Market news

Toronto Stock Exchange

Toronto’s resource-heavy index reflected a lacklustre week for traders, as upbeat economic data from the U.S. failed to propel the markets.

The S&P/TSX Composite Index lost nearly a percent, or 115.7 points, to end at 12,300.30. The U.S. government reported the country’s economy is expanding at a rate of 2% annually, up from 1.3% in the second quarter. While the growth is better than expected, concerns remain that it may do little to lower the unemployment rate.

During the week, the S&P/TSX Global Gold Index slipped nearly 2 points to 336.4, as the spot price of gold fell US$9.40 per oz. to US$1,711.10. The S&P/TSX Capped Diversified Metals & Mining Index dropped 13.1 points to 921.64. 

Agnico-Eagle Mines was one of the few gold miners to shine. It topped the week’s largest value-gainer list, advancing $3.12 per share to $55.53 after posting record quarterly earnings of US$106.3 million, or 62¢ per share, up from a net loss of US$81.6 million, or negative 48¢ per share a year ago.

It produced 286,971 payable oz. gold at a cash cost of US$556 per oz., helped by strong performances at its Meadowbank and Kittila gold mines in Nunavut and Finland. As a result, Agnico has lifted its 2012 production guidance to 1.02 million oz. gold, up from 975,000 oz. gold.

Global base-metal miner Inmet Mining added $1.46 to end at $50.45 apiece after sweetening a $112-million bid for its Panamanian neighbour Petaquilla Minerals by 25%, after the junior rejected the initial offer tabled in early September. Inmet, which is developing the Cobre Panama project in Panama, had set a deadline of Nov. 5 to complete the deal. But on Oct. 29, Petaquilla’s board unanimously rejected the revised hostile offer, saying it doesn’t reflect the company’s current value or growth prospects, virtually erasing the gains Inmet made in the previous week.

Mexico-focused Torex Gold was the period’s most actively traded stock, with 19.3 million shares changing hands, closing up 6¢ at $2 per share after completing the previously announced bought-deal financing. A total of 190 million units were issued at $2 apiece for proceeds of $380 million, which included a partial exercise of the over-allotment option for 15 million units. Each unit comprises a share and a quarter warrant, where a full warrant allows a holder to buy a Torex share at $2.65 until Oct. 23, 2013. The company will use the proceeds to develop its Morelos gold project in Mexico. 

Canada’s second-largest gold producer, Goldcorp, saw heavy trading after posting a record quarterly revenue of US$1.5 billion, and adjusted earnings of US$440 million, or 54¢ share, up from a consensus of 46¢ a share. Goldcorp gained 68¢ to finish at $43.73 on 15.8 million shares traded.

TSX most active issues

    Volume Week
    (000s) High Low Close Change
Torex Gold TXG 19277 2.05 1.9 2 + 0.06
Goldcorp G 15831 44.14 40.78 43.73 + 0.68
First Nickel FNI 15398 0.09 0.05 0.08 + 0.02
Lundin Mng LUN 15324 5.54 5.15 5.21 0.15
B2Gold BTO 14923 4.16 3.77 4.14 + 0.24
Barrick Gold ABX 14864 39.5 38.02 39.12 + 0.57
Kinross Gold K 13063 10.2 9.57 9.62 0.43
Teck Res B TCKB 12732 32.05 30.17 31.04 0.41
Eldorado Gold ELD 10291 14.44 13.75 13.91 0.35
Petaquilla Mnl PTQ 8670 0.63 0.56 0.62 + 0.03


TSX greatest percentage change

    Volume Week
    (000s) High Low Close Change
Redzone Res REZ 146 0.17 0.12 0.17 + 43.4
Cline Mng CMK 4657 0.24 0.17 0.23 + 35.2
Liberty Silver LSL 1658 1.33 0.49 1.31 + 35
Peregrine Diam PGD 1143 0.5 0.35 0.49 + 31
Eco Oro Mnls EOM 1819 1.38 1.1 1.31 + 29.7
Mega Uranium MGA 4426 0.2 0.14 0.16 + 28
First Nickel FNI 15398 0.09 0.05 0.08 + 25
Cobriza Mtls CZA 88 0.1 0.08 0.1 + 25
Polar Star Mng PSR 197 0.17 0.15 0.17 + 21.4
Lipari Energy LIP 74 0.25 0.21 0.25 + 19
Malaga MLG 4303 0.07 0.04 0.05 40
Velocity Minls VLC 125 0.05 0.01 0.03 33.3
Mariana Res MRY 24 0.1 0.09 0.09 29.1
Black Iron BKI 253 0.23 0.16 0.16 20
Inspiration Mg ISM 112 0.1 0.1 0.1 16.6
Northcliff Res NCF 96 0.38 0.34 0.35 16.6
Formation Mtls FCO 1065 0.29 0.23 0.24 15.7
Curis Res CUV 124 0.79 0.6 0.65 15.5
Olympus Pacif OYM 656 0.19 0.17 0.17 15
Geovic Mng GMC 132 0.1 0.09 0.09 14.2


