Market news

Toronto Stock Exchange

Canada’s main index fell during the trading week, as investors fretted over the U.S. economy toppling over the “fiscal cliff” with several laws — the Bush tax cuts among them — set to expire at year-end, after which a drop in government spending and tax hikes are slated to kick in at the start of 2013. This could drive the U.S. economy back into a recession, unless U.S. lawmakers reach an agreement on how to avoid the fiscal cliff.

The S&P/TSX Composite Index lost nearly 183.61 points to end at 12,380.41, while the spot price of gold gained US$53.90 per oz. to finish at US$1,738.80, pushing up gold miners. The S&P/TSX Global Gold Index rose 9.57 points to 334.13, but the diversified miners didn’t do as well, with the S&P/TSX Capped Diversified Metals dropping l8.24 points to 953.95. 

Entrée Gold was one of the week’s top percentage gainers, advancing 39.5% to 60¢ after announcing that Turquoise Hill finalized a power-purchase agreement with Inner Mongolia Power to supply power to the Oyu Tolgoi mining complex. 

Entrée is a joint-venture partner with a carried interest on part of Oyu Tolgoi, including the Hugo North Extension deposit and the larger Heruga deposit. The junior expects first development production on its jointly held property as early as 2015. 
Gold miner Centamin jumped 24.4% to end at $1.12 after it shares took a blow in the previous week when it announced on Oct. 30 that its 18-year-old concession agreement to extract gold from the Sukari mine in Egypt was annulled.

A day later it clarified only a part of the agreement was deemed invalid, and on Nov. 5 it said the administrative court indicated its exploitation lease was invalid because it didn’t have a copy of the agreement Centamin and Egypt’s Mineral Resources Authority had reached, something the company believes could be resolved during the appeal process, as it has the original lease documentation in hand. 

Uranium One was the most actively traded stock after posting its third-quarter results. It reported a headline loss of US$61 million, or US6¢ a share, and an adjusted profit of US1¢ a share, missing the analyst consensus of US3¢ a share. 

The loss included a US$79-million impairment charge at the Zarechnoye South exploration property, near the Zarechnoye mine in Kazakhstan. The miner said it was uneconomic to mine the property at current uranium prices. 

During the quarter, the company reported revenue of US$142.6 million on sales of 2.9 million lb. uranium oxide, at an average price of US$49 per lb. It sold 6.6 million lb. year-to-date, and has reiterated its full-year sales guidance of 11 million lb. Attributable production for the quarter was 3.1 million lb. 

Uranium One closed the week up 6¢ to $2.05, on 23.2 million shares traded.


TSX most active issues

    Volume Week
    (000s) High Low Close Change
Uranium One UUU 23238 2.08 1.85 2.05 + 0.06
Kinross Gold K 12952 10.42 8.96 10.32 + 0.16
Paladin Energy PDN 12787 1.11 0.98 1 0.09
Barrick Gold ABX 10935 36.97 34.94 36.09 + 0.45
Baja Mng BAJ 10917 0.15 0.12 0.13 0.01
New Gold NGD 10709 11.21 10.41 10.7 + 0.12
Platinum Gp Mt PTM 9265 1.03 0.98 1.03 + 0.06
B2Gold BTO 9235 4.1 3.82 3.92 0.25
Capstone Mng CS 9107 2.63 2.43 2.45 0.06
Goldcorp G 9060 45.15 43.17 44.28 + 0.97

TSX greatest percentage change

    Volume Week
    (000s) High Low Close Change
Curis Res CUV 313 0.84 0.63 0.84 + 42.3
Entree Gold ETG 1295 0.7 0.45 0.6 + 39.5
TriAusMin TOR 936 0.11 0.08 0.11 + 29.4
Canarc Res CCM 541 0.17 0.13 0.15 + 25
Centamin CEE 4031 1.24 1.1 1.12 + 24.4
Canada Lithium CLQ 5955 0.74 0.65 0.74 + 17.4
Orocobre ORL 32 1.83 1.75 1.8 + 16.1
Guyana Gldflds GUY 680 3.42 2.89 3.42 + 15.9
Moneta Porcpn ME 754 0.25 0.23 0.25 + 13.6
Stockport Expl SPT 401 0.13 0.08 0.13 + 13
Thundermin Res THR 59 0.05 0.05 0.05 35.7
Liberty Silver LSL 180 1.21 0.61 0.61 35.1
Cline Mng CMK 5791 0.34 0.24 0.25 28.9
Diamond Fields DFI 128 0.04 0.03 0.03 25
Homeland Enrgy HEG 411 0.02 0.02 0.02 25
Petaquilla Mnl PTQ 8225 0.64 0.44 0.5 22.6
Niocan Inc NIO 25 0.29 0.26 0.26 21.2
Nuinsco Res NWI 253 0.04 0.04 0.04 20
Coeur d Alene CDM 457 31.07 22.74 24.78 19
MDN Inc MDN 245 0.16 0.13 0.14 18.1



