Market news

Toronto Stock Exchange

Investors took a dismal view of the global economy and their mood took a toll on Canadian markets, as the S&P/TSX Composite Index fell 169 points to finish the holiday shortened period at 12,202 points.

Investors turned sour after Alcoa — a bellwether of the global economy — reported disappointing earnings and issued a weaker outlook on global aluminum demand, and Standard & Poor’s downgraded Spain’s sovereign credit rating two notches, to just above “junk” status amidst a deepening economic recession.

Gold failed to rally against the grim economic outlook, and the price for the metal fell US$37 to US$1,739 per oz. That drop pulled the S&P/TSX Global Gold Index down 11 points to 335 points. The diversified miners slumped as well, with the S&P/TSX Capped Diversified Metals and Mining Index falling 8 points to 906.02 points, as the price for copper fell 4¢ to US$3.69 per lb.

AuRico Gold was one of the few good stories amongst gold miners for the period. The company’s shares rose 21% after it announced selling its Ocampo mine in Mexico for $750 million. AuRico said that after paying off $300 million in debt, most funds are expected to go back to investors in the form of a one-time payment. The move highlights investors’ growing appetite for yield. Buying up Ocampo is Mexican billionaire Carlos Slim, who is making the acquisition through his Minera Frisco.

Shares of Keegan Resources were up 15% to $3.64 on the back of a new resource estimate for the company’s Esaase gold project in Ghana. Keegan also announced it would cut projected costs at the mine by using a selective approach with lower mining rates and higher grades. The scaled-down development plan should lower capital expenditures to US$260 million, with a drop in cash operating costs as well. Global resources fell under the new calculation by 2%, but the average grade jumped by 55%. Measured and indicated resources now stand at 68.92 million tonnes grading 1.73 grams gold per tonne for 3.83 million oz. gold, and inferred resources add 22.23 million tonnes grading 1.75 grams gold for 1.25 million contained oz. gold.

A strategic partnership for St. Augustine Gold & Copper had the company’s shares up 40% to 41¢ for the period. Its new partner will be Philippine-based Queensberry Mining and Development, which will take a 24% interest in the company through option agreements and a private placement.

Ram Power’s shares ran up 23% to 25¢ after it said the Nicaraguan government approved a power sales tariff increase for its San Jacinto-Tizate geothermal project. The tariff increase is 17% and goes into effect Oct. 1, with an annual increase of 3% until 2022. With the increase, the company can recover unanticipated costs associated with resource development and plant construction.

TSX most active issues

    Volume Week
    (000s) High Low Close Change
Kinross Gold K 16515 10.57 9.95 9.99 0.6
Starfield Res SRU 14237 0.02 0.01 0.01 0.01
Teck Res B TCKB 13248 30.92 29.81 29.89 0.21
AuRico Gold AUQ 12010 7.62 6.26 7.07 + 0.55
Barrick Gold ABX 10109 40.64 38.12 38.31 2.82
Eldorado Gold ELD 9688 14.65 13.7 13.75 0.82
Baja Mng BAJ 9304 0.13 0.09 0.11 + 0.02
B2Gold BTO 9096 4.08 3.88 3.93 0.13
Lake Shore Gld LSG 8114 0.97 0.83 0.85 0.11
Yamana Gold YRI 7605 18.87 17.95 18.34 0.26

TSX greatest percentage change

    Volume Week
    (000s) High Low Close Change
Redzone Res REZ 401 0.14 0.1 0.14 + 47.3
St Augustine SAU 2095 0.45 0.29 0.41 + 39.6
Homeland Enrgy HEG 314 0.02 0.02 0.02 + 33.3
Baja Mng BAJ 9304 0.13 0.09 0.11 + 23.5
Ram Power RPG 6180 0.28 0.18 0.25 + 22.5
Ratel Grp RTG 408 0.16 0.13 0.15 + 20
Lucara Diam LUC 3398 0.61 0.5 0.6 + 20
CanAlaska Uran CVV 135 0.25 0.2 0.25 + 19
Keegan Res KGN 2369 3.77 3.04 3.64 + 14.8
Candente
Gold
CDG 19 0.19 0.15 0.19 + 12.1
Starfield Res SRU 14237 0.02 0.01 0.01 50
EMC Metals EMC 420 0.07 0.05 0.05 28.5
Intrepid Mns IAU 980 0.4 0.34 0.35 24.1
Carlisle Goldf CGJ 917 0.2 0.15 0.17 21.4
Minco Gold MMM 29 0.68 0.56 0.56 21.1
Northcliff Res NCF 199 0.43 0.35 0.35 20.4
Levon Res LVN 1035 0.45 0.38 0.39 19.7
QMX Gold QMX 673 0.3 0.23 0.24 18.6
NovaCopper NCQ 100 2.1 1.8 1.8 17.8
Rio Verde Mnls RVD 2214 0.28 0.24 0.24 17.2

