Market news

Toronto Stock Exchange

Global markets were relatively flat for the Feb. 13–17 period as investors waited out Greece’s €130-billion bailout from the European Union. The S&P/TSX Composite Index scratched out a 30-point gain to finish up at 12,458.30 for the period. The gain came on the back of the oil sector, which generated positive momentum behind a US$4 rise in  West Texas Intermediate oil prices to US$103.24 per barrel. 

The mining sector performed poorly despite gold reaching lofty heights. The yellow metal finished the period US$2 higher at US$1,725.90 per oz., but that didn’t help gold miners. The S&P/TSX Global Gold Index followed the mining sector trend, down 6 points to 369.43 points. 

The S&P/TSX Capped Diversified Metals & Mining Index also fell for the period, off 21 points to 1,160.01. The prices for copper, aluminum, nickel, tin, lead and zinc were all lower. 

A new discovery at its Kiaka project had Volta Resources riding high for the period with the company’s share price the largest gainer by percent points. Volta shares were up 36% to $1.55 after reporting a new zone just 700 metres southwest of its Kiaka Central Area deposit. Located in Burkina Faso, the new zone returned a 25-metre highlight assay grading 9.22 grams gold. The intercepts occurred near-surface and Volta says mineralization is still open at depth.

St Andrew Goldfields also enjoyed a strong run after announcing it had outlined another 1 million oz. gold at its Taylor gold project near Timmins. The news had the company’s shares up 30% to 52¢. Total measured and indicated resources now stand at 38.3 million tonnes grading 2.58 grams gold for 3.1 million contained oz. gold. Inferred resources came in at 16.2 million tonnes grading 3.97 grams gold for 2.1 million oz. gold. The company has finished a prefeasibility study for the project focusing on the West Porphyry zone.

Atna Resources received a healthy bump to its market cap as its shares were up 18% to $1.18 apiece. Earlier in the month the company said it will start commercial underground mining at its Pinson gold project in Nevada, and that it looked to add an open-pit operation to the mine as well. A maiden resource estimate for the open pit outlined 23.1 million tonnes of measured and indicated resources grading 1.32 grams gold per tonne for 981,700 contained oz. gold. The company also announced that it had extended its $20-million credit facility with Sprott Resource. The deal was originally entered in August 2011 as a way to finance the cash portion of the Pinson mine acquisition and provide the project’s initial development capital. The extension means Sprott will delay a $2.5-million payment due Feb. 29 until next year.

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Kinross GoldK2102111.1910.1910.87+0.08

St Andrew GldfSAS167170.570.410.52+0.12

SemafoSMF158326.806.296.66+0.31

Eldorado GoldELD1564813.7312.8913.49-0.04

Lundin MngLUN152965.164.815.04+0.01

Uranium OneUUU149603.002.662.96+0.20

Barrick GoldABX1385048.4645.9646.83-1.42

Torex GoldTXG121602.262.012.19+0.14

Teck BTCKB1214640.7437.9138.30-1.94

Orbite AlumnaeORT120702.472.062.13-0.13

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(000s)HIGHLOWCLOSECHANGE

Volta ResVTR98531.711.101.55+35.9

St Andrew GldfSAS167170.570.410.52+30.0

Platinum Gp MtPTM19681.541.121.50+29.3

Serabi GoldSBI930.230.190.23+27.7

Chieftain MtlsCFB304.504.304.50+25.0

Carlisle GoldfCGJ37080.250.210.25+19.0

Atna Res LtdATN76071.201.011.18+18.0

Emed MiningEMD13290.210.190.21+16.6

Chalice Gold MCXN2160.290.170.29+16.0

Silver PredatrSPD510.400.340.38+15.1

INV MetalsINV3530.240.190.20-23.0

Bridgeport VntBPV390.510.400.42-19.2

Redzone ResREZ260.430.370.37-17.7

Jayden ResJDN2600.130.110.11-15.3

Orezone GoldORE16683.022.612.67-11.3

Vena ResVEM3740.370.290.33-10.8

Corona GoldCRG490.760.670.67-10.6

Mawson ResMAW7331.411.201.36-10.5

Mediterrn ResMNR8970.190.170.17-10.5

CGA MiningCGA23802.372.112.13-10.5

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Seabridge GoldSEA10471723.85+2.21

Harry WinstonHW100786513.33+1.66

Potash Cp SaskPOT1095995145.95+1.11

Mag SilverMAG9726649.18+1.09

First QuantumFM822017622.24+0.96

GoldcorpG1081397046.81+0.93

AgriumAGU302415582.66+0.92

Chieftain MtlsCFB301204.50+0.90

Cameco CorpCCO668994223.93+0.76

Karnalyte ResKRN1928139.35+0.65

Walter EnergyWLT2664565.40-5.18

Inmet MiningIMN163615063.92-4.10

Franco-NevadaFNV383160542.07-2.33

Allied NevadaANV106436732.03-2.09

Teck BTCKB1214581938.30-1.94

Labdr I-Ore RoLIF_U66869635.94-1.56

Teck ATCKA1723940.00-1.51

Barrick GoldABX1385004646.83-1.42

Tahoe ResTHO40908019.89-0.73

Silver Std ResSSO84619015.90-0.70

TSX Venture Exchange

The S&P/TSX Venture Composite Index was flat for its second week, exchanging an 11-point loss the week prior for a 4.6-point gain in the period to end at 1,658.15. Volume continued to drop from the January exuberance, averaging 106.2 million shares traded a day for a 5-million drop from the week before.