TSX greatest value change

    Week
    Change Close Change
Agnico-Eagle AEM 2281476 55.67 + 2.09
Royal Gold RGL 16112 88.39 + 1.7
Franco-Nevada FNV 1774207 59.25 + 1.67
Goldcorp G 9060225 44.28 + 0.97
Yamana Gold YRI 6911371 20.14 + 0.79
Rainy River Rs RR 692386 5.84 + 0.63
Central Fund CEFA 214051 22.76 + 0.62
Allied Nevada ANV 1110908 35.49 + 0.47
Guyana Gldflds GUY 679991 3.42 + 0.47
Barrick Gold ABX 10934657 36.09 + 0.45
Agrium AGU 3056315 96.07 9.69
Coeur d Alene CDM 457450 24.78 5.82
Walter Energy WLT 25089 33.66 1.61
Newmont Mng NMC 13085 49.36 1.09
Centerra Gold CG 1620445 10.6 0.8
Potash Cp Sask POT 4304700 39.04 0.76
First Quantum FM 6819582 22.2 0.69
Harry Winston HW 390476 13.38 0.41
Silver Std Res SSO 668959 14.82 0.38
Horizns G Bear HGD 1307103 8.75 0.36

TSX Venture Exchange

The S&P/TSX Venture Composite Index dropped 9.8 points, or 0.74% during the trading period, before closing at 1,300.92.
Renewed uncertainty surrounded the U.S. economy following President Barack Obama’s re-election, though the Venture benefitted from rising commodity prices and good economic data out of China.

Gold jumped US$53.90 before closing the week at US$1,738.80 per oz., with speculators viewing Obama’s strong showing and the Democratic party’s gains in the U.S. Senate as foreshadowing more quantitative easing going forward. December crude contracts were up US98¢ on the New York Mercantile Exchange to US$86.07 per barrel, while copper remained relatively stable, dropping US2¢ prior to closing the week at US$3.45 per lb.

The Chinese government reported higher consumer spending with retail sales rising 14.5% in September, as factory output expanded by 9.6%. Inflation is easing in China, leading to speculation the government has further room to work with stimulus measures, including interest rate cuts.

Vancouver-based Brixton Metals posted strong gains after announcing results from a 1,700-metre drill program that expanded its polymetallic Oban Breccia zone at the company’s flagship Thorn property, 130 km southwest of Atlin, B.C. Brixton jumped 79% before closing out the week at 22¢ per share. Drilling established a 100-metre, true-width zone at depths of 300 metres that runs 130 metres along strike. The depth of the holes ranged from 45 metres to 338 metres. Hole 12-83 extended mineralization 70 metres southeast at a true thickness of around 100 metres. Highlights from the hole include 150 metres of 5.67 grams gold equivalent and 315 grams silver equivalent. Brixton has an earn-in agreement with Kiska Metals that could see it hold as much as a 65% interest in Thorn, conditional on $10 million in exploration expenditures.

Newstrike Capital dropped 31¢, or 11%, en route to a $2.30 close. On Nov. 6, the company announced results from 8,000 metres of drilling over 15 holes at its Ana Paula gold-silver project in Mexico’s Guerrero gold belt. The holes in the series were collared in the northeast and southeast quadrants of the property and focused on lower-grade mineralization. Newstrike reported results from exploratory holes and an ongoing delineation program targeting a maiden resource estimate. Program highlights include: 31 metres of 0.07 gram gold per tonne and 24 grams silver per tonne in hole 12-116; 13 metres grading 0.91 gram gold and 3.5 gram silver in hole 12-121; and 12.2 metres averaging 1.15 grams gold and 5.3 grams silver in hole 12-123.