TSX greatest value change

    Week
    Change Close Change
Agnico-Eagle AEM 3522149 55.53 + 3.12
Inmet Mining IMN 1660153 50.45 + 1.46
Coeur d Alene CDM 90765 30.22 + 1.15
Alamos Gold AGI 1731620 19.56 + 1.08
Mag Silver MAG 695993 12.24 + 1.05
Detour Gold DGC 1916647 27.72 + 0.86
Harry Winston HW 805862 14.07 + 0.86
Goldcorp G 15831382 43.73 + 0.68
Russell Metals RUS 1207974 27.87 + 0.6
Argonaut Gold AR 3373731 10.43 + 0.57
Allied Nevada ANV 1179783 36.5 2.79
Walter Energy WLT 10789 35.85 2.51
Royal Gold RGL 24866 84.8 1.26
Tahoe Res THO 1215206 19.71 1.12
Newmont Mng NMC 15097 54.21 1.09
Seabridge Gold SEA 67144 16.98 0.87
Alacer Gold ASR 5774611 5.41 0.71
Centerra Gold CG 2764729 10.68 0.65
Kirkland Lk Gd KGI 1437019 9.13 0.64
Major Drilling MDI 1299830 10.15 0.6


TSX Venture Exchange

During the trading session, the S&P/TSX Venture Composite Index dropped 14.78 points, or 1.1%, before closing the week at 1,300.84 points.

Promising third-quarter growth figures from the U.S. were overshadowed by disappointment in earnings amongst major corporations like General Electric and 3M. The Canadian dollar finished down 0.41¢ at US100.2¢, while gold prices dropped US$9.40 per oz., en route to a US$1,711.10 weekly close. Oil prices rose slightly on the back of stronger growth in the U.S., with December crude contracts jumping 23¢ on the New York Mercantile Exchange before closing at US$86.28 per barrel.

On Oct. 24, Anfield Nickel announced results from a prefeasibility study on its Mayaniquel nickel project in northeastern Guatemala. The company’s shares subsequently leapt 50¢ during the week before closing at $3.80 per share.
Anfield’s study bumps average projected annual production to 36,500 tonnes nickel over the mine’s life by adding a second rotary-kiln furnace unit in the fifth year. The company notes that higher-grading nickel in its start-up pit would see head grades at 1.86% nickel over the first three years of operation.

According to the study, Mayaniquel will cost US$946 million in capital expenditures and carry a net present value of US$1.38 billion at an 8% discount rate with an internal rate of return of 19.9%, compared with an NPV of US$605 million and an IRR of 14.1% in a 2011 preliminary economic assessment. The company’s base case assumes a long-term nickel price of US$8.50 per lb., including an US18¢ per lb. contained iron credit. The project hosts total proven and probable reserves of 69.9 million tonnes grading 1.41% nickel.

Toronto-based Kennady Diamonds dropped 37¢, or 23%, en route to a $1.23 close. On Oct. 22, the company reported caustic fusion results for samples taken from its Faraday, Faraday South and Kelvin kimberlites at its Kennady North diamond project in the Northwest Territories. Combined samples weighed in at 394 kilograms and returned 89 macro diamonds and 1,800 micro diamonds. Macro-diamond weight averaged 0.76 carat. The company is planning to begin a 5,000-metre drill program at the site in March, and Kennady expects to have enough data for a maiden resource following its winter program. On Oct. 26, Kennady announced a US$3-million non-brokered private placement. The company issued $300,000 in flow-through shares at $1.45 per share, and $2.7 million in non-flow-through stock at a price of $1.15 per share. Proceeds are to fund upcoming drilling at Kennady North.

TSX-V most active issues

    Volume Week
    (000s) High Low Close Change
Galway Res GWY 15937 2.24 2.16 2.23 + 0.08
Hana Mng HMG 10438 0.82 0.45 0.79 + 0.34
Silver Spruce SSE 9663 0.04 0.02 0.02 0.03
Canaco Res CAN 7669 0.43 0.34 0.42 + 0.05
Aurcana Corp AUN 6701 1.06 1 1.04 + 0.01
Arcus Dev Grp ADG 6062 0.06 0.05 0.05 0.03
Sandstorm Mt&E SND 5731 0.49 0.45 0.49 + 0.03
Ditem Explor DIT 5302 0.03 0.02 0.03   0
GoldQuest Mng GQC 5210 0.95 0.77 0.87 + 0.01
Rockcliff Res RCR 4039 0.05 0.04 0.05 + 0.02
Malaga MLG 4303 0.07 0.04 0.05 40
Velocity Minls VLC 125 0.05 0.01 0.03 33.3
Mariana Res MRY 24 0.1 0.09 0.09 29.1
Black Iron BKI 253 0.23 0.16 0.16 20
Inspiration Mg ISM 112 0.1 0.1 0.1 16.6
Northcliff Res NCF 96 0.38 0.34 0.35 16.6
Formation Mtls FCO 1065 0.29 0.23 0.24 15.7
Curis Res CUV 124 0.79 0.6 0.65 15.5
Olympus Pacif OYM 656 0.19 0.17 0.17 15
Geovic Mng GMC 132 0.1 0.09 0.09 14.2


