Market news

Toronto Stock Exchange

The S&P/TSX Composite Index fell 29 points to finish the March 19 to 23 period at 12,465.66 points. The sell-off came after market participants were surprised by bad manufacturing numbers out of China and Europe.

The numbers fed the thesis of slower growth in China going forward, which meant commodities had a hard time gaining traction. The S&P/TSX Capped Metals & Mining Index fell 28 points to 1,064.90 points, with investors fearing that less growth in China would mean less demand for resources and, as a result, prices for copper, aluminum, nickel, tin, lead and zinc all fell. 

The move out of resources hurt the Canadian dollar. It shed 0.8 of a cent against the greenback, but the flight to safety meant the price of gold firmed up after a sell-off in the previous period. The yellow metal was up US$3 to US$1,662.40 per oz., and the Global Gold Index was flat at 337.82 points.

Long-term investors in Laramide Resources were given a sign that their patience could pay off. The company’s flagship Westmoreland project — located in northwestern Queensland, Australia — has had its development stalled for years with the ruling Labor Party upholding a moratorium on uranium mining. But after five consecutive terms in office the party was defeated by the Liberal National Party (LNP). While the provincial party hasn’t yet voiced its view on uranium mining, the Federal LNP is supportive. Westmoreland is considered one of the largest and highest quality uranium development projects in Australia. Laramide shares wer1e up 26% to $1.40 for the period. 

Jaguar Mining felt the pinch of rising costs and falling profits despite increasing gold production for 2011. The company reported year-end results that showed a loss of US$33.7 million, or 78¢, after reporting a gain of US$22.2 million, or 26¢ per share for the previous year. The news sent the company’s shares down 75¢ to $5.02 for the period. 

Nautilus Minerals gained 18% to end at $2.25 after announcing a solid financial position in 2011, with US$149.4 million in cash and equivalents. It was an eventful year for the company, which earned its first deep sea, hard-rock mining lease for its Solwara 1 project in Papua New Guinea. Despite the positive momentum, Nautilus suffered a US$34-million loss for the year. 

Katanga Mining saw its shares gain 14% to $1.11 for the period despite announcing a decrease in resources at Kamoto Copper Company, in which Katanga has a 75% stake. While overall resources decreased by 9.9 million tonnes — representing 2% of total resources — the average copper grade actually increased by 2%. The resource cut didn’t dent the company’s shares, with proven and probable reserves falling by just 1 million tonnes, despite 4.5 million tonnes mined in 2011.

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Avion GoldAVR263541.371.031.22-0.08

Torex GoldTXG209292.201.832.14+0.18

Eldorado GoldELD1810413.5412.7713.41-0.04

Kinross GoldK1744110.209.6810.05+0.23

Eastern PlatinELR133240.490.410.45-0.04

Potash Cp SaskPOT1247146.8944.6045.55+0.15

SemafoSMF121425.435.005.17+0.01

New GoldNGD120959.729.019.35-0.20

Yamana GoldYRI1172016.0314.8615.92+0.53

Barrick GoldABX1107144.0642.3743.80+0.18

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Laramide ResLAM11341.401.071.40+26.1