The period’s standout was GTA Resources & Mining, which went on a wild ride following encouraging but not breathtaking results from the Northshore property. GTA, which is earning 70% of the property from Balmoral Resources, hit 150 metres grading 1.2 grams gold, 159 metres averaging 1.05 grams gold and 150 metres grading 0.99 gram gold, all capped. The standout 150-metre intercept carried 3.21 grams gold uncapped, and the majority of holes drilled ended in mineralization. On the news, GTA’s share price shot up $1.30, or 520% on the day to $1.54 before ending the period up $1.01 at $1.22 with 22 million shares traded. Balmoral had a slightly more modest week, ending up a penny at $1.04.  

Encanto Potash continued a February surge, up 10¢ in the period to end at 45¢ for a 19¢ climb so far in the month. Trading volume is also up quite a bit at 17 million shares traded in the period and 10 million shares traded the week before. The big news this month is that Muskowekwan Resources is adding 173.2 sq. km to the joint-venture agreement, and in exchange Encanto is issuing 400,000 shares, 400,000 warrants at 26¢ and $100,000. The package includes treaty land-entitlement lands and pre-reserve lands, and will significantly expand the 62.7-sq.-km joint-venture land package.

Pershimco Resources has seen a strong month, climbing 40¢ so far, including 22¢ in the last period to $1.30. In midday trading the company hit a 52-week high of $1.37. Pershimco recently raised $27 million in a bought-deal private placement for $7 million more than originally planned as it advances its Cerro Quema project in Panama.

Lumina Copper continued its upward push, hitting a new 52-week high of $16.19 in midday trading before ending the period up $1.22 at $15.92. The latest uptick came after the company reported long intercepts from its Taca Taca project, including 813 metres averaging 0.6% copper equivalent and 496 metres carrying 0.87% copper equivalent.

Sparsely traded Nubian Resources got a boost after announcing that Osisko Mining had entered a binding letter of agreement on Global Geoscience’s five Nevada projects, one of which Geoscience is earning into from Nubian. The Osisko-Geoscience deal has Osisko spending US$8 million over four years to earn 45% of the projects, while the Geoscience-Nubian deal has Geoscience spending US$3 million over four years to earn 70% of the Excelsior Springs project. Nubian’s share price more than doubled on the news, climbing 17¢ to 32¢.

TSX-V most active issues

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(000s)HIGHLOWCLOSECHANGE

Encanto PotashEPO169670.470.340.45+0.10

Metals Ck ResMEK156000.170.090.12+0.04

Strike MinlsSTK123000.150.090.10+0.01

Tri Origin ExpTOE112010.100.040.09+0.05

Nevada SunriseNEV106920.250.130.22+0.07

Iberian MnlsIZN95141.101.091.100.00

Cons FortressCFR92470.140.090.100.00

Castillian ResCT87650.090.060.070.00

Royal CoalRDA84910.040.030.030.00

Brilliant ResBMC81880.120.080.09+0.03

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(000s)HIGHLOWCLOSECHANGE

Spruce Ridge RSHL240.240.200.20+400.0

Tri Origin ExpTOE112010.100.040.09+125.0

Nubian ResNBR2360.320.150.32+113.3

Mainstream MnlMJO4610.080.050.05+66.6

Midasco CapMGC830.080.050.08+60.0

Solid ResSRW19130.100.060.09+50.0

Metals Ck ResMEK156000.170.090.12+50.0

Lakewood MngLKW4710.030.010.03+50.0

Red Rock EnrgyRRK4650.130.080.12+50.0

Newcastle MnlsNCM8060.080.050.06+50.0

War Eagle MgWAR5000.250.180.21-52.2

Portal ResPDO12090.060.040.05-37.5

Rec MineralsREC600.060.060.06-33.3

Tumi ResTM610.120.080.08-33.3

Highvista GoldHVV170.350.310.31-31.1

Inform ResIRR450.360.300.30-30.2

Ashburton VentABR15320.060.050.05-28.5

Sierra Madre DSMG1960.090.070.08-27.2

GTO ResGTR250.080.080.08-27.2

Montero Mg&ExMON15170.220.170.17-26.0

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U.S. markets

With a Greek bailout deal in the works and the U.S. economic recovery showing momentum, the appetite for risk returned to U.S. equity markets during the week, pushing the Dow Jones Industrial Average closer to the 13,000-mark last seen in May 2008. The Dow Jones Industrial Index closed at 12,949.87 points, up 148.64, or 1.16%, while the S&P 500 Index reached its highest level since May, closing at 1,361.23 points in an 18.59-point increase, or 1.39%. The Philadelphia Gold and Silver Index was up 1.7 points to 1,723.80.