TSX greatest value change

    Week
    Change Close Change
Walter Energy WLT 24794 34.74 + 2.87
Horizns G Bear HGD 1030162 8.92 + 0.66
AuRico Gold AUQ 12010338 7.07 + 0.55
Karnalyte Res KRN 101934 8.49 + 0.49
Keegan Res KGN 2369153 3.64 + 0.47
Coeur d Alene CDM 35707 28.39 + 0.43
Harry Winston HW 670648 12.84 + 0.36
Gabriel Res GBU 1958649 2.12 + 0.12
St Augustine SAU 2094565 0.41 + 0.12
Lucara Diam LUC 3397625 0.6 + 0.1
Royal Gold RGL 55897 86.7 9.59
Barrick Gold ABX 10109399 38.31 2.82
Goldcorp G 7601344 42.67 2.51
Franco-Nevada FNV 2106294 57.3 2.16
Agnico-Eagle AEM 1941949 50.5 1.88
Tahoe Res THO 742797 19.84 1.72
Seabridge Gold SEA 78233 17.61 1.15
Silver Wheaton SLW 4763322 38.11 1.13
Agrium AGU 2482166 101.16 1.04
Silver Std Res SSO 590323 14.26 1.03

TSX Venture Exchange

The S&P/TSX Venture Composite Index fell 52.2 points, or 3.9%, during the shortened period, eventually closing at 1,292.81 points.

The week started out on a sombre note, with the International Monetary Fund (IMF) cutting its growth forecast for the world economy by 0.2% to 3.3% in 2012. The IMF cited “sluggish growth and uncertainty” amongst advanced economies as a major concern, which in turn has affected developing countries through “trade and financial channels.”

Falling commodity prices also took a toll on the market. Gold was off US$37 per oz. and closed at US$1,739. Copper dropped 4¢ to US$3.69 per lb. Brent crude oil finished with a 56¢ decline, at US$115.16 per barrel.

Explorer Ascot Resources jumped 25¢ before closing at $1.39 per share. On Oct. 10, the company released drill results from its Premier gold-silver property in B.C.’s Cassiar mining district. Ascot is focusing on three target zones at Premier named Big Missouri, Martha Ellen and Sparky. Drilling encountered widespread gold and silver mineralization in all three areas, with highlights including: 18 metres averaging 1.99 grams gold per tonne from 165 metres depth in hole 12-373; 33 metres grading 1.17 grams gold and 62 grams silver from 302 metres depth in hole 12-381; and 21 metres of 1.15 grams gold and 50 grams silver from 172 metres depth in hole 12-391.

Yukon-focused explorer Goldstrike Resources plunged 46¢ per share, or 61%, en route to a 29¢ close after releasing results from a 2012 field exploration program at its Plateau gold property in the Yukon. The company released high-grade grab samples — highlighted by 530 grams gold from a rock grab at its Plateau South target — but a scout drilling campaign failed to return significant gold intersections to accompany the high grades at surface. Prospect drilling at the company’s Goldstack zone on its Plateau South property targeted surface mineralization defined by a composite channel cut that carried 14.26 grams gold over 2.5 metres. A scout hole at the site cut 9 metres averaging 0.7 gram gold.

Comstock Metals also had a tough run following the release of Yukon drill
results. The gold explorer dropped 21¢, or 38%, before closing at 34¢ per share. Comstock released two drill holes from its QV project in the Yukon’s White Gold district. Though the initial results confirm gold mineralization, with results including 82 metres grading 1.02 grams gold from 20 metres depth in hole 12-001, and 56.4 metres averaging 1.28 grams gold from 18 metres depth in hole 12-002. Comstock is finishing an eight-hole program over 1,300 metres, testing strong gold enrichment discovered during trenching at its VG zone.

