945.63 during the July 25-29 trading period, as the U.S. and Canada posted weak economic data, with most eyes focused on the U.S. debt talk gridlock. 

The price of gold gained US$26.90 to US$1,627.20 per oz. as investors sought safer assets, fearing that the world’s largest economy may default. That gain didn’t stop the Global Gold Index from sliding 20.9 points to 376.21. Similarly, the Capped Metals & Mining Index tumbled 60.46 points to end at 1,387.31. 

Golden Predator was the week’s largest percentage gainer, jumping 25.4% to $1.33 per share on the back of long gold hits from the new Sleeman zone at its flagship Brewery Creek project in the Yukon. Notable intercepts include 192 metres grading 1.46 grams gold per tonne, 40 metres at 1.21 grams gold and 24 metres at 1.65 grams gold. Golden Predator plans to increase its 2011 exploration budget by $1.5 million to a total of $7.5 million. The company also began a 1,500-metre diamond drill program at its Harlan gold project in the Yukon’s Selwyn Basin district.

Agnico-Eagle Mines‘ $70-million investment in Rubicon Minerals helped lift Rubicon’s shares 25.2%, or 81¢, to $4.02 on 10.1 million shares traded. Agnico-Eagle will buy 21.6 million Rubicon shares at $3.23 apiece, and as a result, will own 9.2% of Rubicon’s outstanding shares. The proceeds will go towards developing the F2 Gold System at Rubicon’s Phoenix gold project in Red Lake, Ont. Rubicon completed a positive preliminary economic assessment for the project in late June. The study envisioned the F2 Gold System producing 180,000 oz. gold a year for 12 years. 

Strong second quarter results pushed New Dawn Mining up 22.8% to $1.40 apiece. The Zimbabwe-focused miner produced 6,841 consolidated oz. gold and had consolidated gold sales of US$9.7 million, a 9.9% and 22.7% increase, respectively, compared to the previous quarter. 

Also on strong operating results for the quarter, Alacer Gold gained 60¢ to $9.28 per share. Alacer’s Higginsville, South Kalgoorlie and Frog’s Leg gold mines in Australia, and its new Copler gold mine in Turkey, produced 101,348 attributable oz. gold, up 11% increase over the previous quarter. The mines generated US$89 million in cash operating margin, while group cash operating costs came at US$542 per oz. 

 Lake Shore Gold was the week’s most actively traded stock, with 23.9 million shares traded, gaining 22¢ to $2.17 per share. The company released results from 29 holes at its Thunder Creek gold project. It says the results define and extend the project’s mineralization, and also identify a potential gold zone. The miner announced that its shares will start trading on the NYSE Amex stock exchange on Aug. 1. 

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Lake Shore GldLSG239012.452.152.17-0.22

Uranium OneUUU234463.823.303.37-0.14

Lundin MngLUN233107.256.757.18+0.32

Kinross GoldK2134016.8615.5715.60-1.09

GoldcorpG1936252.3045.3345.69-5.78

Yamana GoldYRI1422412.9512.3512.44-0.28

Eastern PlatinELR129441.010.891.00+0.01

Eldorado GoldELD1074117.9816.3616.45-1.04

Great Basin GoGBG101482.111.901.91-0.13

Rubicon MnrlsRMX101124.073.054.02+0.81

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Golden PredatrGPD92201.461.051.33+25.4

