Market news: Toronto Stock Exchange

Optimism that politicians south of the border would come to a resolution regarding the impending fiscal cliff helped hold up equities north of the border during the trading week. The S&P/TSX Composite Index increased 107 points for the period and finished at 12,388.71 points, although fresh concerns that an agreement wouldn’t be reached in time put pressure on equities at press time.

Gold trended downward, with the yellow metal off US$53 to US$1,645.90 per oz. This movement affected the S&P/TSX Global Gold Index, which fell 8 points to 290.6 points. 

The diversified miners fared slightly better thanks to positive economic signs out of China, and the S&P/TSX Capped Diversified Metals & Mining Index was up 8 points to 996.62, in spite of copper dropping 14¢ to US$3.54 per lb. 

A big win for the pro-nuclear Liberal Democratic Party in Japan helped push uranium stocks higher. The party ran on a platform that argued for the partial reversal of the anti-nuclear energy policy implemented by the Democratic Party of Japan after the Fukushima disaster in March 2011. Uranium companies large and small took part in the rally, with Cameco shares up $1.32 to $20.60, Bannerman Resources’ share price climbing 36% to 10¢ and Paladin Energy up 20% to $1.13.

Mercator Minerals secured debt financing and saw its market capitalization climb. The company executed an agreement with RMB Australia Holdings for $30 million and drew down $27.3 million. Full payment is due at the end of 2015 and interest on the loan is Libor, plus 7%. The financing is the first step in its attempt at restructuring of its debt associated with the development of its El Pilar deposit in Mexico’s Sonora state. Mercator produces copper, molybdenum and silver at the Mineral Park mine in Arizona, and its shares finished the period 21% higher at 49¢.

It has been a turbulent time for Centamin and its Sukari mine in Egypt, but things are finally normalizing for the company.  After halting operations at the mine due to a lack of diesel and export issues, both of which involved disputes with the new political regime in the country, operations are back on track. Production at the mine has restarted, and the company’s shares were up 20% to 66¢ as a result. 

The news wasn’t so good for Cline Mining. The company’s share price was off 51% to 9¢ after the company couldn’t make a scheduled semi-annual interest payment. Affected bondholders are scrambling to reclaim their investment, as the payment was for $2.5-million and connected with a $50-million senior secured bond. Cline has metallurgical coal interests in Colorado and is suing the B.C. government for a loss of rights under coal licences in the province.

TSX most active issues, December 10 – 14

TSX greatest percentage change,  December 10 – 14

TSX greatest value change, December 10 – 14