 

TSX-V most active issues

    Volume Week
    (000s) High Low Close Change
Sandstorm Mt&E SND 15438 0.51 0.43 0.48 + 0.02
GoldQuest Mng GQC 12619 1.46 0.84 1.01 0.4
Aurcana Corp AUN 6810 1.17 1.07 1.09 0.07
Hana Mng HMG 5833 0.45 0.39 0.42 0.02
Nighthawk Gold NHK 5283 0.22 0.14 0.15 0.04
Goldstrike Res GSR 5134 0.76 0.27 0.29 0.46
Nevada Sunrise NEV 4500 0.11 0.09 0.1 + 0.01
Groundstar Res GSA 3977 0.02 0.01 0.01 0.01
Apogee Silver APE 3563 0.1 0.09 0.09 0.02
Discovery Vent DVN 3444 0.27 0.21 0.26 + 0.03

TSX-V greatest percentage change

    Volume Week
    (000s) High Low Close Change
Solitaire Mnls SLT 100 0.01 0.01 0.01 + 100
Tintina Mines TTS 11 0.15 0.14 0.15 + 93.3
Baroyeca Go&Si BGS 650 0.03 0.02 0.03 + 66.6
Menika Mining MML 143 0.03 0.03 0.03 + 66.6
Sierra Madre D SMG 834 0.06 0.03 0.06 + 57.1
Intigold Mines IGD 447 0.35 0.22 0.31 + 55
Coronet Mtls CRF 1587 0.1 0.06 0.1 + 53.8
IEMR Res IRI 42 0.05 0.04 0.05 + 50
Dot Res DOT 88 0.05 0.04 0.05 + 50
Plato Gold PGC 438 0.02 0.01 0.02 + 50
Groundstar Res GSA 3977 0.02 0.01 0.01 66.6
Goldstrike Res GSR 5134 0.76 0.27 0.29 61.4
Black Bull Res BBS 10 0.01 0.01 0.01 50
Stratabd Mnr SB 125 0.1 0.06 0.07 45.8
Canadn Plat CPC 38 0.08 0.05 0.05 43.7
Stakeholdr Gld SRC 303 0.04 0.02 0.02 42.8
Solid Gold Res SLD 100 0.05 0.03 0.03 40
Midasco Cap MGC 130 0.03 0.02 0.02 40
Plains Ck Phos PCP 546 0.03 0.02 0.02 40
Secova Mtls SEK 160 0.03 0.02 0.02 40

 TSX-V greatest value change

    Week
    Change Close Change
Pac Booker Min BKM 302550 3.88 + 0.88
Inform Expl IX 17900 0.9 + 0.25
Ascot Res AOT 552861 1.39 + 0.25
Eurasian Minls EMX 497073 2.44 + 0.19
Galway Res GWY 2536612 1.22 + 0.19
Gold Reach Res GRV 143347 1.7 + 0.15
Foran Mng FOM 142400 0.69 + 0.13
Giyani Gold WDG 390332 1.24 + 0.12
Intigold Mines IGD 447383 0.31 + 0.11
Alhambra Res ALH 151557 0.32 + 0.1
Sandstorm Gld SSL 2608216 13.31 1.04
Chesapeake Gld CKG 45301 8.55 0.85
Lumina Copper LCC 398354 9 0.57
Goldstrike Res GSR 5134112 0.29 0.46
GoldQuest Mng GQC 12618747 1.01 0.4
Reservoir Mnls RMC 414413 2.92 0.33
Kaminak Gold KAM 599034 1.97 0.32
Santacruz Silv SCZ 591064 2.17 0.28
Gold Reserve GRZ 26034 3.24 0.24
Comstock Mtls CSL 2365514 0.34 0.21

U.S. Markets

U.S. markets retreated despite data showing that Americans are the most upbeat they have been in five years. The approaching U.S. election, worries about Europe and slowing Chinese growth and corporate earnings all put a damper on U.S. equities. The S&P 500 Index posted its biggest weekly percentage drop since June, falling 2.21%, or 32.34 points, to 1,428.59, while the Dow Jones Industrial Average fell 2.10%, or 281.30 points, to 13,328.85. The Philadelphia Gold and Silver Index lost 3.46%, or 6.63 points, to 184.90 points.

Long-suffering U.S.-based thermal coal producers caught a break last week when natural gas prices moved higher due to lower-than-expected inventory building. Consol Energy topped the list of value gains surging 12%, or US$3.79, to US$35.14 per share; Peabody Energy climbed 14.8%, or US$3.33, to US$25.71; Alpha Natural Resources finished US$1.30, or 19.7% higher, at US$7.88; and Arch Coal advanced US$1.02 to US$7.62, or 15.4%.

Cliffs Natural Resources rose US$2.14 to US$40.50 on news it had reached a tentative agreement with the United Steelworkers on a new three-year labour contract offer that would cover 2,400 workers at the company’s Empire and Tilden mines in Michigan, and its United Taconite and Hibbing Taconite mines in Minnesota.