Alexis MinlsAMC18610.060.050.06+20.0

Nautilus MinlsNUS6072.291.862.25+18.4

TriAusMinTOR7290.160.140.14+16.6

Katanga MngKAT29631.110.971.11+14.4

Corvus GoldKOR2430.880.760.88+14.2

Acadian MngADA340.170.140.17+13.3

Emed MiningEMD36490.200.180.19+11.7

Vaaldiam ResVAA890.140.100.11+10.0

Jayden ResJDN4870.110.100.11+10.0

Rockgate CapRGT16000.990.700.70-27.0

Chalice Gold MCXN860.220.200.20-25.9

Starfield ResSRU18860.030.020.03-25.0

Homeland EnrgyHEG5230.050.030.04-20.0

Coro MiningCOP720.500.410.41-18.0

Polar Star MngPSR3260.340.280.28-17.6

Pretium ResPVG504116.8313.0313.88-17.5

Claude ResCRJ13541.241.051.06-15.2

XinergyXRG2652.852.392.39-14.9

Cobriza MtlsCZA990.250.170.18-14.2

TSX greatest value change

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VOLUMECLOSECHANGE

Royal GoldRGL2979164.33+1.18

Harry WinstonHW117278415.20+1.14

AgriumAGU421337886.35+1.13

GoldcorpG1049900044.60+0.92

Alamos GoldAGI291422717.21+0.91

Franco-NevadaFNV315234941.94+0.91

Silver WheatonSLW469663733.66+0.77

Pan Am SilverPAA286182821.66+0.57

Endeavr SilverEDR12051019.84+0.55

Golden MnlsAUM1671717.80+0.55

Newmont MngNMC2875353.89-3.86

Pretium ResPVG504133113.88-2.96

Teck BTCKB839433135.14-1.61

Russell MetalsRUS70622526.42-1.50

Ivanhoe MinesIVN310598316.52-1.23

Major DrillingMDI127609316.85-1.07

Inmet MiningIMN88844757.00-1.04

Jaguar MngJAG10486545.02-0.75

Centerra GoldCG144685215.80-0.75

Sentry Sl PrmMPME2179659.25-0.74

TSX Venture Exchange

Three days of losses outweighed two days of gains in the period, leaving the S&P/TSX Venture Composite Index down 50.65 points to 1,555.52. Volume was down for the whole period, averaging 84 million shares traded daily as concerns about China’s growth potential weighed on markets.

The downward trend blocked runaway value gains, with Pacific Booker Minerals taking the top spot on a 42¢ gain to end at $9.25. The tightly held company, with only 12.2 million shares out, saw 46,000 shares traded during the period after announcing its mining lease application had been accepted for its Morrison copper-gold project in B.C. The company brought the project to feasibility in 2003 and then got tied up in a series of lawsuits, but looks to finally be moving towards building a mine.

Northern Graphite rose as much as 84¢ before ending up 38¢ at $2.63 with 5.4 million shares traded, as interest in the graphite sector remains high. The company closed a $10.6-million financing at the end of the last period as it advances its Bissett Creek graphite project in Ontario. Northern Graphite had planned to have a feasibility study out on the project by the end of 2011 but delays in starting a pilot plant pushed back the date. The company is anticipating release shortly.

Sutter Gold Mining’s share price more than doubled at one point on no news, climbing 32¢ to 53¢ over three days before retreating and ending up 14¢ at 35¢. The company, which traded fairly flat around 20¢ for several months on little volume, stated it was unaware of any reason for the activity. In early March the company received a building permit for its Lincoln gold project in California, and shortly after announced it had hit half a metre of 148 grams gold per tonne, as well as several double-digit gold hits. The company has 117 million shares out.

The coup in Mali sent several companies down, as the situation on the ground remains unclear. Great Quest Metals was the most notably affected company on the Venture with a $1.20 drop to $1.97, though the decline comes after a strong climb from a 52-week low of $1.31 in January. The company is working on engineering for its Tilemsi phosphate project and has had plans to restart groundwork after the country’s scheduled April electi
ons. Robex Resources, which is actively drilling its Nampala project in Mali, dropped 6¢ to 16¢ before ending at 18¢ with almost 7 million shares traded.

Sandstorm Gold was again the most traded company on the index, with 18 million shares traded. The volume had the company up 11¢ to a 52-week high of $2.02, before dropping for two days to end down 10¢ at $1.81. Sandstorm Metals and Energy was the third most traded company with 7.8 million shares traded, though it too ended down with a 3¢ decline to 43¢. Both companies released annual financial results the week before.

