Toronto Stock Exchange, Jan. 6-10

Canada’s benchmark index gained during the week, as prices of gold and other commodities rose following poor North American jobs data.

The S&P/TSX Composite Index ended up 198.66 points at 13,747.52. The spot price for gold rose US$10.60 to $1,248.60, pushing up the gold miners. The S&P/TSX Global Gold Index added 5.14 points to end at 166.69. The S&P/TSX Capped Diversified Metals & Mining Index stayed relatively flat at 779.75.

Statistics Canada reported Canada shed 45,900 jobs in December, well below the expected gain of 14,000. The unemployment rate climbed to 7.2% from 6.9% in November.

Meanwhile the Labor Department said the U.S. created 74,000 jobs last month, falling short of the predicted 200,000. But the jobless rate fell from 7% to 6.7%, the lowest level since October 2008, as more Americans simply stopped looking for jobs.

Macarthur Minerals led the week’s percentage gainers, jumping 93% to 29¢ after updating investors on its Ularring hematite project in Western Australia’s Yilgarn iron-ore district. Australia-based Macarthur reported that the Esperance Port Authority received two development proposals for a multi-user iron ore facility. Obtaining a developer this year will allow the company to move forward on project financing, partner contracting and off-take agreements.

Goldgroup Mining tacked on 33% to end at 18¢, after announcing on Jan. 9 that it started production on its Cerro Prieto heap-leach gold mine in Sonora, Mexico. The mine generated 285 oz. gold in December. However, the Vancouver-based firm warned it was not basing its production decision on a preliminary economic assessment or feasibility study, noting this increases the “multiple technical and economic risks of failure.” 

On the flip side, United Silver lost 50% to close at 2¢ after trading in its shares was halted on Jan. 10 pending a delisting. The delisting review was announced on Jan. 7, but expedited a day after United Silver reported a court-appointed receiver and manager for its assets and company.

Similarly Brazil-focused Colossus Minerals dropped 38% to end the week at 4¢, after the TSX reduced its delisting review from 120 days starting Dec. 20, 2013, to 30 days beginning Jan. 8, 2014.

On Jan. 14 the cash-strapped company said it would file for protection under the Bankruptcy and Insolvency Act. It wasn’t able to make a Dec. 31 interest payment on its convertible gold-linked notes before the end of Jan. 10.

Following the bankruptcy news, the TSX expedited its review process and suspended trading in Colossus’ securities.

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