Toronto Stock Exchange
The S&P/TSX Composite Index began the year looking to shake off 2011’s downtrend, but fears about European debt resurfaced and curtailed gains in the period. Overall, the index was up 91 points to 12,188.64 points.
Markets turned jittery over news from Europe. Rather than lend to one another, European banks were stashing away record amounts of cash with the European Central Bank in a sign of enhanced credit risk. Other news involved a steep equity discount issued by UniCredit SpA, Italy’s largest bank.
The S&P/TSX Global Gold Index managed a 9-point gain, finishing at 375.63 points as gold prices started the year on a strong note, climbing US$45 to US$1,616 per oz.
The S&P/TSX Capped Diversified Metals & Mining Index was also up, gaining 37 points and finishing at 1,147.82 points with prices for aluminum, nickel, tin, lead and zinc all higher. Copper prices, however, fell slightly and finished at US$3.40 per lb.
First Quantum Minerals surprised investors by getting US$1.25 billion for its Congolese assets. The money will come from Eurasian Natural Resources, a company that First Quantum had filed a lawsuit against alleging conspiration with the government of the Democratic Republic of the Congo to expropriate its Frontier and Lonshi copper mines. First Quantum will sell those same mines to Eurasian for US$700 million when the transaction closes, with another US$500 million in a three-year promissory note. The company’s shares climbed 10% to $22.05 for the period.
Rare Element Resources saw its share price climb by 77% to $5.83 after releasing an updated resource estimate that boosted measured and indicated resources by 38% at its Bear Lodge rare earth project in Wyoming. The project has 6.2 million tonnes averaging 3.75% rare earth oxides (REO) in the measured and indicated category and 22 million tonnes of inferred resources at 2.74% REO. Fifteen million tonnes of inferred resources and all of the measured and indicated resources are near-surface, oxide mineralization. The company is working on a prefeasibility study that it expects to finish before April.
Western Lithium‘s shares shot up 36% to 34¢ for the period. The company is developing the Kings Valley lithium project in Nevada, and in mid-December released results from a prefeasibility study outlining a US$248-million mining facility that would generate a net present value of $552 million using an 8% discount rate and a 24% internal rate of return.
Gran Colombia Gold saw its share price fall by 13% to 45¢. The company is negotiating an agreement with artisanal miners at its Marmato project in Colombia and mapping out a plan to move the town of Marmato 1.5 km away, so that it can build an open-pit mine.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR345670.580.540.57+0.03
Canada LithiumCLQ213780.510.430.48-0.01
Cline MngCMK201422.131.661.91+0.30
Potash Cp SaskPOT1450644.3542.6742.94+0.83
Kinross GoldK1398612.8411.8312.67+1.04
Lake Shore GldLSG137911.451.261.43+0.15
Lundin MngLUN116024.464.044.27+0.40
Mercator MnlsML113161.801.581.70+0.19
GoldcorpG1098546.7044.9845.20-0.01
Alexis MinlsAMC103200.050.040.05+0.01
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Serabi GoldSBI4650.170.120.17+88.8
Rare Elemnt RsRES19386.103.235.83+76.6
First UraniumFIU39320.250.170.22+37.5
Western LithiuWLC10400.360.260.34+36.0
Peregrine DiamPGD7450.830.580.80+35.5
Minco SilverMSV5112.842.062.67+34.1
Cobriza MtlsCZA380.190.150.18+28.5
Stornoway DiamSWY10831.190.911.14+26.6
