Market news

Toronto Stock Exchange

The S&P/TSX Composite Index was off 278 points to 12,103.11 for the holiday-shortened period despite a solid job creation report from Statistics Canada. The report showed far more jobs were created in March than economists had predicted.

But investors seemed to put more stock in negative news outside of Canada’s borders.

A poor bond auction out of Spain and bad U.S. payroll results had investors questioning the strength of the recent global economic recovery.

Commodities found little favour with investors as gold fell US$41 to US$1,630.10 per oz., and the S&P/TSX Global Gold Index went down 24 points to 311.36 points.

The diversified miners followed the same trend. The S&P/TSX Capped Metals & Mining Index was off 28 points to finish at 1,022.20 with the prices for copper, aluminum, tin and lead all falling, while nickel and zinc prices edged higher.

Gabriel Resources is struggling to put its large Rosia Montana gold project in Romania into production. The latest word out of the Eastern European country was that a court had annulled a zoning plan, which could delay the project further. Project development has been ongoing for 14 years and still requires a key environmental permit. The court annulled the company’s town planning documents after a trial was brought by two non-governmental organizations opposed to the project. Gabriel shares were off 25% to $3.53 for the period.

Rockgate Capital shares also took a tumble on political risk, as a coup d’état in Mali led the company to suspend drilling at its Falea project in the country. The company says drill crews have been moved across the border to Senegal to avoid sanctions that may be imposed on Mali by its neighbours. The sanctions could close the country’s borders and cut off supplies. Rockgate shares were off 18% to 72¢ for the period.

A proposed merger between First Majestic Silver and Silvermex Resources helped lift the latter’s fortunes. Silvermex shares climbed 15% after the deal was announced. First Majestic is looking to acquire Silvermex’s flagship La Guitarra project in Mexico — an asset that First Majestic says will help take it to the next tier of silver producers. The offer values Silvermex at 60¢ per share, or a 33% premium to its closing price on April 2. First Majestic shares finished the period 6% lower at $15.60.

IC Potash managed an 11% gain to 99¢ after striking a deal to sell a 19.9% stake in the company to Norwegian fertilizer-maker Yara for $39.9 million. Yara will pay $1.32 a share, or a 50% premium, for 30.1 million new shares of IC Potash. As part of the deal, Yara is entering an offtake arrangement for 30% of all products produced by IC Potash’s Ochoa sulphate of potash mine in New Mexico over 15 years.

TSX most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Lake Shore Gld LSG 79717 1.18 0.93 0.95 – 0.08

Eastern Platin ELR 29327 0.40 0.32 0.395 – 0.01

Avion Gold AVR 21409 1.08 0.82 0.86 – 0.16

Kinross Gold K 15936 10.03 9.07 9.15 – 0.60

Silvermex Res SLX 14531 0.58 0.43 0.54 + 0.07

Eldorado Gold ELD 14282 13.98 12.70 12.75 – 0.95

Goldcorp G 13638 46.08 40.23 40.60 – 4.36

Barrick Gold ABX 12211 44.13 40.17 40.51 – 2.84

Yamana Gold YRI 12198 16.03 14.61 14.77 – 0.79

Lundin Mng LUN 12191 4.52 4.19 4.41 – 0.06

TSX greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Starfield Res SRU 4800 0.03 0.01 0.02 + 33.3