TSX-V greatest percentage change

    Volume Week
    (000s) High Low Close Change
Stakeholdr Gld SRC 609 0.06 0.03 0.06 + 140
La Quinta Res LAQ 139 0.01 0.01 0.01 + 100
Golconda Res GA 517 0.07 0.06 0.07 + 85.7
Tri Origin Exp TOE 456 0.1 0.05 0.1 + 81.8
Hana Mng HMG 10438 0.82 0.45 0.79 + 73.6
China Mnls Mng CMV 314 0.05 0.03 0.05 + 66.6
Rocmec Mining RMI 910 0.2 0.09 0.17 + 65
Bluestone Res BSR 177 0.29 0.14 0.29 + 61.1
REBgold RBG 14 0.13 0.1 0.12 + 60
Gold Port Res GPO 413 0.06 0.04 0.06 + 57.1
Stone Res SRH 537 0.01 0.01 0.01 66.6
Silver Spruce SSE 9663 0.04 0.02 0.02 55.5
Sheltered Oak OAK 31 0.01 0.01 0.01 50
Shear Diamonds SRM 2737 0.07 0.04 0.04 50
Cascade Res CC 30 0.01 0.01 0.01 50
Santa Fe Metls SFM 722 0.02 0.01 0.01 50
Duncan Park H DPH 481 0.04 0.02 0.02 50
Q-Gold Res QGR 78 0.15 0.08 0.08 50
Granite Ck Gld GCX 11 0.03 0.02 0.03 50
Laurentian Glf LGF 1203 0.03 0.02 0.02 42.8


TSX-V greatest value change

    Week
    Change Close Change
Anfield Nickel ANF 184151 3.8 + 0.5
Hana Mng HMG 10437990 0.79 + 0.34
Athabasca Mnls ABM 1532090 1.85 + 0.3
Chesapeake Gld CKG 41767 9.44 + 0.24
Orko Silver OK 955348 1.59 + 0.21
Sandstorm Gld SSL 1356450 13.66 + 0.18
Santacruz Silv SCZ 770750 2.35 + 0.16
Reservoir Mnls RMC 738351 3.21 + 0.16
American Vanad AVC 579715 0.98 + 0.14
Giyani Gold WDG 627965 1.27 + 0.14
Kennady Diam KDI 162586 1.23 0.37
Pac Booker Min BKM 66914 3.62 0.33
Atacama Pac Gd ATM 420220 3.35 0.2
Gold Reach Res GRV 148635 1.3 0.19
Energold Drill EGD 104993 3.64 0.18
Ascot Res AOT 291311 1.11 0.17
EurOmax Res EOX 141239 1.05 0.17
Dia Bras Expl DIB 32562 2.75 0.15
New Oroperu Rs ORO 46300 0.46 0.15
Georgetown Cap GET 20000 0.32 0.13


U.S. markets

Gross domestic product growth in the U.S. increased at a 2% annual rate in the third quarter, up from 1.3% in the second quarter. But earnings disappointments from U.S. multinationals, including Apple, worries about slowing global growth and uncertainty over the Nov. 6 presidential election ramped up risk aversion. The Dow Jones Industrial Average dropped 1.77%, or 236.30 points, to end the week at 13,107.21, while the S&P 500 Index fell 1.48%, or 21.25 points, to 1,411.94. The Philadelphia Gold and Silver Index lost 1.66%, to close at 182.72.

Cost-cutting measures at Arch Coal helped the company post better-than-expected earnings in the third quarter. Net income reached US$45.8 million, or US22¢ a share from July to September, up from US$8.9 million, or US4¢ per share in the year-earlier quarter. Revenue fell 9% to US$1.09 billion. The coal producer forecasts capital spending of about US$350 million in 2013, below its 2012 estimate of between US$410 million and US$430 million. Arch was the most actively traded stock of the week, and its shares rose US18¢ to close at US$8.09.