TSX-V most active issues

    Volume Week
    (000s) High Low Close Change
Brixton Mtls BBB 6988 0.26 0.15 0.22 + 0.1
Melior Res MLR 6426 0.12 0.12 0.12   0
Aurcana Corp AUN 6099 1.13 1.02 1.1 + 0.07
Sandstorm Mt&E SND 5459 0.57 0.52 0.53 0.02
Selwyn Res SWN 4377 0.05 0.03 0.04 0.01
Fission Energy FIS 4338 0.54 0.4 0.51 + 0.11
Donner Metals DON 4129 0.18 0.17 0.17 0.01
Crown Gold CWM 3969 0.04 0.03 0.04   0
GoldQuest Mng GQC 3594 1.05 0.78 1 + 0.17
Rio Cristal Rs RCZ 3311 0.05 0.04 0.04 0.01


TSX-V greatest percentage change

    Volume Week
    (000s) High Low Close Change
Bralorne Gold BPM 50 0.76 0.61 0.74 + 105.5
Mexivada Mng MNV 1573 0.05 0.02 0.05 + 100
RPT Uranium RPT 1759 0.02 0.01 0.01 + 100
Goldspike Expl GSE 10 0.2 0.2 0.2 + 100
Electra Gold ELT 386 0.01 0.01 0.01 + 100
Cascade Res CC 50 0.01 0.01 0.01 + 100
IEMR Res IRI 51 0.07 0.04 0.07 + 100
Menika Mining MML 86 0.02 0.02 0.02 + 100
Firebird Res FIX 250 0.13 0.08 0.1 + 90
Brixton Mtls BBB 6988 0.26 0.15 0.22 + 79.1
Freeport Res FRI 80 0.09 0.03 0.03 66.6
Solitaire Mnls SLT 396 0.01 0.01 0.01 50
New Guinea Gld NGG 449 0.01 0.01 0.01 50
Silver Shield SSR 276 0.02 0.01 0.01 50
Northcore Res NCR 30 0.01 0.01 0.01 50
Plains Ck Phos PCP 1823 0.02 0.01 0.01 50
Sheltered Oak OAK 260 0.01 0.01 0.01 50
Miocene Mtls MII 25 0.05 0.04 0.04 38.4
Kenai Res KAI 116 0.08 0.07 0.07 38.1
Fortunate Sun FSM 38 0.03 0.03 0.03 37.5




TSX-V greatest value change

    Week
    Change Close Change
Sandstorm Gld SSL 1343509 14.3 + 0.39
Bralorne Gold BPM 49870 0.74 + 0.38
Chesapeake Gld CKG 30886 9.69 + 0.36
Pac Booker Min BKM 27694 4 + 0
.27
Cayden Res CYD 541344 1.62 + 0.25
GoldQuest Mng GQC 3594393 1 + 0.17
Avino Silver ASM 273464 1.79 + 0.17
SilverCrest Mn SVL 1469648 2.83 + 0.16
Olivut Res OLV 78238 1.05 + 0.15
Palladon Vent PLL 46398 1.67 + 0.14
Newstrike Cap NES 2207603 2.3 0.31
Lumina Copper LCC 174673 9.75 0.26
Sona Res SYS 77452 0.33 0.16
Reservoir Mnls RMC 163823 2.93 0.15
Atacama Pac Gd ATM 306200 3.3 0.15
Energold Drill EGD 190205 3.47 0.12
Avala Res AVZ 148000 0.33 0.12
West Cirque Rs WCQ 50000 0.29 0.11
Tasman Metals TSM 127580 1.34 0.11
Callinan Royal CAA 102360 2.15 0.11

U.S. markets

The U.S. election results may have settled who will lead the country for the next four years, but that did little to quell fears that a recession could be on the horizon if the “fiscal cliff” situation is not resolved in the coming months.

Such worries sent U.S. markets lower, with the Dow Jones Industrial Average losing 277 points to 12,815.39, the S&P 500 off 35 points to 1,379.85 and the Nasdaq Composite shedding 79 points to finish the period at 2,904.87 points.

Caterpillar, the world’s largest maker of mining equipment, set a sombre tone for the period, as it offered the slowest forecasted sales growth in four years. The company said growth would range from 5% up to 5% down next year, as the global economy decelerates. That compares with an estimated growth of 13% for this year. The company’s shares were coming under pressure at press time after J.P. Morgan analysts cut their rating to “neutral” due to cost pressures in the mining sector, and the negative impact President Obama’s re-election may have on the U.S. coal and energy sectors.

Entrée Gold was the largest percentage gainer for the period, as its share price was up 45% to 60¢. The upward swing came thanks to a power-supply deal for the Oyu Tolgoi mine in Mongolia. The deal is seen as a critical step in further developing the Oyu Tolgoi mine, which is set to begin a seven-week commissioning of the ore-processing equipment. The main deposit at Oyu Tolgoi extends on to Entrée’s ground. 

