Toronto Stock Exchange
The August 15-19 period brought more hard times for investors in Canadian stocks as the S&P/TSX Composite Index resumed its downward plunge, falling 619 points to finish just a shade above the 12,000 mark at 12,007.47 points.
The lone feel-good story was that of gold, as the precious metal continued to shine bright as the global economy whimpered and wobbled around. The metal finished the period at US$1,852.20 per oz. – good enough for a 6% gain, or US$105 per oz.
The bad news for investors who play gold prices via gold miners, was that such historic gains weren’t, for the most part, passed on to the companies that mine the metal. Investor preference continued to be restricted to the metal itself as evidenced by the Global Gold Index only climbing 15 points to 413.45 points – a 3.8% gain.
Still, holding gold miners was a better business than holding miners of others metals. The Capped Metals & Mining Index was off 135 points to 1,096.49 as fears of a global recession lowered prices for copper, aluminum, nickel, tin and lead.
Lake Shore Gold shares shot up 19% to $2.29 after it extended gold mineralization 400 metres below its current resource. The company said the results could add to the resource base at its Bell Creek Complex and that the structures remain open at depth and along strike.
The drill was also kind to Claude Resources, as a possible new gold zone at its Seabee gold mine sent its shares 18% higher to finish at $1.86. Highlights from the program include 8.81 grams gold per tonne over 4.9 metres and 6.9 grams gold over 10 metres. Claude said the results point to the discovery of a new gold-bearing structure and that it will drill 86,500 metres at the site this year.
Mid-August wasn’t so kind to Labrador Iron Mines. The company, which reported its first quarter financial results in the period, saw its share price drop by 20% to finish at $7.88. The company’s financial results included a loss of $4.7 million, or 9¢ per share, compared to a loss of $900,000 or 2¢ per share for the first quarter of the prior year. The company blamed increased losses on a $3.5-million transportation expenses. That cost was paid out prior to the company establishing full-scale transportation of iron ore to the port.
Noventa also fell on hard times as the company’s shares were off 20% to 49¢ after announcing a financing that sold its shares for less than their current market value. The deal called for the issuance of 73.6
million shares for 25 British pence, which equates to roughly 40¢ in Canada – the price where its shares were migrating to. Noventa said the roughly $30-million financing would let it complete the construction and commissioning of an expanded plant at its Marropino mine by the end of 2011.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Kinross GoldK2913616.7415.2916.64+1.15
Lake Shore GldLSG217312.361.912.29+0.36
Lundin MngLUN210365.925.005.00-0.62
Eastern PlatinELR208120.810.720.760.00
Yamana GoldYRI1894615.6914.4715.31+0.63
Eldorado GoldELD1553119.6018.5719.21+0.28
Barrick GoldABX1536850.7448.4350.32+1.20
Teck BTCKB1386744.1337.8037.95-5.15
First QuantumFM1354225.1120.8921.21-2.75
GoldcorpG1274251.1848.7251.18+1.73
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Velocity MinlsVLC460.150.120.15+50.0
TriAusMinTOR2280.140.120.12+33.3
American BonanBZA27810.570.370.47+20.5
Crescent GoldCRA15620.070.060.06+20.0
Marengo MngMRN5020.250.230.25+19.0
Lake Shore GldLSG217312.361.912.29+18.6
Claude ResCRJ28402.001.571.86+18.4
Aureus MngAUE2751.451.101.40+16.6
United SilverUSC2950.580.490.58+16.0
Scorpio MiningSPM60972.041.722.00+14.9
Rockgate CapRGT11461.741.241.25-27.7
Caledonia MngCAL35680.110.060.08-27.2
Inspiration MgISM1860.220.170.17-22.7
Liberty MinesLBE14740.090.070.08-20.0
Labdr Iron MnsLIM94910.347.887.88-19.6
NoventaNTA3170.660.450.49-19.6
Magma MetalsMMW1620.210.170.17-19.0
PlatminPPN1680.480.370.37-17.7
MalagaMLG12540.220.190.19-17.3
TVI PacificTVI60290.060.050.05-16.6
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Central Gold-TGTU_U4417073.90+6.33
Agnico-EagleAEM576588364.97+2.98
Central FundCEFA103937425.44+2.25
Detour GoldDGC382824032.33+2.01
Sprott Ph SilvPHSU45738319.96+1.89
GoldcorpG1274237251.18+1.73
Seabridge GoldSEA6890329.67+1.42
Kirkland Lk GdKGI120564518.69+1.39
Newmont MngNMC5194358.34+1.35
Barrick GoldABX1536825350.32+1.20
Walter EnergyWLT1870273.21-7.16
AgriumAGU379342775.88-7.11
Inmet MiningIMN117398254.23-5.19
Teck BTCKB1386678937.95-5.15
Teck ATCKA1485339.10-5.13
Potash Cp SaskPOT1125387850.13-3.98
First QuantumFM1354243721.21-2.75
Ivanhoe MinesIVN339062417.99-2.65
Russell MetalsRUS66369721.25-2.14
Labdr Iron MnsLIM9485747.88-1.93
TSX Venture Exchange
Uncertainty and caution continued to disrupt markets in the period as the S&P/TSX Venture Composite Index dropped 52.52 points to 1,764.84 points. While up from a low of 1,682 points in early August, there is little sign of a market rally for junior explorers despite rocketing gold and silver prices. Trading for the period was some of the lowest seen recently averaging just 69 million shares traded daily.