Keegan Resources surged 14.4% to US$3.72 per share on the back of an updated resource estimate for its 90%-owned Esaase gold project in Ghana, and confirmation that the company plans mining the deposit at lower rates and higher grades to cut costs.

Patriot Gold jumped 13.8% to 23¢ on news that it will begin a resource-definition drill program to expand the parameters of a potential starter pit at its Moss gold-silver project in Arizona, and positive assay results from its Bruner gold project in Nevada, where drill hole 127C returned 52.4 metres averaging 2.21 grams gold per tonne.

Compass Minerals was up 72¢ to US$76.62 — still riding high from news the previous week that it had purchased the mining rights to about 100 million tons of salt reserves in the Chile’s Atacama desert for US$6.5 million.

U.S. most active issues

    Volume Week
    (000s) High Low Close Change
Alpha Nat Res* ANR 155979 8.56 6.45 7.88 + 1.3
Alcoa* AA 124636 9.25 8.66 8.69 0.4
Arch Coal* ACI 88928 8 6.42 7.62 + 1.02
Freeport McMo* FCX 66377 41.57 39.82 40.14 0.06
Peabody Enrgy* BTU 57566 26.22 22.04 25.71 + 3.33
Cliffs Nat Rs* CLF 41876 43.25 38.2 40.5 + 2.14
Kinross Gold* KGC 36580 10.85 10.14 10.18 0.66
Stillwater Mg* SWC 28439 12.33 10.14 10.22 2.1
Barrick Gold* ABX 28293 41.7 38.89 39.02 2.98
Vale* VALE 23539 18.67 17.54 18.2 + 0.49

U.S. greatest percentage change

    Volume Week
    (000s) High Low Close Change
Silver Dragon* SDRG 602 0.01 0 0.01 + 400
Alpha Nat Res* ANR 155979 8.56 6.45 7.88 + 19.7
Pac Booker Mn* PBM 59 4.9 3 3.91 + 18.4
Arch Coal* ACI 88928 8 6.42 7.62 + 15.4
Peabody Enrgy* BTU 57566 26.22 22.04 25.71 + 14.8
Strata O&G* SOIGF 60 0.14 0.1 0.12 + 14.5
Keegan Res* KGN 310 3.86 3.11 3.72 + 14.4
Patriot Gold* PGOL 150 0.24 0.21 0.23 + 13.8
Santa Fe Gold* SFEG 1115 0.41 0.3 0.38 + 13.4
Consol Energy* CNX 21261 35.69 31.03 35.14 + 12
El Capitan Pr* ECPN 2380 0.38 0.26 0.3 20
Cornerstone C* CTNXF 13 0.07 0.07 0.07 19.5
Minco Gold* MGH 245 0.74 0.56 0.58 18.3
NovaCopper* NCQ 795 2.24 1.85 1.85 17.7
Gold Am Mng* SILA 224 0.03 0.02 0.02 17.2
Stillwater Mg* SWC 28439 12.33 10.14 10.22 17
Exeter Res* XRA 248 1.6 1.37 1.37 14.3
Lake Shore Gd* LSG 1105 1 0.85 0.87 12.5
Mines Managem* MGN 188 1.46 1.28 1.29 12.2
China Shen Zh* SHZ 153 0.32 0.27 0.27 11.9

U.S. greatest value change

    Week
    Change Close Change
Consol Energy* CNX 21260613 35.14 + 3.79
Walter Energy* WLT 4789775 35.54 + 3.39
Peabody Enrgy* BTU 57566376 25.71 + 3.33
Cliffs Nat Rs* CLF 41875816 40.5 + 2.14
Alliance Rs P* ARLP 384365 63.33 + 1.95
Alpha Nat Res* ANR 1.56E+08 7.88 + 1.3
Arch Coal* ACI 88927604 7.62 + 1.02
AngloGold Ash* AU 9556543 34.28 + 0.91
Rio Tinto* RIO 2065119 48.69 + 0.87
Compass Mnls* CMP 291303 76.62 + 0.72
Royal Gold* RGLD 6449177 88.6 9.72
Randgold Res* GOLD 1912522 121.22 3.49
Barrick Gold* ABX 28292570 39.02 2.98
Goldcorp* GG 18848436 43.47 2.71
Franco-Nevada* FNV 1498148 58.43 2.37
Stillwater Mg* SWC 28439014 10.22 2.1
Agnico-Eagle* AEM 5249982 51.5 2.07
OM Group* OMG 603326 17.76 1.29
Silver Wheatn* SLW 16912764 38.87 1.17
Silver Std Re* SSRI 2924008 14.51 1.14

 

 

 

 

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