Caledonia MngCAL7600.100.080.10+25.0
Alexis MinlsAMC103200.050.040.05+25.0
Magma MetalsMMW22350.090.080.08-20.0
Lipari EnergyLIP20220.800.700.74-17.7
INV MetalsINV3820.260.190.19-17.3
Forsys MetalsFSY2270.720.620.62-15.0
Gran ColombiaGCM44670.560.440.45-13.4
Coro MiningCOP200.320.260.30-11.7
St AugustineSAU12490.350.290.30-11.7
CIC EnergyELC3330.950.850.85-10.5
Yukon-Nev GoldYNG48030.310.250.26-10.3
Aeroquest IntlAQL1270.100.090.09-10.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
AgriumAGU271275971.80+3.42
Royal GoldRGL2827371.50+3.28
Barrick GoldABX931576348.87+2.72
Rare Elemnt RsRES19377375.83+2.53
Teck BTCKB668880438.35+2.44
Allied NevadaANV50719533.04+2.09
Franco-NevadaFNV195100940.86+2.08
First QuantumFM925601122.02+1.97
Detour GoldDGC142231227.08+1.93
Agnico-EagleAEM243583138.82+1.77
Walter EnergyWLT1174960.32-1.42
Horizns G BearHGD14643398.70-0.81
Karnalyte ResKRN12437410.14-0.44
Extract ResEXT109008.74-0.25
Uranium ParticU9956545.45-0.17
Talison LithmTLH2840133.23-0.17
Lipari EnergyLIP20217750.74-0.16
Alexco ResAXR2765046.77-0.16
Orezone GoldORE2802252.48-0.15
B2GoldBTO63030642.99-0.11
TSX Venture Exchange
The first trading period of 2012 saw the S&P/TSX Venture Composite Index climb 41.07 points to 1,525.73 points. Volume was down at an average of 75 million shares traded daily.
Brixton Metals saw 17.5 million shares traded after announcing an impressive intercept from the Thorn project in northwest B.C. Brixton hit 95 metres grading 904 grams silver per tonne on a silver-equivalent basis starting at 6 metres depth. The intercept grade breaks down to 1.71 grams gold per tonne, 628.30 grams silver, 0.12% copper, 3.31% lead and 2.39% zinc. The company’s share price more than doubled at one point to 34¢ before closing up 4¢ at 20¢. Brixton is earning in 51% of the project from Kiska Metals, which climbed 4¢ to 36¢.
Rio Alto Mining rose 46¢ to $3.65 with 6.7 million shares traded after releasing 2011 production numbers and an updated resource for its La Arena project in Peru. The oxide resource, using a 0.1-gram-gold cut-off, stands at 100.7 million measured and indicated tonnes grading 0.46 gram gold per tonne for 1.5 million contained oz. gold. The sulphide resource, using a 0.18% copper equivalent cut-off, came in at 313 million indicated tonnes grading 0.29% copper and 0.24 gram gold per tonne for 2 billion lbs. copper and 2.4 million oz. gold, plus 320 million inferred tonnes grading 0.3% copper and 0.2 gram gold for a further 2.1 billion lbs. copper and 2.1 million oz. gold. As part of development work last year, Rio Alto produced 51,400 oz. gold from La Arena.
Prophecy Platinum was the biggest value gainer, climbing 60¢ to $2.65 after announcing it planned an early start to drilling in 2012. The company anticipates underground drilling at its Wellgreen project in the Yukon this January, with 9,000 metres planned. Along with early underground drilling, Prophecy has contracted a minimum 10,000 metres of surface drilling starting before June with two to four drills operating in the area.
Rare earth explorers Quest Rare Minerals and Tasman Metals were the second- and third-highest value gainers, respectively climbing 57¢ to $2.79 and 56¢ to $2.14. Neither company released news in the period, but Toronto-listed Rare Element Resources proved rare earth stocks have potential life after climbing 77% in the period to $5.83 on a positive resource update. All three companies recently hit 52-week lows.
