Market news

Toronto Stock Exchange

The S&P/TSX Composite Index gained 71 points to finish the period at 12,147.28. The slight gain came as the end of the period brought positive earning reports out of Canada and the U.S., while some commodity prices edged higher. The trend picked up the Canadian dollar as well, which was up 0.55¢ to 101.03¢. 

Gold dropped after a stellar previous period, falling US$16 to US$1,642.80 per oz. The selling pressure flowed through to miners, and the Global Gold Index shaved off 6 points to finish at 310.71. 

The diversified miners didn’t do much better, with the S&P/TSX Capped Diversified Metals & Mining Index falling 15 points to 1,045.16. The relatively flat movement came on the back of mixed results in the metal market as nickel, tin and lead prices were all lower, while copper and aluminum prices rose slightly and zinc prices were flat. 

Companies were in the mood for making deals, and the market felt like rewarding them. The most heralded deal was one between Energy Fuels and Denison Mines. Both companies made healthy gains after the announcement. The friendly offer would see Energy Fuels acquire Denison’s U.S. properties in an all-stock deal that values assets at $106 million, and would leave Denison shareholders holding two-thirds of Energy Fuels. The deal would also make Energy Fuels the biggest uranium producer in the U.S., with large reserves to go along with all of that production. Energy Fuels shares were up 30% to 31¢ for the period, while Denison shares were up 27% to $1.82. 

Merger and acquisition activity was also behind Vaaldiam Mining’s surge. The company’s shares were the biggest gainers by percentage points, jumping 104% to 31¢ on word that it would be acquired by the privately held firm BCKP Limited for $18.5 million. The offer breaks down to 25.8¢ per share and represents a 115% premium to Vaaldiam’s stock price. Vaaldiam holds gold and diamond exploration properties in Brazil, as well as royalties on copper, gold and diamond properties in South America and Africa. 

The period also saw AuRico Gold complete the sale of two projects in Mexico to Endeavour Silver. The deal marked AuRico’s second major asset sale in a month — transactions that have combined to raise over US$300 million for the company. The sale is part of AuRico’s plan to focus on Canada and the U.S. while Endeavour expands its Mexican silver operations. 

While deals drove some miners, others had the drill to thank for market gains. Velocity Minerals was one as its shares climbed 16% to 22¢ after announcing a 47-metre intercept grading 9.86% graphite. The assay was from one of its three newly acquired graphite properties located in the central metasedimentary belt in southwestern Quebec.

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Uranium OneUUU267493.052.632.94+0.15

Cline MngCMK175651.090.880.99-0.02

Denison MinesDML161561.881.411.82+0.39

B2GoldBTO138224.193.523.76-0.37

Yamana GoldYRI1364815.3214.1114.16-0.98

Eldorado GoldELD1247714.5713.8213.85-0.55

Barrick GoldABX1198141.8539.9239.96-1.53

Cameco CorpCCO1153022.3420.3622.01+1.56

Kinross GoldK113459.578.939.01-0.48

Ivanhoe MinesIVN1131913.5511.6312.65-0.10

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Vaaldiam MngVAA68460.2550.110.255+104.0

Energy FuelsEFR48430.3150.2450.31+29.1

Denison MinesDML161561.881.411.82+27.2

Lithium AmericLAC5081.401.071.37+26.8

Thundermin ResTHR5570.090.0750.09+20.0

TVI PacificTVI5380.0350.030.035+16.6

Velocity MinlsVLC6190.240.170.215+16.2

XinergyXRG1872.862.362.73+15.6

Acadian MngADA210.160.140.16+14.2

Gabriel ResGBU38573.222.603.13+14.2

Geovic MngGMC23840.130.080.09-25.0

Starfield ResSRU111450.020.0150.015-25.0

Pac Rim MiningPMU2980.1150.0850.085-22.7

Calvista GoldCVZ1680.3250.210.26-22.3

Mediterrn ResMNR7050.140.100.11-21.4

Cobriza MtlsCZA1970.200.160.175-20.4

Extorre Gold MXG20235.404.094.30-19.9

Mawson WestMWE10021.100.910.91-17.2

Marathon GoldMOZ690.980.820.82-16.3

Minco SilverMSV4251.961.621.68-16.0

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Cameco CorpCCO1153004422.01+1.56