Horizns G Bear HGD 1580 11.99 10.01 11.96 + 15.6

Silvermex Res SLX 14531 0.58 0.43 0.54 + 14.8

BioteQ Env BQE 185 0.19 0.165 0.19 + 11.7

IC Potash ICP 7480 1.11 0.93 0.99 + 11.2

SouthGobi Res SGQ 4981 7.77 7.16 7.33 + 10.7

Ursa Major Min UMJ 424 0.12 0.10 0.11 + 10.0

Red Cresc Res RCB 27 0.12 0.09 0.12 + 9.0

Ivernia IVW 1183 0.13 0.12 0.125 + 8.7

Paramount Gold PZG 174 2.57 2.27 2.44 + 7.9

Gabriel Res GBU 6118 4.99 3.47 3.53 – 24.7

New Pac Metals NUX 125 0.98 0.70 0.72 – 23.4

Augusta Res AZC 1734 2.73 2.14 2.19 – 19.7

Rockgate Cap RGT 946 0.88 0.69 0.72 – 18.1

White Tigr Gld WTG 776 0.44 0.38 0.39 – 17.8

Acadian Mng ADA 14 0.15 0.15 0.15 – 16.6

Serabi Gold SBI 24 0.18 0.15 0.15 – 16.6

Keegan Res KGN 2549 3.79 3.14 3.15 – 16.6

Crosshair Engy CXX 139 0.48 0.41 0.42 – 16.0

Dejour Enterp DEJ 250 0.38 0.29 0.295 – 15.7

TSX greatest value change

WEEK

VOLUME CLOSE CHANGE

Horizns G Bear HGD 1579942 11.96 + 1.62

Agrium AGU 2174644 86.80 + 0.71

SouthGobi Res SGQ 4980565 7.33 + 0.71

First Quantum FM 9240692 19.69 + 0.67

Karnalyte Res KRN 211494 10.26 + 0.66

Pretium Res PVG 2871864 14.67 + 0.41

Foraco Intl FAR 25177 4.90 + 0.32

Copper Mtn Mng CUM 2104525 4.52 + 0.31

Paramount Gold PZG 173965 2.44 + 0.18

Mountain Prov MPV 133520 5.40 + 0.14

Goldcorp G 13638131 40.60 – 4.36

Royal Gold RGL 27813 61.21 – 2.90

Barrick Gold ABX 12210697 40.51 – 2.84

Franco-Nevada FNV 2164994 40.11 – 2.78

Allied Nevada ANV 993671 30.00 – 2.41

Inmet Mining IMN 1271875 54.22 – 2.18

Silver Wheaton SLW 4801887 31.04 – 1.95

Ivanhoe Mines IVN 6611049 13.76 – 1.93

Newmont Mng NMC 12328 50.69 – 1.87

Centerra Gold CG 2321795 13.66 – 1.85

TSX Venture Exchange

The period was not good for the S&P/TSX Venture Composite Index, which fell 85.35 points to end at 1,481.04. The drop put the index back where it was at the beginning of the year, having dropped 215 points since reaching a 2012 high of 1,696 points in late February. Volume was in-line with recent weeks, averaging 89.4 million shares traded.

Share price gains were scarce, with Chesapeake Gold the only stock to gain more than 10¢. The company rose 30¢ to $12.30 on no news, though it is expected to release a prefeasibility study on its Metates project in Mexico early in the second quarter. In mid-February the company outlined a new Metates resource, which stands at 1.18 billion measured and indicated tonnes grading 0.5 gram gold per tonne, 13.7 grams silver per tonne and 0.16% zinc for 19 million oz. gold, 519 million oz. silver and 4.2 billion lbs. zinc.

Waymar Resources was the second-highest gainer on the index with a 10¢ rise to 50¢, having traded as high as 70¢ in the period. The company released assa
y results from three holes it drilled on its Anza property in Colombia’s Antioquia department. Hole 20 hit 41 metres grading 3.85 grams gold from 145 metres depth and hole 21 cut 18 metres grading 14.14 grams gold from 224 metres downhole. The generally lightly traded company saw almost a million shares change hands in the period. The company was recently trading near its 52-week low of 30¢ and briefly rose as high as $1.61 in early 2011.

Moving in the other direction, Orko Silver had the biggest value loss after Pan American Silver opted out of the La Preciosa project in Mexico. Orko had hoped Pan American would deliver a feasibility study on the project by April 13 to earn a 55% of the project and be on the hook for all financing, but Orko has regained full control of La Preciosa, as well as full responsibility for funding it. The company’s share price dropped $1.01 in the period to $1.45.

Peru-focused Plexmar Resources saw the most activity of the period with 11.9 million shares traded as the penny stock went from 3¢ to as high as 8¢ before ending at 4¢. The company announced that a formal community assembly will convene before the end of April to approve a surface-rights access agreement for Plexmar’s Bolsa del Diablo project. Citing progress on project access, Plexmar has cancelled a 1-for-15 share rollback it proposed in February. Plexmar has 228.2 million shares outstanding.

 Lomiko Metals traded briskly after releasing a report from its 2011 Vines Lake exploration program that recommended more exploration this year on the northern B.C. project. Last year’s program hit zinc values as high as 2.4%, with showings concentrated in a 1.5-by-1 km zone. The company, which traded at a 3¢ low in December, climbed 5¢ to 17¢ in the period.