TSX-V most active issues

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(000s)HIGHLOWCLOSECHANGE

Sandstorm GldSSL179682.021.791.81-0.02

Great WesternGWG119810.620.520.52-0.03

Sandstorm Mt&ESND77800.470.410.43-0.03

Robex ResRBX69660.230.160.18-0.03

Midlands MinlsMEX68590.050.040.05+0.01

Aurcana CorpAUN62510.940.860.92+0.02

Plexmar ResPLE61610.040.010.030.00

Placer DomePDG58170.740.650.65-0.09

Northern GraphNGC53593.042.252.63+0.36

Trelawney M&ExTRR49212.432.092.28-0.07

TSX-V greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Sutter GoldSGM11530.510.210.35+84.2

Colstar VentCTR2320.140.090.14+75.0

Intigold MinesIGD4720.250.140.25+66.6

Getty CopperGTC2360.100.060.06+50.0

Cascade ResCC1030.030.020.03+50.0

Search MnlsSMY5930.440.260.38+46.1

Superior MngSUI4050.100.070.10+42.8

Great Bear ResGBR100.100.100.10+42.8

Invenio ResIVO1550.140.100.14+40.0

Nubian ResNBR100.220.220.22+37.5

Bonanza ResBRS5580.360.190.20-45.9

Jazz ResJZR930.170.130.13-40.9

Goldbank MngGLB120.310.190.19-40.6

Kenieba GoldfKEN1640.070.060.06-40.0

Great Quest MeGQ7443.201.901.97-38.8

Starfire MnrlsSFR280.170.140.14-36.3

Star UraniumSUV3800.030.020.02-33.3

Endurance GoldEDG2300.080.060.06-33.3

China Mnls MngCMV11620.080.050.05-28.5

Rockland MnlsRL12240.120.100.10-28.5

TSX-V greatest value change

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VOLUMECLOSECHANGE

Pac Booker MinBKM446389.25+0.42

Northern GraphNGC53594552.63+0.36

Astur GoldAST2306251.40+0.35

Atacama Pac GdATM10828764.25+0.25

Lumina CopperLCC20288315.87+0.25

Focus MetalsFMS45193811.16+0.18

Sutter GoldSGM11530040.35+0.16

Argex Silver CRGX21142510.80+0.13

Brazil ResBRI4879861.52+0.12

Search MnlsSMY5931440.38+0.12

Great Quest MeGQ7443541.97-1.25

Prophecy PlatNKL4460592.90-0.28

Hana MngHMG12734231.64-0.26

Sunward ResSWD9674941.98-0.24

Gold CanyonGCU14587151.63-0.23

Cayden ResCYD3095301.89-0.22

Gogold ResGGD1777261.35-0.20

Clifton StarCFO6731301.72-0.19

Newstrike CapNES4879832.68-0.18

IMPACT SilverIPT3199091.65-0.18

U.S. markets

The Dow Jones Industrial Average and the S&P 500 Index lost some ground during the March 19 to 23 trading week. The Dow was down 1.15% to 13,080.73 and the S&P posted its second negative week so far this year, falling 0.50% at 1,397.11. It was the Nasdaq’s sixth straight week of gains, up 0.4% to 3,067.92 points. 

Harry Winston Diamond climbed 7.9%, or US$1.12 per share to US$15.25 on no news. Speculation that the diamond miner and luxury jeweller might bid for BHP Billiton’s majority stake in the Ekati diamond mine in the Northwest Territories may have driven up stocks. Harry Winston is already a partner, with Rio Tinto at the Diavik mine 100 km from Ekati. Harry Winston will release its fiscal 2012 fourth-quarter and year-end results on April 4, including an updated Diavik life-of-mine plan presenting anticipated annual production by pipe, revenue, operating costs and capital costs.

