Toronto Stock Exchange

The S&P/TSX Composite Index rallied late in the period but finished lower than where it began, shedding 145 points to 11,514.53. After a six-day losing streak the index rebounded on July 13 owing to speculation that China would stimulate its economy after reporting weak growth.

Despite the price of gold climbing US$10 to US$1,592 per oz., miners continued to feel slighted as the S&P/TSX Global Gold Index fell 15 points to finish at 289.01. The diversified miners didn’t fare any better as the S&P/TSX Capped Metals & Mining Index was off 43 points to 826.41, despite copper prices rising US9¢ to US$3.50 per lb.

Rumblings of a potential takeover had Inter-Citic Minerals’ shares on the rise. After heavy trading the company was forced by the exchange to issue a release that said it was in takeover negotiations. The suitor was not named, however, due to a confidentiality agreement. The news was enough to send the stock up 50% to $1.59. Inter Citic is focusing on its Dachang gold project in China, and released an updated resource estimate last month that increased measured and indicated resources by 320,000 oz. gold, and inferred resources by 250,000 oz.  

Takeover news moved shares of La Mancha Resources. The company was up 43% to $3.43 after entering an agreement with Weather Investments that will see Weather pay $3.50 a share in cash for all of La Mancha’s equity. La Mancha’s key assets are in Sudan, Côte d’Ivoire and Australia. Weather is based in Egypt.

The drill was behind the better days seen by Evolving Gold. The company’s shares rose 36% to 32¢ after reporting multiple high-grade intervals at its Carlin project in Nevada. Highlight intercepts included 9 metres grading 22 grams gold and 3 metres grading 33.1 grams gold.

But the drill wasn’t so kind to Semafo. The company announced disappointing exploration results, and that was seen as the main driver behind its market fall. The company’s share price fell 37% to $3.48 after releasing long-awaited results from its Mana gold mine in Burkina Faso. The US$39-million exploration program, which included 438,000 metres of drilling, indicated that mineralization may not support planned capital expenditures. The company was looking to find enough gold to justify gold production increased by 120,000 oz. per year.

The latest actions of the Bolivian government induced a sell-off of South American Silver shares. The company’s stock dropped 55% to 46¢ after the government there said it would expropriate the company’s Malku Khota silver-indium-gallium project. The news comes in the wake of the Bolivian government’s nationalization of Glencore International’s Colquiri lead-tin mine in July, and its expropriation of Spanish energy firm Red Electra’s local grid in May.