TSX-V most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Plexmar Res PLE 11899 0.07 0.03 0.04 + 0.02

Aurcana Corp AUN 11512 0.95 0.84 0.85 – 0.03

Lomiko Mtls LMR 9981 0.18 0.13 0.165 + 0.04

Uragold Bay Rs UBR 9041 0.05 0.03 0.035 0.00

Atocha Res ATT 8886 0.05 0.03 0.045 + 0.01

Sandstorm Gld SSL 8844 1.92 1.61 1.71 – 0.17

Argex Silver C RGX 7675 1.00 0.79 0.86 + 0.01

Orko Silver OK 6406 2.53 1.38 1.45 – 1.01

Zenyatta Vent ZEN 5812 0.43 0.30 0.34 – 0.05

Cavan Vent CVN 5393 0.08 0.06 0.06 + 0.01

TSX-V greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

MBMI Res MBR 1572 0.02 0.01 0.02 + 100.0

Victory Vent VVN 36 0.09 0.06 0.09 + 63.6

Plexmar Res PLE 11899 0.07 0.03 0.04 + 60.0

Amseco Expl AEL 1840 0.08 0.05 0.08 + 60.0

Southern And E SUR 304 0.13 0.105 0.125 + 56.2

Dentonia Res DTA 92 0.015 0.01 0.015 + 50.0

Red Pine Expl RPX 13 0.03 0.03 0.03 + 50.0

Rainy Mtn Royl RMO 43 0.09 0.06 0.09 + 50.0

GGL Res GGL 700 0.04 0.03 0.03 + 50.0

Colstar Vent CTR 131 0.20 0.15 0.20 + 42.8

Caldera Res CDR 678 0.035 0.02 0.02 – 50.0

Orko Silver OK 6406 2.53 1.38 1.45 – 41.0

Kent Expl KEX 1517 0.04 0.02 0.025 – 37.5

Tumi Res TM 304 0.12 0.085 0.085 – 34.6

Centurion Mnls CTN 515 0.25 0.10 0.125 – 34.2

Star Uranium SUV 25 0.03 0.02 0.02 – 33.3

Noble Metal Gr NMG 33 0.01 0.01 0.01 – 33.3

Great Quest Me GQ 535 2.11 1.33 1.41 – 32.8

Tigray Res TIG 504 0.62 0.40 0.40 – 32.2

Rara Terra Mnl RTX 75 0.12 0.08 0.08 – 30.4

TSX-V greatest value change

WEEK

VOLUME CLOSE CHANGE

Chesapeake Gld CKG 239296 12.30 + 0.30

Waymar Res WYM 995753 0.50 + 0.10

Feronia FRN 195771 0.43 + 0.10

Afferro Mng AFF 43556 1.08 + 0.08

Inform Res IRR 149500 0.345 + 0.08

Omineca Mg&Mtl OMM 382554 0.34 + 0.06

Colstar Vent CTR 131000 0.20 + 0.06

Northern Vertx NEE 71600 1.18 + 0.06

Canada Fluorsp CFI 849960 0.58 + 0.06

Huldra Silver HDA 161857 1.32 + 0.05

Orko Silver OK 6405808 1.45 – 1.01

Lumina Copper LCC 332685 15.36 – 0.99

Great Quest Me GQ 535402 1.41 – 0.69

Atacama Pac Gd ATM 321572 3.75 – 0.50

Maudore Minls MAO 82227 4.22 – 0.48

Northern Graph NGC 3422937 2.74 – 0.45

Bear Creek Mng BCM 309601 3.18 – 0.39

Newstrike Cap NES 555992 2.27 – 0.33

Tasman Metals TSM 285540 2.17 – 0.32

Loncor Res LN 97446 1.14 – 0.31

U.S. markets

 

U.S. equities lost ground after minutes from the Federal Reserve’s latest meeting published on April 3 suggested that the central bank will not bring more monetary stimulus. Markets were also dragged lower on renewed concerns about Europe’s economic recovery after a disappointing bond auction in Spain. U.S. markets were closed on April 6 for Good Friday — the same day U.S. payroll data showed that only 120,000 jobs were added in March, below market expectations and the smallest increase since October. The Dow Jones Industrial Average ended the trading week down 151.9 points, or 1.15%, at 13,060.14, while the S&P 500 Index lost 10.39 points, or 0.74%, to close at 1,398.08. The Philadelphia Gold and Silver Index was off 10.16 points, or 5.79%, at 165.30.     

 

High-grade assay results from drilling at the Don Ese North deposit in Mexico sent Paramount Gold and Silver shares up 21¢, or 9.2%, to US$2.47. Highlights included 23 metres of 5.83 grams gold per tonne and 245.95 grams silver per tonne, including 7 metres of 13.6 grams gold and 926.1 grams silver, and 26 metres of 3.88 grams gold and 275 grams silver. The Don Ese North deposit, part of the company’s San Miguel project, is less than 1 km east of the Guadalupe underground mine operated by Coeur d’Alene Mines. Paramount expects to release a new resource estimate for the entire San Miguel project that incorporates 2011 and early 2012 drill results before mid-year.  