Peabody Energy climbed 9%, or US$2.33, to US$28.22 per share, after the coal miner reported that expanded margins in the U.S., record volumes and aggressive cost-control measures helped offset price declines in Australia in the third quarter. Peabody’s results for the quarter ended beat Wall Street expectations. The company posted a profit of US$122.9 million, or US46¢ per diluted share, compared with US$291.2 million, or US$1.04 per share, in the third quarter of 2011. Revenues rose to US$2.06 billion from US$1.98 billion in the year-earlier quarter. In other news, Reuters reported that the company expects to resume talks with the Mongolian government over acquiring a stake in the western Tsankhi block of Tavan Tolgoi early next year.

Shares of Cliffs Natural Resources plunged 17.9%, or US$7.96 a share, to finish the week at US$36.49 after the company posted a huge drop in profits on lower iron ore prices and higher costs. Third-quarter profit fell 85% to US$85.1 million, or US59¢ a share, compared with US$601.2 million, or US$4.15 a share, in the year-earlier quarter.

U.S. most active issues

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    Volume Week
    (000s) High Low Close Change
Arch Coal* ACI 136692 8.86 7.13 8.09 + 0.18
Alpha Nat Res* ANR 120795 9.67 8.28 8.71 0.26
Alcoa* AA 85673 9.15 8.63 8.65 0.36
Freeport McMo* FCX 78116 41.2 38.66 39.07 2.11
Peabody Enrgy* BTU 74155 29.71 27.2 28.22 + 2.33
Cliffs Nat Rs* CLF 46329 45.82 36.02 36.49 7.96
Kinross Gold* KGC 34777 10.26 9.59 9.64 0.46
Barrick Gold* ABX 31808 39.68 39.18 + 0.4
Hecla Mining* HL 27015 6.67 6.28 6.47 0.04
Goldcorp* GG 24892 44.25 41 43.74 + 0.45


U.S. greatest percentage change

    Volume Week
    (000s) High Low Close Change
Strata O&G* SOIGF 275 0.15 0.11 0.14 + 32
Uranerz Energ* URZ 1913 1.72 1.5 1.67 + 9.8
Peabody Enrgy* BTU 74155 29.71 27.2 28.22 + 9
Mag Silver* MVG 99 12.31 11.24 12.26 + 8.4
Fortuna Silvr* FSM 732 5.21 4.78 5.11 + 6.4
OM Group* OMG 1767 21.39 19.45 20.76 + 6.2
Harry Winston* HWD 669 14.35 13 14.11 + 5.8
Agnico-Eagle* AEM 8170 56.75 51.6 55.63 + 5.6
Crosshair Eny* CXZ 179 0.15 0.12 0.15 + 4.9
Revett Mnls* RVM 172 3.68 3.3 3.6 + 4.9
Gold Am Mng* SILA 276 0.02 0.02 0.02 32
Grandview Gld* GVGDF 22 0.01 0.01 0.01 28.5
El Capitan Pr* ECPN 1362 0.4 0.3 0.31 22.2
Cliffs Nat Rs* CLF 46329 45.82 36.02 36.49 17.9
Mines Managem* MGN 376 1.38 1.12 1.18 11.2
Yanzhou Coal* YZC 1429 16.6 14.16 14.32 10.7
NovaCopper* NCQ 845 2.6 2.23 2.3 9.8
Dejour Enterp* DEJ 143 0.24 0.2 0.21 9.4
Mechel* MTL 2889 7.23 6.39 6.41 8.1
Santa Fe Gold* SFEG 637 0.34 0.28 0.28 8.2


U.S. greatest value change

    Week
    Change Close Change
Agnico-Eagle* AEM 8169622 55.63 + 2.96
Peabody Enrgy* BTU 74154850 28.22 + 2.33
Alliance Rs P* ARLP 378990 64.94 + 1.72
OM Group* OMG 1767061 20.76 + 1.22
Coeur d Alene* CDE 6957308 30.27 + 1.04
Mag Silver* MVG 98926 12.26 + 0.95
Harry Winston* HWD 668772 14.11 + 0.78
Cabot Corp* CBT 3069210 35.34 + 0.75
Pretium Res* PVG 604345 13.32 + 0.48
Goldcorp* GG 24892389 43.74 + 0.45
Cliffs Nat Rs* CLF 46329189 36.49 7.96
Allied Nevada* ANV 765496 36.64 2.81
Randgold Res* GOLD 2063001 117.98 2.57
Walter Energy* WLT 3895665 35.9 2.37
Freeport McMo* FCX 78115665 39.07 2.11
Mesabi Trust* MSB 715562 26.86 2.07
Yanzhou Coal* YZC 1429412 14.32 1.73
Royal Gold* RGLD 5549098 84.85 1.73
Newmont Mng* NEM 22761680 53.31 1.59
Mosaic* MOS 12490297 52.78 1.19
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