Seabridge Gold advanced US$2.43 to close at US$23.99 per share, or 11.2% on no news, making it the top gainer. Earlier this month the company announced that the 2011 drill campaign at its KSM project near Stewart, B.C., increased measured and indicated resources by 3.7 million oz. gold to 49 million oz. gold, and added another 0.5 million oz. gold in the inferred category, lifting inferred resources to 14.98 million oz. gold. The KSM project also contains measured and indicated resources of 12.7 billion lbs. copper and 261 million oz. silver.

Harry Winston Diamond shares rose 15.3%, or US$1.78, to US$13.38 each. The company reported that the Diavik diamond mine recovered 1.6 million carats from 0.6 million tonnes of ore last quarter, and 6.7 million diamond carats from 2.2 million tonnes of ore processed for the calendar year.

Goldcorp rose US$1.22 to close at US$47.04. The company reported 687,900 oz. in fourth-quarter gold production at a total cash cost of US$261 per oz., leading to record revenues of US$1.5 billion and operating cash flows before working capital changes of US$831 million. Adjusted net earnings reached US$531 million, or $0.66 per share, compared to US$431 million, or US$0.59 per share, in 2010’s fourth quarter.  

Cliffs Natural Resources fell US$6.55 to US$66.72 despite 2011 revenues hitting a record US$6.8 billion, up 45% from the previous year. Full-year operating income rose to US$2.3 billion, up 85% over 2010’s US$1.3 billion. Net income attributed to shareholders was US$1.6 billion, or US$11.48 per diluted share, up from US$1 billion, or US$7.49 per diluted share, in the prior year.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA11050610.4510.0310.15-0.14

Freeport McMo*FCX10717445.5541.9043.04-1.90

Arch Coal*ACI6351814.4213.2614.19-0.20

Kinross Gold*KGC5310411.2410.1910.95+0.17

Alpha Nat Res*ANR4750921.4519.5920.11-0.93

Barrick Gold*ABX3436548.5245.8947.03-1.12

Potash C Sask*POT2846346.2043.9246.11+1.41

Peabody Enrgy*BTU2731136.7834.1536.14+0.37

Goldcorp*GG2394947.9044.7847.04+1.22

Newmont Mng*NEM2271960.9458.0659.45-0.17

U.S. greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Platinum Gp M*PLG1961.551.131.54+36.2

Uranium Res*URRE137151.210.951.11+16.8

Samex Mng*SMXMF1470.650.550.65+16.0

Harry Winston*HWD46813.3911.5913.38+15.3

Mag Silver*MVG709.368.209.24+14.6

Ur-Energy*URG3321.341.111.31+12.9

Tanz Roy Exp*TRX29893.693.163.60+11.4

Seabridge Gld*SA295625.1421.2023.99+11.2

Uranium Ener*UEC18654.253.834.25+11.2

Legend Intl H*LGDI26680.120.100.12+9.0

Tombstone Exp*TMBXF590.050.040.04-33.3

Silver Dragon*SDRG60160.060.040.05-28.5

Li3 Energy*LIEG15420.140.100.10-23.0

Miranda Gold*MRDDF2220.380.300.30-21.0

Cornerstone C*CTNXF2530.090.090.09-10.0

Oromin Expl*OLEPF3060.970.860.90-9.0

Cliffs Nat Rs*CLF2143774.4364.9066.72-8.9

Radius Gold*RDUFF170.350.330.33-8.3

Douglas Lk Ml*DLKM4290.140.110.11-8.3

Exeter Res*XRA2493.593.263.28-8.1

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Seabridge Gld*SA295614423.99+2.43

Harry Winston*HWD46794713.38+1.78

OM Group*OMG122737730.85+1.76

Agrium*AGU95155182.96+1.55

Potash C Sask*POT2846287946.11+1.41

Molycorp*MCP1364021528.06+1.38

Consol Energy*CNX1720394437.26+1.23

Goldcorp*GG2394935547.04+1.22

Mosaic*MOS1662441855.63+1.21

Mag Silver*MVG703389.24+1.18

Cliffs Nat Rs*CLF2143745866.72-6.55

Walter Energy*WLT261733565.51-4.88

AngloGold Ash*AU790937942.42-2.69

Alliance Rs P*ARLP47622670.83-2.23

Franco-Nevada*FNV74307642.25-2.02

Allied Nevada*ANV54861732.14-1.93

Freeport McMo*FCX10717431343.04-1.90

Rio Tinto*RIO321544157.43-1.90

Teck B*TCK1667092538.44-1.75

Randgold Res*GOLD1925563111.05-1.52