Potash Cp SaskPOT663521643.61+0.91

AgriumAGU397806986.01+0.85

Horizns G BearHGD133441711.90+0.75

Gabriel ResGBU38569033.13+0.39

Denison MinesDML161558311.82+0.39

XinergyXRG1874742.73+0.37

Karnalyte ResKRN10449910.28+0.34

Lithium AmericLAC5082371.37+0.29

Perseus MngPRU41351652.60+0.28

Royal GoldRGL3202759.80-4.16

Tahoe ResTHO98803017.95-2.25

Allied NevadaANV68699928.61-2.19

Silver WheatonSLW1010430029.16-1.97

Barrick GoldABX1198127539.96-1.53

Centerra GoldCG255717312.28-1.13

Inmet MiningIMN95557055.22-1.08

Extorre Gold MXG20233044.30-1.07

Major DrillingMDI70192014.88-1.07

Kirkland Lk GdKGI73765012.72-0.98

TSX Venture Exchange

Another week meant another drop for the S&P/TSX Venture Composite Index, which fell 61.98 points to 1,397.95 in the period. The index is sitting at its lowest point since a brief dip to 1,305.53 points last September, with the next lowest level being the 1,342-point low hit in mid-2010 that ushered in a period of impressive growth. Volume varied throughout the week, ending with an average of 81.8 million shares traded daily.

GTA Resources and Mining got a boost after releasing more positive drill results from the Northshore property in Ontario’s Hemlo-Schreiber greenstone belt. The company, which is working to earn-in 51% of the property from Balmoral Resources, reported that hole 14 hit 240 metres grading 1.41 grams gold per tonne from 8 metres depth, or 0.99 gram gold capped, and included half-metre intercepts grading 132 grams gold and 120 grams gold. GTA’s share price climbed 36¢ to $1.16 with 4.3 million shares traded, having climbed 16¢ the week before. Balmoral dropped 7¢ to 67¢.

Pacific Booker Minerals continued to climb on no news. The company gained $1.90 to reach $11.50, becoming the highest value climber of the period. The tightly held company, with only 12.2 million shares out and no warrants, saw 44,850 shares traded in the period. Pacific Booker is moving ahead with its Morrison copper-gold-molybdenum project in northern B.C., having applied for a mining lease in late March. The company started work on a feasibility study in 2003.

Calibre Mining, which shot out of obscurity in January on impressive drill results from Nicaragua, came crashing back down after a second round of results failed to impress. Highlights from the latest round of results include 147 metres grading 0.65 gram gold and 0.27% copper, and 172 metres averaging 0.48 gram gold and 0.24% copper. January results included 262 metres carrying 0.78 gram gold and 0.3% copper from surface. The company’s share price dropped 19¢ to end at 24¢ with 21.6 million shares traded, putting the company close to where it traded before the January results.

Peru-focused Intigold Mines shot up after announcing it would explore the Chance E mineral claim with St. Elias Mines in the
coming weeks. The claim block sits next to St. Elias’ Tesoro gold project in southwestern Peru, with geophysical and satellite imagery indicating that structural lineaments coincident with gold mineralization on the Tesoro project extend to the Chance E claim. Intigold can earn 60% of the claim by paying $500,000 to St. Elias, issuing 1 million shares and spending $1 million on exploration over three years. Intigold climbed 14¢, or just over 50%, to end at 41¢. 