Penny-stock Canasia Industri
es had the second-highest trading volume at 8.5 million shares, as it cli+++++mbed from 2¢ to 5¢. The company arranged a loan facility of up to $200,000 at 6% per year that also has Canasi+++a issuing the lender 20% of the loan value in shares. Canasia has signed an option agreement on a 222-sq.-km property that is prospective for aluminous clay and rare earths in Quebec’s Gaspé Bay region. Canasia has 130 million shares outstanding.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Brixton MtlsBBB174530.340.160.20+0.03
Canasia IndustCAJ85210.050.030.05+0.02
Rio Alto MngRIO66873.703.203.65+0.46
Midlands MinlsMEX65840.060.040.06+0.01
Iberian MnlsIZN65121.101.091.090.00
Royal CoalRDA60480.070.050.06+0.01
Great WesternGWG55740.550.420.52+0.11
Sunridge GoldSGC46130.500.430.47+0.04
Redhill ResRHR38170.130.080.12+0.03
Northern Sup RSUP32250.370.280.32+0.03
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Cougar MnlsCOU16210.040.020.03+200.0
Endurance GoldEDG810.100.060.10+100.0
Lakewood MngLKW500.020.010.02+100.0
MazarinMAZH1440.040.020.04+100.0
GTO ResGTR350.110.060.11+83.3
Bold VentBOL1450.200.120.18+80.0
Frontline GoldFGC760.090.050.09+80.0
Marifil MinesMFM10620.270.140.25+78.5
TTM ResTTQ7290.170.090.17+70.0
Canasia IndustCAJ85210.050.030.05+66.6
Cascade ResCC120.030.030.03-50.0
Finlay MinrlsFYL1300.080.060.08-46.6
Kenieba GoldfKEN1000.060.050.05-37.5
Bearing ResBRZ1660.550.400.40-33.3
Iconic MnlsICM640.070.060.07-30.0
Silver PursuitSPF550.100.060.07-30.0
Stina ResSQA1910.160.140.14-30.0
Sniper ResSIP310.160.140.15-28.5
San Marco ResSMN860.130.080.08-27.2
Rara Terra MnlRTX180.150.100.11-26.6
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Prophecy PlatNKL2951612.65+0.60
Quest Rare MnlQRM11288932.79+0.57
Tasman MetalsTSM12799502.14+0.56
Verde PotashNPK1982787.47+0.47
Rio Alto MngRIO66873823.65+0.46
Avino SilverASM960551.69+0.27
CuOro ResCUA3360801.40+0.22
Orex MinlsREX1572590.76+0.20
Quaterra ResQTA787000.73+0.19
Anooraq ResARQ2643150.57+0.18
Maudore MinlsMAO464655.00-0.47
Anfield NickelANF1349365.35-0.31
St Elias MnsSLI8434201.70-0.29
Callinan RoyalCAA1469582.72-0.23
Bearing ResBRZ1655860.40-0.20
Bear Creek MngBCM4972663.37-0.17
Rye Patch GoldRPM27489330.54-0.15
Red Eagle MngRD1612800.61-0.15
Galway ResGWY4061411.51-0.14
Chesapeake GldCKG35715410.00-0.14
U.S. markets
The first week of 2012 started better than expected for U.S. equities with the Dow Jones Industrial Average up 1.17%, or 142.36 points, to 12,359.92 points and the S&P 500 Index rising 1.61%, or 20.21 points, to finish at 1,277.81.
The trading week saw a slight uptick in sentiment as data showed employment growth in the U.S. accelerated in the last month of 2011 and the jobless rate dropped to a near three-year low. But continuing worry about the Eurozone debt crisis and fear that China’s economy is slowing was underscored in volatile copper prices. After losing a fifth of its value in 2011, the copper price hit a three-week high on Jan. 3, with three-month copper on the London Metal Exchange closing at US$7,790 per tonne. The price fell the next day by 3.2% to US$7,540 a tonne, before ending the week at US$7,580 a tonne on Jan. 6.
Rare Element Resources surged 77.2%, or US$2.51 per share, to US$5.76 after the junior updated the resource estimate for its Bear Lodge project in Wyoming. Measured and indicated resources increased 38% to 6.2 million tonnes averaging 3.75% rare earth oxides (REO) at a 1.5% REO cut-off grade, up from 4.4 million tonnes averaging 3.77% REO last year. Inferred resources add 22 million tonnes at 2.74% REO. All of the measured and indicated resources and 15 million tonnes of the inferred resources are near-surface oxide and oxide-carbonate mineralization.
