For the first time in a year, Canada’s gross domestic product actually increased during the month of June, if only by a smidgeon at 0.1%. However, it still fell 0.9% overall during the second quarter. The S&P/TSX composite index fared no better during the Aug. 25-31 reporting period, rising 78.24 points, or 0.1%, as well, to 10,868.21 points.
The period ended on a downward note as mining stocks fell on concerns that lending restrictions in China may slow global growth.
The Capped Metals and Mining index dropped 3.3% or 26.35 points to 780.69, while the Global Gold index moved up 3.4% or 9.99 points to 307.1 points.
In the news, West Timmins Mining and Lake Shore Gold agreed to merge. The all-share deal, which values West Timmins at $319 million, was praised by analysts, who predict that the new Lake Shore will have a shot at becoming a mid-tier gold producer. West Timmins was one of the major volume movers over the period with 23.9 million shares changing hands.
At the top of the list was Mercator Minerals, with a trading volume of 47.5 million shares. The company was down 23¢, closing at $2.39 a share. Mercator is raising $70 million in a bought-deal financing, selling nearly 27 million shares at $2.60 apiece.
Eldorado Gold is buying Sydney, Australia-based Sino Gold for $2 billion in shares in a deal that will increase the company’s gold production to 550,000 oz. this year. The new Eldorado will have four operating mines; three in China and one in Turkey, plus a project pipeline that will see production reach 850,000 oz. gold from six mines by 2011. Eldorado scooped up a 19.8% interest in Sino in June this year through a deal with Gold Fields. Eldorado shares were down 35¢ over the period, closing at $11.30 apiece on a trading volume of 19.7 million shares.
Ivanhoe Mines, operator of the massive Oyu Tolgoi copper-gold project in Mongolia (with partner Rio Tinto) was the top gainer over the period following news the Mongolian parliament had officially repealed a 68% profit windfall tax. Ivanhoe shares jumped $2.64 over the period to $12.12.
By contrast, First Quantum Minerals was the top loser over the period by value, shedding $7.86 per share to close at $64.83 following a letter from Democratic Republic of the Congo (DRC) Prime Minister Adophe Muzito regarding the company’s 65%-owned Kolwezi copper-cobalt tailings project. First Quantum says the letter proposes that the mining permit for Kolwezi be returned to 12.5%-owner La Gnrale Des Carrires et des Mines (Gcamines). The International Finance Corp. (7.5% owner) and the Industrial Development Corp. of South Africa (7.5% owner), say the claims have no legal merit. All three are preparing a response and trying to set up meetings with DRC government officials. The DRC government holds the remaining 5%.
| TSX most active issues | |||||
| VOLUME | WEEK | ||||
| (000s) | HIGH | LOW | CLOSE | CHANGE | |
| Mercator Mnls ML | 47506 | 2.88 | 2.36 | 2.39 | -0.23 |