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Calibre MngCXB216230.3450.2050.235-0.20

Argex Silver CRGX77871.250.830.92-0.10

Stellar Pac VtSPX72770.130.100.11+0.01

Scorpio GoldSGN69100.900.800.90+0.08

Aurcana CorpAUN56970.880.800.80-0.03

Pele Mtn ResGEM51280.1450.1050.110.00

Apogee MinlsAPE49680.110.0950.095-0.02

Groundstar ResGSA48210.040.0350.040.00

Kent ExplKEX46510.0650.0250.04+0.02

GTA Res & MngGTA42831.200.791.16+0.36

TSX-V greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Volcanic MtlsVOL10640.050.030.05+100.0

Tri-Gold ResTAL2040.170.050.17+70.0

Kent ExplKEX46510.0650.0250.04+60.0

Southern And ESUR14270.150.0850.15+57.8

Remstar ResREM5170.060.0350.055+57.1

Intigold MinesIGD6180.440.300.41+51.8

MBMI ResMBR16690.0150.010.015+50.0

Kermode ResKLM6040.0950.070.095+46.1

GTA Res & MngGTA42831.200.791.16+45.0

Macusani YelloYEL11350.180.100.18+44.0

Azteca GoldAZG2720.0050.0050.005-50.0

Black Bull ResBBS390.0050.0050.005-50.0

Arrowhead GoldAWH31260.060.030.03-50.0

Corazon GoldCGW5920.200.100.11-48.8

Mukuba ResMKU600.110.0550.06-45.4

Calibre MngCXB216230.3450.2050.235-45.3

Colstar VentCTR610.140.0850.085-43.3

New Guinea GldNGG31710.0250.0150.015-40.0

Mazorro ResMZO12570.100.060.06-40.0

Curlew Lke ResCWQ5280.0150.010.01-33.3

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Pac Booker MinBKM4485011.50+1.90

GTA Res & MngGTA42833101.16+0.36

Callinan RoyalCAA1428632.85+0.25

Dia Bras ExplDIB1448862.89+0.18

Intigold MinesIGD6181440.41+0.14

Amarillo GoldAGC182721.11+0.14

RoxgoldROG22417681.56+0.12

Brazil ResBRI3392171.33+0.11

Canaco ResCAN9322730.94+0.09

Scorpio GoldSGN69098590.90+0.08

Lumina CopperLCC220097313.05-3.24

Chesapeake GldCKG11467712.33-1.26

Northern GraphNGC26491792.30-0.65

Flinders ResFDR8386552.25-0.52

Mirasol ResMRZ9783562.46-0.38

Maudore MinlsMAO712873.89-0.35

Atac ResATC3721222.26-0.31

Anfield NickelANF1440543.75-0.29

Tasman MetalsTSM5638231.85-0.26

Eurasian MinlsEMX1365212.07-0.25

U.S. markets

A strong start to earnings season in the U.S. and a US$430-billion pledge in new funding to the International Monetary Fund from the Group of Twenty — which will help bail out European countries from the Euro debt crisis — lifted U.S. equities in the week. The Dow Jones Industrial Average reversed two straight weeks of decline, gaining 1.40%, or 179.67 points, to 13,029.26. The S&P 500 Index edged up 0.60%, or 8.27 points, to close at 1,378.53.

BHP Billiton’s shares rose US$3.17 to US$63.11 on news it will acquire five exploration tenements near its giant Olympic Dam copper-gold-uranium mine in Australia from Minotaur Exploration for US$10.3 million. The tenements are in the  Gawler craton, a geological domain recognized for several large, high-quality iron oxide copper-gold-uranium deposits. 