Rubicon MnrlsRMX101124.073.054.02+25.2

New Dawn MngND381.491.121.40+22.8

Silvermex ResSLX72800.880.620.73+19.6

Energizer ResEGZ20250.340.270.32+18.5

Crescent GoldCRA19180.070.060.07+16.6

Moneta PorcpnME3430.280.230.28+16.6

Homeland EnrgyHEG10490.080.070.08+14.2

Formation MtlsFCO6411.301.001.19+13.3

Lupaka GoldLPK4861.351.131.30+13.0

First UraniumFIU50260.620.410.41-30.5

Diamond FieldsDFI4820.380.280.31-20.5

Mawson ResMAW3202.151.651.72-18.4

INV MetalsINV1030.550.450.45-18.1

Golden MnlsAUM3817.1513.8213.90-17.9

OceanaGoldOGC43862.952.242.40-17.2

Mines ManagmntMGT242.101.811.82-16.8

Orvana MnrlsORV21852.532.012.03-16.8

Forsys MetalsFSY5071.541.261.26-15.4

ECU Silver MngECU20770.850.690.71-15.4

TSX greatest value change

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VOLUMECLOSECHANGE

Horizns G BearHGD318431510.25+1.01

Rubicon MnrlsRMX101120654.02+0.81

Alacer GoldASR33530539.28+0.60

Chieftain MtlsCFB3884224.93+0.43

Franco-NevadaFNV183118739.95+0.41

Detour GoldDGC272311830.03+0.33

Intl Minls CrpIMZ2183927.47+0.33

Lundin MngLUN233102437.18+0.32

Karnalyte ResKRN14740312.85+0.30

ISh COMEX G TrIGT15145715.16+0.30

Agnico-EagleAEM417219653.14-6.98

First QuantumFM1505847132.46-6.71

GoldcorpG1936230645.69-5.78

Inmet MiningIMN165619065.99-5.01

AgriumAGU255760383.61-4.31

Potash Cp SaskPOT928275055.16-3.34

Pan Am SilverPAA98258128.83-3.25

Teck ATCKA1051548.10-3.05

Silver WheatonSLW831501834.41-3.04

Golden MnlsAUM3759813.90-3.03

TSX Venture Exchange

The recent positive trend on the S&P TSX Venture Exchange reversed in the July 25-29 period as the U.S. debt crisis escalated. The venture dropped on all five trading days to close down 80.51 points at 1,979.10 points. Trading was light, with an average 77.4 million shares traded daily.

In Yukon news, Manson Creek Resources was very busy after reporting it had discovered three natural spring gossans on its Tell property that sit immediately south of Atac Resources‘ Rau claims. Manson shares shot up from 8¢ to a brief high of 36¢, before ending the period at 18¢ on 23 million shares traded, making it the most traded and highest percentage-gaining company on the venture. The gossans extend more than 600 metres east-west, with the company reporting that they bear similarities to the Ocelot mineralization recently identified by Atac.

BE Resources had another active week, after jumping 782% the week before on misstated results. Regulators cancelled all trades on July 22 after the company clarified that several results were overstated by at least a factor of 10. Despite the cancellation, BE climbed as high as 39¢ before ending the period up 5¢ at 14¢, with 19.8 million shares traded. After the clarification, the highest grade reported was 1.95% total rare earth oxides over 30 metres from 353 metres downhole, compared with the previously reported 19.58%.

 A significant funding injection had Palladon Ventures climbing 27¢ to end at $1.49, becoming the second-highest value gainer on the venture. The company’s partner on the Iron Mountain iron ore project in Utah secured a second US$20-million tranche from a US$45-million loan that should cover concentrator-building at the site. Palladon put the project into production in 2010, but only as a direct shipping project sending ore to China. Iron Mountain hosts 34 million tonnes grading 44.9% iron. Tangshan has also taken a 10% stake in the company for $18 million.

Philippine Metals got a boost after arbitrators ruled it had the right to the Malitao exploration permits that were suspended last September. Shortly before the permits were challenged the company hit a high of 54¢. It hit 9¢ as the permits remained suspended. On news of the positive ruling, the company’s share price jumped up briefly to 20¢, before ending
the period at 13¢ for a 44% gain. Earlier this year, the company lost the exploration permit on its Dilong project due to lack of use, and decided not to drill on its Taurus project.