| Equinox Minls EQN | 26911 | 2.89 | 2.60 | 2.73 | -0.00 |
| WesternCCoal WTN | 26209 | 3.25 | 2.58 | 2.64 | -0.56 |
| West Timmins MWTM | 23935 | 2.35 | 1.90 | 2.07 | -0.41 |
| Yamana Gold YRI | 22298 | 10.21 | 9.53 | 10.07 | + 0.42 |
| Thompson CreekTCM | 21369 | 15.80 | 12.51 | 12.59 | -3.21 |
| Centamin Egypt CEE | 20543 | 1.56 | 1.46 | 1.48 | -0.01 |
| Teck B TCKB | 20493 | 29.05 | 26.20 | 26.42 | -1.97 |
| Eldorado Gold ELD | 19701 | 12.07 | 11.19 | 11.30 | -0.35 |
| GrandeCacheCGCE | 18582 | 3.83 | 3.10 | 3.14 | -0.64 |
| TSX greatest percentage change | ||||||
| VOLUME | WEEK | |||||
| (000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Linear Metals | LRM | 3837 | 0.48 | 0.34 | 0.39 | + 69.5 |
| China Zirconm | CZL | 18 | 1.75 | 1.00 | 1.20 | + 60.0 |
| Goldstake Exp | GXP | 26 | 0.03 | 0.02 | 0.03 | + 50.0 |
| Richview Res | RVR | 10405 | 0.05 | 0.01 | 0.03 | + 50.0 |
| Norsemont Mng | NOM | 1643 | 1.94 | 1.25 | 1.85 | + 48.0 |
| Arehada Mining | AHD | 210 | 0.19 | 0.14 | 0.19 | + 46.1 |
| Entree Gold | ETG | 1731 | 2.65 | 1.84 | 2.38 | + 33.7 |
| Tiomin Res | TIO | 8979 | 0.05 | 0.02 | 0.04 | + 33.3 |
| Grandview Gld | GVX | 375 | 0.10 | 0.09 | 0.09 | + 28.5 |
| Ivanhoe Mines | IVN | 10675 | 12.50 | 9.80 | 12.12 | + 27.8 |
| Gitennes Expl | GIT | 287 | 0.06 | 0.05 | 0.05 | -28.5 |
| Zincore Mtls | ZNC | 566 | 0.18 | 0.14 | 0.14 | -26.3 |
| Forsys Metals | FSY | 5414 | 4.85 | 3.85 | 3.96 | -25.2 |
| Firstgold | FGD | 149 | 0.08 | 0.06 | 0.06 | -25.0 |
| Zazu Metals | ZAZ | 276 | 0.20 | 0.16 | 0.17 | -22.7 |
| Thompson Creek | TCM | 21369 | 15.80 | 12.51 | 12.59 | -20.3 |
| San Anton Res | SNN | 29 | 0.19 | 0.18 | 0.18 | -18.1 |
| Franconia Mnls | FRA | 1554 | 0.27 | 0.21 | 0.23 | -17.8 |
| Western C Coal | WTN | 26209 | 3.25 | 2.58 | 2.64 | -17.5 |
| Khan Res | KRI | 1383 | 0.42 | 0.28 | 0.29 | -17.1 |
| TSX greatest value change | ||||
| WEEK | ||||
| VOLUME | CLOSE | CHANGE | ||
| IShCOMEXGTr | IGT | 19092 | 102.42 | + 2.68 |
| Ivanhoe Mines | IVN | 10675327 | 12.12 | + 2.64 |
| Agnico-Eagle | AEM | 2227652 | 62.79 | + 1.56 |
| Goldcorp | G | 8820561 | 39.89 | + 1.54 |
| Ja guar Mng |
JAG | 1874923 | 10.72 | + 1.51 |
| Extract Res | EXT | 14348 | 9.00 | + 1.25 |
| Royal Gold | RGL | 16852 | 43.49 | + 1.20 |
| Franco-Nevada | FNV | 1364941 | 28.17 | + 1.10 |
| Seabridge Gold | SEA | 68323 | 30.74 | + 1.09 |
| Central Gold-T | GTU_U | 18489 | 41.20 | + 0.88 |
| First Quantum | FM | 4473303 | 64.83 | -7.86 |
| Potash Cp Sask | POT | 4924851 | 97.18 | -6.57 |
| Thompson Creek | TCM | 21369028 | 12.59 | -3.21 |
| Cameco Corp | CCO | 4462192 | 29.13 | -2.11 |
| Teck B | TCKB | 20493283 | 26.42 | -1.97 |
| Teck A | TCKA | 18443 | 27.49 | -1.54 |
| Forsys Metals | FSY | 5413845 | 3.96 | -1.34 |
| GrandeCacheC | GCE | 18582277 | 3.14 | -0.64 |
| Queenston Mng | QMI | 449773 | 5.27 | -0.58 |
| WesternCCoal | WTN | 26208660 | 2.64 | -0.56 |
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