Despite the brief spell of confidence the U. S. government’s bailout of Fannie Mae and Freddie Mac brought to the markets, downward momentum proved too strong to combat for the TSX Composite Index, as it fell roughly 1,500 points during the Sept. 2-9 trading period.
The materials sector was largely responsible for the tumble, as falling oil prices came with news that hurricane Ike was not going to be as damaging as feared, and falling metal prices pointed to concerns over worsening demand connected to a softening global economy.
The Global Gold Index was off roughly 50 points to 236.15 as gold prices broke below the US$800-per-oz. level. At presstime, the yellow metal was trading at US$779 per oz.
Weaker copper, aluminum, nickel, tin, lead and zinc prices brought the Capped Metals and Mining Index down 112 points to 628.39.
Word that Aurelian Resources shareholders had approved Kinross Gold’s offer for the company that made one of the richest gold discoveries in the last few years helped make Kinross the most actively traded miner for the period. In all, 35 million Kinross shares traded hands and the company’s share price fell $3.20 to $14.30. As a reward for taking on the political risk associated with a deposit located in Ecuador, Kinross is paying Aurelian shareholders a mere 10% premium based on the two companies’ share prices last week.
In a period that saw more losers than winners, Sterling Mining saw its shares fall by the greatest percentage. The silver miner lost 65% of its share price thanks to a growing turf war between it and privately held Sunshine Precious Metals over the Sunshine mine in Idaho. Sterling, which got the mine into production in 2007, says Sunshine Precious Metals has falsely accused it of not paying its required annual fees to the government, denying it access to the mine, and not paying rent on some buildings on the property.
Banro continued on its epic slide. The company with massively rich gold deposits in the eastern Democratic Republic of the Congo (DRC) fell another 45% over the period to finish at just $2.03 and was down to $1.90 at presstime. The company’s shares had been trading at over $11 at the beginning of the year, and while it continues to return excellent results from its four connected projects in the DRC, continued uncertainty regarding the renegotiation of mining contracts in the country has undermined its share value. The latest damage came when a mines ministry official told Bloomberg news agency that the government may take up to 51% of mineral projects on which feasibility studies have not been completed. Banro does not have any completed feasibility studies yet. However, the government hasn’t released any official word to back up the official’s statement.
TSX most active issues
| VOLUME | WEEK | |||||
| (000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Kinross Gold | K | 34877 | 16.33 | 14.22 | 14.30 | -3.20 |
| Yamana Gold | YRI | 29329 | 10.94 | 9.04 | 9.10 | -2.43 |
| Eastern Platin | ELR | 27992 | 1.54 | 1.18 | 1.22 | -0.35 |
| HudBay Minls | HBM | 25835 | 10.50 | 8.50 | 8.63 | -2.11 |
| Goldcorp | G | 23433 | 34.60 | 29.30 | 29.30 | -6.82 |
| GBS Gold Intl | GBS | 23368 | 0.23 | 0.10 | 0.12 | -0.09 |
| Uranium One | UUU | 23148 | 4.50 | 3.78 | 4.33 | -0.22 |
| Barrick Gold | ABX | 20665 | 35.62 | 31.04 | 31.04 | -5.91 |
| Eldorado Gold | ELD | 17409 | 8.40 | 6.28 | 6.28 | -2.16 |
| Blue Note Mng | BN | 16701 | 0.06 | 0.05 | 0.05 | -0.02 |
TSX greatest percentage change
| VOLUME | WEEK | |||||
| (000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Horizns G Bear | HGD | 3245 | 16.13 | 12.47 | 16.10 | + 38.6 |
| Arehada Mining | AHD | 21 | 0.20 | 0.15 | 0.20 | + 33.3 |
| Genco Res | GGC | 501 | 1.38 | 1.03 | 1.33 | + 20.9 |
| Avnel Gold | AVK | 28 | 0.15 | 0.14 | 0.14 | + 16.6 |
| Delta Uran | DUR | 136 | 0.34 | 0.30 | 0.32 | + 14.2 |
| Rockwell Diam | RDI | 1109 | 0.23 | 0.17 | 0.19 | + 11.7 |
| Moto Gold Mine | MGL | 427 | 2.46 | 2.22 | 2.46 | + 10.3 |
| Southwstrn Res | SWG | 338 | 0.70 | 0.60 | 0.67 | + 9.8 |
| Troy Res | TRY | 47 | 1.63 | 1.44 | 1.48 | + 9.6 |
| Gitennes Expl | GIT | 167 | 0.14 | 0.12 | 0.12 | + 9.0 |
| Sterling Mng | SMQ | 121 | 0.55 | 0.16 | 0.19 | -64.8 |
| Constel Copper | CCU | 5764 | 0.03 | 0.01 | 0.01 | -50.0 |
| Coalcorp wt | CCJ_T | 32 | 0.05 | 0.02 | 0.03 | -50.0 |
| Treasury Metal | TML | 90 | 0.75 | 0.35 | 0.38 | -47.2 |
| Banro Res | BAA | 439 | 3.68 | 2.01 | 2.03 | -44.8 |
| GBS Gold Intl | GBS | 23368 | 0.23 | 0.10 | 0.12 | -42.8 |
| Silver Eagle | SEG | 1175 | 0.43 | 0.20 | 0.22 | -40.5 |
| Silver Wtn wtA | SLW_TA | 242 | 1.34 | 0.90 | 0.90 | -39.6 |
| Tanz Roy Exp | TNX | 739 | 4.39 | 2.82 | 2.90 | -33.9 |
| Carlisle Goldf | CGJ | 135 | 0.06 | 0.04 | 0.04 | -33.3 |
TSX greatest value change
| WEEK | ||||
| VOLUME | CLOSE | CHANGE | ||
| Horizns G Bear | HGD | 3244688 | 16.10 | + 4.49 |
| Moto Gold Mine | MGL | 427085 | 2.46 | + 0.23 |
| Genco Res | GGC | 500897 | 1.33 | + 0.23 |
| Troy Res | TRY | 46800 | 1.48 | + 0.13 |
| Frontera C oppr |
FCC | 2632566 | 2.19 | + 0.09 |
| Uranium Partic | U | 1896124 | 8.71 | + 0.07 |
| Southwstrn Res | SWG | 338430 | 0.67 | + 0.06 |
| Endeavour Finl | EDV | 449891 | 6.10 | + 0.06 |
| Arehada Mining | AHD | 20500 | 0.20 | + 0.05 |
| Atlanta Gold | ATG | 78496 | 0.75 | + 0.05 |
| Potash Cp Sask | POT | 11617956 | 162.50 | -22.26 |
| First Quantum | FM | 2789687 | 51.52 | -16.98 |
| Agrium | AGU | 7878131 | 77.57 | -12.24 |
| Agnico-Eagle | AEM | 5770900 | 51.26 | -9.69 |
| Inmet Mining | IMN | 1419002 | 55.13 | -8.82 |
| Major Drilling | MDI | 657826 | 35.30 | -7.70 |
| Goldcorp | G | 23432992 | 29.30 | -6.82 |
| Silver Std Res | SSO | 1254824 | 20.34 | -6.63 |
| Pan Am Silver | PAA | 1266673 | 22.13 | -6.37 |
| Teck Comin B | TCKB | 15148878 | 38.18 | -6.18 |
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