Long-awaited drill results helped make Majescor Resources one of the biggest percentage gainers of the period, up 9¢ or 56% to 25¢ on 4.3 million shares traded. Results from the company’s 2009 drill program at its Somine gold-copper project in Haiti included a 10.5-metre interval grading 77 grams gold per tonne and 0.17% copper, including a 1.5-metre section grading 537 grams gold, and another drill hole hit 6 metres carrying 3 grams gold. The company controls roughly 66.5% of the project.
For the second time in a month trading in Goldex Resources shot up significantly with 13 million shares changing hands, and over 10.6 million of those traded on the day it released preliminary results from its flagship El Pato property in Guatemala. In the results, hole 10 hit 30.5 metres grading 5.04 grams gold from 98 metres depth, including 9.2 metres grading 12.38 grams gold. In late July the company saw over 11 million traded on no news leading to a 2¢ bump, while the latest activity had the company’s share price ending even in the period at 7.5¢.
GoGold Resources had the second biggest value gains of the week, up 44¢ to $1.82, as it continues an upward climb. In July, its shares were at 90¢, and traded as low as 20¢ late last year before the company acquired exploration ground in Mexico in February. Since acquiring the San Diego project, the company has been sampling and trenching, and recently launched an 11,000-metre drill program, and started a 1,500-metre drill program on its Rambler gold-copper project in Newfoundland.
Prophecy Platinum had the biggest value gain, up 61¢ to $4.20 in a period in which it released its annual information form. The company’s share price initially shot up
from 70¢ to $5.63 on a major resource estimate for its Wellgreen nickel-PGM project in the Yukon, while it has fluctuated quite a bit since then. Prophecy Platinum recently hosted analysts and investors for a project visit, while on Aug. 22 the company announced it hit 472 metres grading 0.43% nickel equivalent in hole 11-184.
Canaco Resources was third in value gains with a 41¢ climb to $3.09 on 3.6 million shares traded. The company is expanding a drill program at its Handeni gold project in Tanzania by 95,000 metres, nearly doubling the total it is targeting for the end of June 2012. Canaco also arranged a $5-million preliminary economic assessment program for the project, also to be completed by June 2012.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Goldex ResGDX135410.120.080.08-0.01
Allana ResAAA83051.521.291.29-0.10
US SilverUSA79540.720.640.69+0.06
BCGoldBCG68260.160.090.12+0.04
Sandstorm ResSSL65481.451.311.35-0.04
Galway ResGWY64841.491.181.45+0.26
Gold World ResGDW62790.080.050.06+0.01
XmetXME52140.120.100.110.00
Quantum RE DevQRE49200.340.270.280.00
Orbite Expl AORTA49002.982.292.38-0.51
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Abbastar ResABA860.140.120.14+250.0
Roscan MinlsROS530.120.100.10+100.0
New Shoshoni VNSV34480.050.030.05+66.6
Majescor ResMJX44070.290.140.25+56.2
Richmond MnlsRMD2060.030.020.03+50.0
BCGoldBCG68260.160.090.12+50.0
Sea Green CapSGS720.040.030.03+50.0
Whetstone MnlsWMI4560.170.110.17+41.6
Trio Gold CorpTGK5090.070.050.07+40.0
Colstar VentCTR730.250.210.22+37.5
Golden HarpGHR290.100.080.08-38.4
Champlain ResCPL2600.070.050.05-37.5
Stakeholdr GldSRC1420.290.180.19-34.4
El Nino VentELN36410.060.040.04-33.3
Teslin Rvr ResTLR310.070.060.06-33.3
Pac Arc ResPAV800.120.100.10-33.3
Augen CapitalAUG2080.070.060.06-33.3
Laurentian GlfLGF8760.200.140.14-33.3
Zinccorp ResZN5970.090.060.06-33.3
Indicator MinlIME25580.060.040.04-33.3
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Prophecy PlatNKL25126054.20+0.61
Gogold ResGGD3609301.82+0.44
Canaco ResCAN36347923.09+0.41
Orko SilverOK15745552.62+0.37
Cayden ResCYD1061122.53+0.33
Ascot ResAOT7992601.36+0.32
Palladon VentPLL1124151.75+0.31
Adriana ResADI10783811.04+0.26
Galway ResGWY64838381.45+0.26
Amarillo GoldAGC2443021.50+0.25
Rainy River RsRR9953909.57-0.93
Atac ResATC5663718.17-0.83
Quest Rare MnlQRM7700094.01-0.69
Tasman MetalsTSM5062653.40-0.65
Orbite Expl AORTA49000172.38-0.51
Pac Booker MinBKM207639.11-0.39
Great Quest MeGQ2249902.74-0.31
Geomega ResGMA619072.06-0.31
Maudore MinlsMAO1223934.70-0.30
Energold DrillEGD5103624.13-0.23
U.S. Markets
Anxiety overtook investors on Wall Street as the Dow Jones Industrial Average posted its fourth week of losses during the Aug. 15-19 trading period.