U.S. Antimony edged 60¢, or 19% higher to US$3.75 per share after reporting on March 15 that sales hit a record US$13.1 million last year, up 45% from 2010, with pre-tax income jumping 138% to US$743,000. The Montana-based company produced 204,985 lbs. antimony metal in Mexico last year while awaiting mining at Los Juarez and completion of a floatation mill. In February the company reported starting a floatation mill in Guanajuato and installing a large crusher to handle oversized rock from its Los Juarez open pit and dumps, where mining has started at five faces. The company is also expanding furnace capacity at its Madero smelter in Coahuila to handle floatation concentrates. 

Franco-Nevada reported 2011 financial results and saw its share price rise 56¢ to US$41.95 for the week. Last year its revenues reached US$411.2 million — up by 81% over 2010 levels — and the royalty company expects revenues this year in the range of US$430 million to US$460 million before payments under stream agreements. Franco Nevada has added 12 royalties and streams. The company invested over US$1.2 billion in 2011, and has made three acquisitions so far this year totalling US$110 million.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA10675310.759.9510.11-0.43

Freeport McMo*FCX10087440.1937.9038.48-0.08

Alpha Nat Res*ANR5057717.7915.6115.98-1.38

Peabody Enrgy*BTU4643933.7030.0330.19-3.06

Potash C Sask*POT4356947.2345.0045.52-0.39

Kinross Gold*KGC4040410.299.7510.03+0.14

Arch Coal*ACI3971312.5311.5011.66-0.74

Barrick Gold*ABX3850944.4042.5043.76-0.19

Newmont Mng*NEM3465854.3552.0653.32-0.43

Hecla Mining*HL295704.724.364.61+0.08

U.S. greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Apolo Gold*APLL620.580.140.40+166.6

US Antimony*UAMY6063.833.043.75+19.0

Canarc Res*CRCUF140.120.100.12+9.0

Tanz Roy Exp*TRX40685.054.455.05+8.8

Harry Winston*HWD63015.3214.2015.25+7.9

Paramount Gld*PZG40572.442.212.42+7.5

Vista Gold*VGZ15673.222.943.21+5.5

Avalon Rare M*AVL100243.132.782.93+5.0

Nevsun Res*NSU64073.653.123.54+4.4

Minco Gold*MGH2380.720.660.70+4.4

Tombstone Exp*TMBXF12550.050.030.03-25.0

Fischer-W Gld*FWGO13310.060.030.04-20.0

Gold Am Mng*SILA3370.050.040.04-20.0

Caledonia Mng*CALVF6250.100.080.09-18.1

Cornerstone C*CTNXF150.080.070.07-12.5

Anooraq Res*ANO3070.480.400.42-12.5

Samex Mng*SMXMF2290.590.490.50-12.2

Cream Mnrls*CRMXF1090.250.220.23-11.5

Radius Gold*RDUFF240.270.240.25-10.7

Randgold Res*GOLD9673105.2585.6091.32-10.0

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Harry Winston*HWD62995715.25+1.12

Molycorp*MCP1326750029.92+1.10

US Antimony*UAMY6061963.75+0.60

Franco-Nevada*FNV107794241.95+0.56

Natural Rs Pt*NRP24184425.14+0.54

Goldcorp*GG2351714444.55+0.46

Agrium*AGU156374486.50+0.43

Silver Wheatn*SLW2627854833.61+0.43

Tanz Roy Exp*TRX40677965.05+0.41

Yamana Gold*AUY663169215.92+0.39

Randgold Res*GOLD967319891.32-10.17

BHP Billi-BBL*BBL445029160.74-3.50

BHP Billi-BHP*BHP1537396471.58-3.11

Rio Tinto*RIO331283953.74-3.08

Peabody Enrgy*BTU4643943130.19-3.06

Compass Mnls*CMP33269669.42-2.14

Teck B*TCK1420748535.12-2.00

Ivanhoe Mines*IVN865443716.52-1.40

Alpha Nat Res*ANR5057700015.98-1.38

Cliffs Nat Rs*CLF2343332670.78-1.25