Prophecy Platinum was heavily traded for another week, with 14.2 million shares traded as investors continued to react to a recent resource estimate on its Wellgreen polymetallic project in the Yukon. After climbing from 74¢ to $5.32, the period saw the company lose $2.35 to end at $2.97. 

TSX-V most active issues

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(000s)HIGHLOWCLOSECHANGE

Manson CreekMCK231230.360.080.17+0.11

BE ResBER197800.390.120.14+0.04

Goldex ResGDX173830.130.080.09+0.01

Prophecy PlatNKL142145.502.682.97-2.35

Prophecy CoalPCY135211.000.620.63-0.33

Galway ResGWY90981.401.091.21-0.02

Great WesternGWG83460.980.830.88-0.07

Alexander NubiAAN76360.100.070.090.00

Sandstorm Mt&ESND75850.620.550.56-0.04

Brookemnt  CptBKT75430.220.140.19+0.05

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Manson CreekMCK231230.360.080.17+183.3

Eureka ResEUK1040.200.170.17+54.5

Actus MnlsAAC800.090.060.09+50.0

Big Red DiamDIA4210.030.020.03+50.0

Indico ResIDI2830.480.350.48+45.4

Philippine MtlPHI9790.200.100.13+44.4

BE ResBER197800.390.120.14+40.0

Randsburg IntlRGZ2210.070.050.07+40.0

Novus GoldNOV4490.150.100.14+40.0

Endurance GoldEDG1450.180.130.18+38.4

Prophecy PlatNKL142145.502.682.97-44.1

Prophecy CoalPCY135211.000.620.63-34.3

Knight ResKNP600.220.150.16-33.3

Nunavik NickelKZZ200.500.200.20-33.3

Uranium ValleyVZZ200.500.200.24-31.4

Riva GoldRIV4430.820.590.59-30.5

Batero GoldBAT22903.772.512.60-29.5

TiexTIX1400.170.120.12-29.4

Newmac ResNER1400.050.050.05-28.5

Champlain ResCPL4180.080.050.05-28.5

TSX-V greatest value change

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Chesapeake GldCKG5201911.69+0.55

Palladon VentPLL2266851.49+0.27

Olivut ResOLV5717981.95+0.26

Lumina CopperLCC1398137.19+0.24

Gogold ResGGD4215591.38+0.22

Indico ResIDI2830000.48+0.15

West KirklandWKM1423161.20+0.12

BCM ResB932800.48+0.11

Manson CreekMCK231230300.17+0.11

NV GoldNVX1200000.40+0.10

Prophecy PlatNKL142142542.97-2.35

Batero GoldBAT22903172.60-1.09

Bear Creek MngBCM11120254.80-0.84

Strategic MetlSMD12828313.42-0.66

Abitibi RoyaltRZZ930942.50-0.65

Tasman MetalsTSM6369674.17-0.60

Quest Rare MnlQRM10208305.22-0.57

Hana MngHMG4676852.08-0.46

Orbite Expl AORTA46293503.16-0.45

New Milln IronNML8003902.34-0.43

U.S. markets

With President Barack Obama set to sign-off a long-awaited debt bill at presstime, the protracted battle between Democrats and Republicans over requirements attached to raising the debt ceiling disturbed markets for the July 25-29 period.

The political squabbling and the threat of the U.S. missing payments on some if its key obligations helped push the Dow Jones Industrials down 536 points, while the S&P 500 Index was off 52 points, and the Nasdaq Composite Index was down 76 points.

Agnico-Eagle’s $70 million investment in Rubicon Minerals helped make Rubicon one of the period’s hottest stocks. Rubicon shares were up 25% to US$4.20, after it said the private placement of common shares had closed. Rubicon owns the Phoenix project in the Red Lake mining district of Ontario. The company released a preliminary economic assessment on the
project at the end of June that envisioned mining 2 million oz. gold at cash costs of US$519 per oz. 