Avino Silver & Gold Mines also got a lift after it announced an update from its San Gonzalo mine in Mexico. The company said underground mining development is progressing as expected, and drift-mining along the San Gonzalo vein on the fourth level returned an intercept of 14,768 grams silver over 0.4 metre. The company’s shares were up 11% for the period to $1.80 per share.

Royal Gold is well capitalized after the company sold 5.25 million shares of common stock to a group of underwriters led by Goldman Sachs, and raised US$472.5 million. The company plans to use the money to acquire more gold royalties from developing and producing mines.


U.S. most active issues

    Volume Week
    (000s) High Low Close Change
Alpha Nat Res* ANR 108435 9.8 7.82 8 0.76
Alcoa* AA 79376 8.8 8.32 8.43 0.13
Arch Coal* ACI 78004 8.75 7.23 7.36 0.8
Freeport McMo* FCX 50202 40.69 38.06 38.35 0.29
Molycorp* MCP 47044 10.07 7.42 7.5 2.04
Kinross Gold* KGC 46946 10.41 8.98 10.32 + 0.2
Peabody Enrgy* BTU 43463 29.57 25.8 26.17 1.85
Barrick Gold* ABX 36005 36.91 35.07 36.07 + 0.45
Cliffs Nat Rs* CLF 32152 38.3 34.79 36.44 + 1.3
Hecla Mining* HL 27885 6.4 5.72 6.04 0.46


U.S. greatest percentage change


    Volume Week
    (000s) High Low Close Change
Entree Gold* EGI 1274 0.7 0.46 0.6 + 44.9
Strata O&G* SOIGF 123 0.15 0.11 0.13 + 12
Canarc Res* CRCUF 490 0.16 0.13 0.15 + 11.9
Avino Silver* ASM 221 1.82 1.59 1.8 + 10.9
Caledonia Mng* CALVF 368 0.11 0.09 0.11 + 10.4
Solitario Ex&* XPL 63 1.77 1.49 1.71 + 9.6
Thompson Crk* TC 1525 3.15 2.67 2.96 + 9.2
Timmins Gold* TGD 530 3.4 2.97 3.36 + 9
Keegan Res* KGN 148 4.38 3.73 4.34 + 8.7
Alderon Irn O* AXX 89 1.68 1.44 1.59 + 8.1
Gold Am Mng* SILA 117 0.02 0.01 0.01 29.4
Petaquilla Mn* PTQMF 1010 0.64 0.44 0.5 22.1
Molycorp* MCP 47044 10.07 7.42 7.5 21.3
Coeur d Alene* CDE 23058 31.17 22.85 24.76 19.1
China Shen Zh* SHZ 298 0.29 0.19 0.21 15.8
El Capitan Pr* ECPN 2056 0.32 0.25 0.3 14.5
Lake Vict Mng* LVCA 505 0.08 0.07 0.07 13.3
Arch Coal* ACI 78004 8.75 7.23 7.36 9.8
Tasman Mtls* TAS 195 1.45 1.31 1.33 9.5
Augusta Res* AZC 248 2.96 2.64 2.64 9.2


U.S. greatest value change

    Week
    Change Close Change
Agnico-Eagle* AEM 5182049 55.62 + 2.08
Royal Gold* RGLD 2897319 88.12 + 1.67
Franco-Nevada* FNV 1175858 59.24 + 1.64
AngloGold Ash* AU 6060128 33.39 + 1.5
Cliffs Nat Rs* CLF 32151876 36.44 + 1.3
Goldcorp* GG 19808495 44.17 + 0.83
Yamana Gold* AUY 4004544 20.13 + 0.8
BHP Billi-BHP* BHP 9873134 71.22 + 0.69
Allied Nevada* ANV 628573 35.6 + 0.63
Harmony Gold* HMY 11370803 8.42 + 0.63
Agrium* AGU 1480747 96.04 9.45
Coeur d Alene* CDE 23057583 24.76 5.85
Alliance Rs P* ARLP 627446 58.28 5.31
Randgold Res* GOLD 2531836 112.34 4.93
Walter Energy* WLT 3210953 33.1 2.07
Molycorp* MCP 47044058 7.5 2.04
Peabody Enrgy* BTU 43463106 26.17 1.85
BHP Billi-BBL* BBL 3275603 61.99 1.77
Natural Rs Pt* NRP 244285 19.26 1.7
Consol Energy* CNX 13083165 32.95 1.62


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