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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