Word that Silver Dragon Resources started production received traction with investors. The company’s shares were up 8% to 14¢ for the period. Silver Dragon announced on July 12 that it had begun production at its Erbahuo silver mine, located in Inner Mongolia, China. The Erbahuo mine is 70%-owned by Silver Dragon, and expected to turn out 160,000 oz. silver by year-end.

Higher costs for mining metallurgical coal meant a lower market valuation for Patriot Coal shares. The company saw its share price fall 24%, to close the period at US$18.91. The sell-off came after it released second quarter results that showed continued losses for the miner. The higher costs for met coal production were tied to higher selling fees and labour costs, and came as the company executes its strategy to raise met coal production to 35% of its total coal production. Those higher costs helped contribute to the company’s twelfth straight quarterly loss. Patriot said it lost US$12.4 million, or 14¢ per share, compared with 2010’s loss of US$13.6 million, or 15¢ per share. Met coal prices averaged US$315 per tonne in the second quarter. 

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA9245615.7814.5014.73-1.10

Freeport McMo*FCX6625456.7852.1852.96-2.71

Goldcorp*GG4478655.2347.6647.81-6.42

Silver Wheatn*SLW4108340.2435.4336.08-3.43

Arch Coal*ACI3701528.4024.3325.60-3.01

Barrick Gold*ABX3663251.0047.2547.57-2.68

Potash C Sask*POT3632862.6057.0157.81-3.83

Kinross Gold*KGC3419417.8116.2916.34-1.24

Newmont Mng*NEM3409059.5755.3755.61-3.05

Hecla Mining*HL327718.657.657.77-0.57

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Gold Am Mng*SILA5580.050.030.04+33.3

Starfield Res*SRFDF10080.060.050.05+25.0

Rubicon Mnls*RBY118064.253.214.20+24.6

Linux Gold*LNXGF9150.060.040.06+20.0

America West*AWSR1551.120.981.12+9.8

Silver Dragon*SDRG21300.150.110.14+7.6

Alum Cp China*ACH92722.0519.6621.36+6.1

Gold Fields*GFI2443715.8015.1915.59+0.9

Mountain Prov*MDM535.655.365.59+0.9

Central Fund*CEF864624.3923.3923.84+0.5

Grandview Gld*GVGDF850.080.050.05-37.5

Tombstone Exp*TMBXF2790.070.050.06-25.0

Patriot Coal*PCX751624.7418.5218.91-24.0

Golden Phoen*GPXM17260.170.120.12-20.0

Uranium Res*URRE65651.721.451.45-16.1

Mines Managem*MGN5732.351.891.93-15.7

Almaden Mnls*AAU13573.953.303.30-15.6

Minco Gold*MGH12051.901.511.56-14.7

Tri-Valley*TIV16790.560.470.48-14.2

Alexco Res*AXU20948.707.317.44-13.2

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Alum Cp China*ACH92733221.36+1.23

Rubicon Mnls*RBY118061524.20+0.83

Randgold Res*GOLD282179790.81+0.18

Gold Fields*GFI2443713415.59+0.14

Central Fund*CEF864648223.84+0.12

America West*AWSR1549941.12+0.10

Mountain Prov*MDM528835.59+0.05

Yanzhou Coal*YZC79501038.30+0.05

Gold Am Mng*SILA5576150.04+0.01

Linux Gold*LNXGF9154000.06+0.01

Cliffs Nat Rs*CLF1833445889.82-10.04

Walter Energy*WLT1442085122.57-9.14

Agnico-Eagle*AEM1549037155.75-7.60

Compass Mnls*CMP56300178.74-7.40

Goldcorp*GG4478626247.81-6.42

Patriot Coal*PCX751578918.91-5.97

Agrium*AGU158133987.38-5.18

Alpha Nat Res*ANR2519318042.71-4.35

Peabody Enrgy*BTU2120505957.47-3.90

Potash C Sask*POT3632757757.81-3.83