The index tumbled 451.37 points to close at 10,817.65 amid lingering concerns of
a double-dip recession, weak global
economic growth and the debt crisis in Europe.
The S&P 500 Index fell 55.28 points to 1,123.53 and the Nasdaq Composite Index slipped 166.14 points to 3,241.84. The
Philadelphia Gold and Silver Index rose 3.89 points to 210.44. The price of gold gained US$106.80 over the week to end up US$1,853.10 per oz.
Gold miners continued to shine. Rangold Resources for the third week was the biggest value gainer, adding US$9.24 to close at US$109.99. Shares of Agnico-Eagle Mines gained US$3.04 to US$65.57, while Buenaventura rose US$2.69 to US$44.37. The latest news that Buenaventura released was on Aug. 8, saying it
received permits from the Peruvian government to start operations at its 40%-owned Tantahuatay gold project, which is expected to produce 100,000 oz. gold per year.
The week’s biggest percentage loser was Caledonia Mining following news Zimbabwe’s indigenization minister asked the Minister of Mines to cancel the company’s operating licence at its Blanket gold mine. The company says it was told that its indigenization proposal did not meet requirements, and is seeking clarification from the government. Its shares plunged 30% to US7¢.
On Aug. 15, Kinross Gold announced a US$1-billion offering of debt securities. The offering is expected to close on Aug. 22, and should generate net proceeds of about US$986 million. Kinross plans to put that cash towards general corporate purposes. A day later, Kinross said it was giving US$1 million in funding for a three-year endowment that would be used to train mining engineering students at
the University of Alaska. Kinross gained US$1.19 to US$16.79 on 39.6 million shares traded.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA12350912.6011.1111.21-1.05
Freeport McMo*FCX9525247.5941.7641.94-3.46
Barrick Gold*ABX4313451.6249.1150.78+1.22
Hecla Mining*HL427747.576.977.10-0.13
Kinross Gold*KGC3964416.9915.5216.79+1.19
Potash C Sask*POT3776856.2250.6050.65-3.95
Newmont Mng*NEM3559260.8156.5060.08+2.64
Alpha Nat Res*ANR3385434.5528.3028.94-3.30
Silver Wheatn*SLW3324739.4736.4538.44+1.15
Arch Coal*ACI3300321.4217.3317.42-2.90
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Apolo Gold*APLL390.200.090.20+122.2
Infrastrc Mat*IFAM1700.110.060.10+42.8
America West*AWSR280.880.600.88+17.3
Claude Res*CGR25742.011.611.86+16.2
Canarc Res*CRCUF1100.150.120.15+15.3
Gold Reserve*GRZ6212.552.032.53+11.9
Central Fund*CEF1125325.9123.3825.82+9.9
Randgold Res*GOLD5284110.07100.19109.99+9.1
New Gold*NGD2020913.0011.3112.47+9.0
AuRico Gold*AUQ160013.7012.3113.42+8.0
Caledonia Mng*CALVF42830.120.060.07-30.0
Lake Vict Mng*LVCA1290.150.120.12-25.0
Li3 Energy*LIEG29930.130.100.10-16.6
Tombstone Exp*TMBXF2150.070.050.05-16.6
Rare Elemt Re*REE504710.008.108.16-14.7
Silver Dragon*SDRG5040.130.110.12-14.2
Harmony Gold*HMY1970413.7811.9011.96-14.2
Arch Coal*ACI3300321.4217.3317.42-14.2
Quest Rare Mn*QRM12954.884.024.05-14.1
Patriot Coal*PCX508815.3512.2712.28-14.0
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Randgold Res*GOLD5283836109.99+9.24
Agnico-Eagle*AEM1166477365.57+3.04
Buenaventura*BVN744475444.37+2.69
Newmont Mng*NEM3559174460.08+2.64
Central Fund*CEF1125325525.82+2.33
AngloGold Ash*AU845296645.84+2.02
Seabridge Gld*SA145344830.17+1.76
Goldcorp*GG3161353651.65+1.73
Royal Gold*RGLD396090370.00+1.70
Barrick Gold*ABX4313446750.78+1.22
Cliffs Nat Rs*CLF1956447067.64-9.56
Walter Energy
*WLT227754174.15-7.34
Agrium*AGU262670276.64-7.04
Peabody Enrgy*BTU2778530542.91-5.32
Compass Mnls*CMP49634872.25-5.26
Teck B*TCK2019982638.35-5.11
BHP Billi-BBL*BBL1049413660.93-4.62
Potash C Sask*POT3776814450.65-3.95
Cabot Corp*CBT209466329.50-3.80
Freeport McMo*FCX9525162141.94-3.46
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