Shares of Aluminum Corporation of China (Chalco) rose 10¢ to US$11.97 on news it would make a proportional takeover bid for up to 60% of Mongolian coal producer SouthGobi Resources’ issued and outstanding shares. Chalco also signed a co-operative agreement with SouthGobi that includes an offtake clause. SouthGobi will have t
he right to offer up to 100% of its saleable coal to Chalco, and Chalco will be obligated to buy the coal at market prices for 24-months. Chalco will help SouthGobi procure electricity for its Mongolian operations through a direct grid connection, or by developing a power plant. Chalco will also support SouthGobi’s coal-haul highway project.

U.S. most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Alcoa* AA 97929 10.24 9.58 9.63 – 0.39

Freeport McMo* FCX 65009 39.43 37.23 37.80 – 0.24

Alpha Nat Res* ANR 57172 15.98 14.05 14.20 – 1.01

Kinross Gold* KGC 43576 10.12 9.13 9.19 – 0.60

Arch Coal* ACI 41733 11.06 10.10 10.15 – 0.56

Barrick Gold* ABX 39912 44.50 40.41 40.73 – 2.75

Newmont Mng* NEM 37418 52.41 47.47 47.73 – 3.54

Goldcorp* GG 33861 46.47 40.47 40.80 – 4.26

Peabody Enrgy* BTU 33207 29.98 28.075 28.27 – 0.69

Hecla Mining* HL 24414 4.78 4.26 4.28 – 0.34

U.S. greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Goldfield* GV 1730 1.26 0.96 1.17 + 20.6

Canarc Res* CRCUF 2734 0.22 0.17 0.182 + 17.4

Elray Res* ELRA 2485 0.01 0.007 0.007 + 16.6

Linux Gold* LNXGF 41 0.035 0.03 0.035 + 16.6

US Antimony* UAMY 233 4.14 3.80 4.03 + 9.2

Paramount Gld* PZG 8524 2.60 2.27 2.47 + 9.2

Mountain Prov* MDM 40 5.50 5.25 5.46 + 3.8

El Capitan Pr* ECPN 848 0.37 0.27 0.28 + 3.7

Santa Fe Gold* SFEG 200 0.92 0.83 0.92 + 3.3

Alderon Irn O* AXX 54 3.21 2.92 3.10 + 2.6

Gold Am Mng* SILA 94 0.05 0.03 0.032 – 40.7

Loncor Res* LON 45 1.50 1.16 1.16 – 22.6

Augusta Res* AZC 374 2.73 2.18 2.24 – 17.9

Cream Mnrls* CRMXF 139 0.23 0.21 0.21 – 16.6

Li3 Energy* LIEG 1513 0.10 0.08 0.084 – 16.0

Uranium Ener* UEC 5486 3.98 3.17 3.28 – 15.9

Legend Intl H* LGDI 221 0.13 0.107 0.107 – 15.7

Keegan Res* KGN 127 3.81 3.16 3.17 – 15.6

Cornerstone C* CTNXF 44 0.07 0.056 0.066 – 15.3

Quaterra Res* QMM 130 0.55 0.45 0.46 – 13.3

U.S. greatest value change

WEEK

VOLUME CLOSE CHANGE

Agrium* AGU 557462 87.23 + 0.86

Yanzhou Coal* YZC 691704 21.98 + 0.37

US Antimony* UAMY 232501 4.03 + 0.34

Paramount Gld* PZG 8524085 2.47 + 0.21

Goldfield* GV 1729780 1.17 + 0.20

Mountain Prov* MDM 40238 5.46 + 0.20

Soc Quim&M Ch* SQM 1265436 58.86 + 0.19

Alum Cp China* ACH 303907 11.97 + 0.10

Alderon Irn O* AXX 54230 3.10 + 0.08

Santa Fe Gold* SFEG 199609 0.92 + 0.03

Randgold Res* GOLD 4621171 81.44 – 6.54

Goldcorp* GG 33861416 40.80 – 4.26

Alliance Rs P* ARLP 1232488 55.92 – 4.18

Royal Gold* RGLD 3130490 61.48 – 3.59

Newmont Mng* NEM 37417873 47.73 – 3.54

AngloGold Ash* AU 11627964 34.11 – 2.81

Barrick Gold* ABX 39911524 40.73 – 2.75

Franco-Nevada* FNV 500191 40.36 – 2.62

BHP Billi-BHP* BHP 18862831 70.04 – 2.36

Allied Nevada* ANV 404037 30.18 – 2.35