Shares of Quaterra Resources rose 27.2% to 70¢, on the news the company validated a historic copper resource on the Yerington copper project in Nevada. At a cut-off grade of 0.2% total copper, measured and indicated resources at Yerington total 65 million tonnes averaging 0.30% total copper for 430 million lbs. copper. Yerington’s inferred primary copper resource adds 58 million tonnes averaging 0.25% total copper for 323 million contained lbs. copper. Acid-soluble, oxide-chalcocite mineralization includes a measured and indicated resource of 8.5 million tonnes averaging 0.30% total copper for 57 million lbs. copper, with an inferred resource of 7.8 million tonnes averaging 0.28% total copper for 47 million lbs. copper.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA1502499.508.899.16+0.51
Freeport McMo*FCX5474140.0038.1238.87+2.08
Potash C Sask*POT3995543.8841.6541.77+0.49
Barrick Gold*ABX2820348.5246.2047.54+2.29
Hecla Mining*HL270405.975.435.65+0.42
Alpha Nat Res*ANR2677622.3721.1221.20+0.77
Kinross Gold*KGC2628912.5411.7112.30+0.90
Mosaic*MOS2554355.2551.1552.67+2.24
Peabody Enrgy*BTU2228936.8734.7235.99+2.88
Arch Coal*ACI2212915.5814.7215.36+0.85
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Rare Elemt Re*REE151325.943.205.76+77.2
Starfield Res*SRFDF1270.030.020.03+50.0
America West*AWSR230.300.210.30+42.8
Anooraq Res*ANO18730.550.380.55+41.0
Legend Intl H*LGDI11700.150.110.15+36.3
China Shen Zh*SHZ861.771.301.70+33.8
Gold Am Mng*SILA2320.050.030.04+33.3
Quaterra Res*QMM580.710.570.70+27.2
Caledonia Mng*CALVF5910.100.080.10+25.0
Quest Rare Mn*QRM14122.922.232.74+24.5
Douglas Lk Ml*DLKM4880.120.080.09-30.7
Linux Gold*LNXGF1330.040.030.03-25.0
Canarc Res*CRCUF480.110.090.09-18.1
Miranda Gold*MRDDF400.280.240.24-7.6
US Antimony*UAMY762.442.152.25-6.2
Alexco Res*AXU13257.146.596.59-3.2
Walter Energy*WLT157364.1058.5758.73-3.0
Revett Mnls*RVM2944.964.604.60-2.5
Midway Gold*MDW2252.212.062.06-2.3
Rubicon Mnls*RBY28224.013.673.70-2.1
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Alliance Rs P*ARLP61846182.20+6.62
Randgold Res*GOLD1664185107.12+5.02
Cliffs Nat Rs*CLF1413927166.59+4.24
Mesabi Trust*MSB67558528.71+3.61
Peabody Enrgy*BTU2228857235.99+2.88
Agrium*AGU107548669.98+2.87
Rare Elemt Re*REE151324455.76+2.51
Barrick Gold*ABX2820283547.54+2.29
Royal Gold*RGLD198934969.57+2.29
Mosaic*MOS2554317752.67+2.24
Walter Energy*WLT157343858.73-1.83
Compass Mnls*CMP47071368.38-0.47
Goldcorp*GG1793313143.99-0.26
Yanzhou Coal*YZC71683420.97-0.24
Alexco Res*AXU13248816.59-0.22
US Antimony*UAMY755752.25-0.15
MDU Res*MDU215359321.33-0.13
North Am En P*NOA445106.31-0.13
Revett Mnls*RVM2936244.60-0.12
Rubicon Mnls*RBY28223053.70-0.08
Be the first to comment on "Market news"