Rio Tinto advanced US$2.24 to US$57.12 after unveiling a comprehensive financing package for Ivanhoe Mines that will ensure continued development of the Oyu Tolgoi copper-gold project in Mongolia. The financing package, along with the proceeds from any potential future asset sales by Ivanhoe, are intended to cover Ivanhoe’s total funding needs to complete Oyu Tolgoi. On top of the US$1.8-billion interim funding facility that was agreed to in December 2010, Rio Tinto will support a US$1.8-billion equity financing by Ivanhoe and provide US$1.5 billion in bridge financing. Once project financing is in place, the US$1.5-billion bridge financing and US$1.8-billion interim funding facility will be repaid to Rio Tinto. Shares of Ivanhoe Mines closed the week at US$12.78 per share, down US$0.01. 

First-quarter earnings for Peabody Energy beat expectations and sent shares of the coal producer up US$1.42 to US$29.80. Although earnings in the first quarter were down 2.2% or 63¢ a share year-on-year at US$172.7 million, owing to acquisition-related charges and bad weather, the company reported higher prices from its Australian operations. The company also promised to reduce coal production this year in the U.S. during mild weather and weaker demand from utilities, which are switching from coal to cheaper natural gas.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA12391010.079.679.70-0.15

Freeport McMo*FCX9533839.1336.8337.57+0.63

Alpha Nat Res*ANR7889417.3015.4216.15+0.49

Arch Coal*ACI6736710.439.409.40-0.59

Ivanhoe Mines*IVN4778913.6711.7512.78-0.01

Peabody Enrgy*BTU4663931.0427.62529.80+1.42

Kinross Gold*KGC367589.638.999.07-0.44

Barrick Gold*ABX3169641.9140.2240.26-1.35

Newmont Mng*NEM2923248.9347.2247.25-1.43

Silver Wheatn*SLW2783630.6529.1229.34-1.82

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Infrastrc Mat*IFAM360.150.040.04+100.0

Starfield Res*SRFDF450.0230.020.023+27.7

Denison Mines*DNN9421.891.401.83+27.0

Pac Booker Mn*PBM1312.509.8312.12+24.5

Lake Vict Mng*LVCA120.1080.090.108+20.0

Gold Am Mng*SILA2230.050.030.036+16.1

Entree Gold*EGI5071.270.9351.22+14.0

Li3 Energy*LIEG19120.1080.080.10+11.1

Cameco Corp*CCJ1485722.5620.3622.15+8.1

Gold Reserve*GRZ3974.403.894.28+8.0

Tombstone Exp*TMBXF2350.040.030.03-25.0

America West*AWSR10370.3190.160.24-22.5

Samex Mng*SMXMF1000.380.2960.296-21.9

Cornerstone C*CTNXF270.0630.0560.056-21.1

Extorre Gold*XG12415.414.154.34-19.7

Geovic Mng*GVCM4400.1350.0810.09-19.6

Silver Dragon*SDRG60270.040.0250.029-17.1

Elray Res*ELRA35870.0060.0040.005-16.6

El Capitan Pr*ECPN8100.270.220.225-15.0

Linux Gold*LNXGF830.0350.030.035-12.5

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

BHP Billi-BBL*BBL454518263.11+3.17

Alliance Rs P*ARLP83422360.47+3.05

BHP Billi-BHP*BHP1225183173.41+2.96

Compass Mnls*CMP35574474.13+2.46

Pac Booker Mn*PBM1260012.12+2.39

Rio Tinto*RIO383084357.12+2.24

Cameco Corp*CCJ1485700922.15+1.66

Peabody Enrgy*BTU4663931229.80+1.42

Agrium*AGU79952386.58+1.24

Potash C Sask*POT2305704443.93+1.11

Royal Gold*RGLD276014560.28-3.65

Molycorp*MCP1106167029.99-2.73

Allied Nevada*ANV46164428.88-2.02

Cliffs Nat Rs*CLF1971383167.30-2.01

Randgold Res*GOLD256486087.13-1.91

Silver Wheatn*SLW2783561529.34-1.82

Newmont Mng*NEM2923202447.25-1.43

Barrick Gold*ABX3169568540.26-1.35

AngloGold Ash*AU953062132.87-1.14

Extorre Gold*XG12409004.34-1.07