Market news

Toronto Stock Exchange

The S&P/TSX Composite Index was down 342 points to 11,877.72 points during the period, as investors focused on tough global issues.

The period began with surprise news for some that the eurozone was officially in a recession, although the looming fiscal cliff in the U.S. — which could result in a recession south of the border — and more signs of slower growth in China did not put investors in a buying mood. 

The selling sentiment carried over to commodities, as both gold and oil prices were off. The price for the yellow metal fell US$17 to US$1,714.70 per oz., and the S&P/TSX Global Gold Index was down 27 points to 307.99. The S&P/TSX Capped Diversified Metals & Mining Index was down 45 points to 909.48 points, with the copper price flat at US$3.45 per lb. 

On the positive side, the period got rolling with mergers and acquisitions activity as Osisko Mining pitched a friendly, all-share deal to acquire Queenston Mining and its Upper Beaver project, along with four potential satellite deposits in Ontario’s Kirkland Lake region. The deal values Queenston at $550 million, or a 45% premium, to Queenston’s 30-day, volume-weighted average price for the period ended Nov. 9. Queenston shares were up 20¢ to $2.75 for the period, while Osisko shares fell $1.35 to $8.47 per share. 

Investors showed confidence that an upcoming referendum would break the way for Gabriel Resources. The company, which is trying to get the large Rosia Montana gold project in Romania into production, saw its shares rise by 19% to finish up at $2.75. The gain followed Gabriel’s statement that the referendum on Dec. 9 would likely determine the project’s fate. 

On the downside, weak third-quarter results sent Iamgold shares down, as the gold miner’s shares fell $3.65 to finish at $11.75. Iamgold had lower profits due to lower gold production and sales. Earnings per share came in at US21¢ a share, below the consensus of US24¢ per share and last year’s US30¢. Sales were off 13% from last year to 188,000 oz., as production fell at its jointly held operations with AngloGold Ashanti in Mali. The company blamed lower grades and processing issues for the decline in production. 

Shares of Nautilus Minerals fell 48% to 40¢ after the company said it would halt construction at its sea floor production system and fire 60 workers to preserve its cash position. The company says it can no longer afford to finance development at its Solwara 1 project in Papua New Guinea. Nautilus is fighting with the government of Papua New Guinea over shared development costs. Nautilus says the government is obliged to pay $23.5 million for costs incurred in the development of the Solwara 1 up to January 2011, and to make pro-rata capital contributions, which total another $51.5 million.

TSX most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
Eastern Platin	ELR	19906	0.17	0.12	0.13	–	0.04
Uranium One	UUU	16249	2.08	1.8	1.82	–	0.23
Kinross Gold	K	15970	10.32	9.23	9.51	–	0.81
Yamana Gold	YRI	13960	20.3	17.99	18.63	–	1.51
Osisko Mng	OSK	13511	9.42	8.29	8.47	–	1.35
Talison Lithm	TLH	13421	7.1	6.69	7.05	+	0.6
Eldorado Gold	ELD	13075	15	13.83	14.12	–	0.8
B2Gold	BTO	11508	3.94	3.4	3.53	–	0.39
Barrick Gold	ABX	11079	36.32	32.91	33.77	–	2.32
Goldcorp	G	10674	44.43	39.27	39.72	–	4.52

TSX greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Thundermin Res	THR	348	0.07	0.05	0.06	+	33.3
Black Iron	BKI	481	0.25	0.19	0.22	+	29.4
Liberty Silver	LSL	207	0.82	0.53	0.74	+	21.3
Gabriel Res	GBU	2075	2.94	2.34	2.75	+	18.5
Pac NW Cap	PFN	104	0.07	0.06	0.07	+	18.1
Horizns G Bear	HGD	1594	10.61	8.74	10.25	+	17.1
Stonegate Agri	ST	980	0.42	0.32	0.39	+	16.6
Emed Mining	EMD	1327	0.19	0.17	0.19	+	15.6
Minera IRL	IRL	469	0.96	0.8	0.96	+	15.6
Avnel Gold	AVK	161	0.39	0.33	0.39	+	14.9
Nautilus Minls	NUS	5506	0.77	0.34	0.4	–	47.6
Hard Creek Ni	HNC	685	0.07	0.05	0.05	–	35.7
Stockport Expl	SPT	73	0.12	0.09	0.09	–	34.6
Labdr Iron Mns	LIM	2829	0.89	0.62	0.62	–	29.5
Jaguar Mng	JAG	1177	1.03	0.69	0.74	–	28.1
Serabi Gold	SBI	180	0.09	0.07	0.08	–	27.2
Cobriza Mtls	CZA	1165	0.08	0.05	0.06	–	26.6
CaNickel Mng	CML	40	0.29	0.17	0.17	–	26
IAMGold Corp	IMG	8794	15.5	11.17	11.75	–	23.7
Eastern Platin	ELR	19906	0.17	0.12	0.13	–	23.5

TSX greatest value change

		Week
		Change	Close	Change
Agrium	AGU	2077945	97.81	+	1.74
Horizns G Bear	HGD	1593767	10.25	+	1.5
Talison Lithm	TLH	13421247	7.05	+	0.6
Gabriel Res	GBU	2075260	2.75	+	0.43
Queenston Mng	QMI	8427924	5.21	+	0.2
Mountain Prov	MPV	598758	3.75	+	0.2
Duluth Metals	DM	357481	2.47	+	0.15
Minera IRL	IRL	469007	0.96	+	0.13
Liberty Silver	LSL	206575	0.74	+	0.13
Belo Sun Mng	BSX	3746888	1.62	+	0.12
Royal Gold	RGL	27684	80.95	–	7.44
Walter Energy	WLT	10243	28.6	–	5.06
Goldcorp	G	10673801	39.72	–	4.52
Silver Wheaton	SLW	7717631	36.17	–	4.27
IAMGold Corp	IMG	8794472	11.75	–	3.65
Agnico-Eagle	AEM	3228306	52.19	–	3.48
Allied Nevada	ANV	725236	32.06	–	3.43
Franco-Nevada	FNV	1856254	56.36	–	2.84
Newmont Mng	NMC	18426	46.67	–	2.69
Seabridge Gold	SEA	82051	14.49	–	2.59

TSX Venture Exchange

The S&P/TSX Venture Composite Index declined in tandem with broader market sentiment during the trading sessions, falling 5%, or 65 points, before closing at 1,235.34.

Markets view the fiscal cliff situation in the U.S. with skepticism, and further struggles in the European Union and a stumble in China’s recovery compounded bearishness.

Global concerns took a toll on natural resources, with gold prices declining US$17 en route to a US$1,714.70 per oz. close, while December contracts on the New York Mercantile Exchange for benchmark oil fell US4¢ to US$85.41 per barrel on Nov. 16.

Ascot Resources got a boost from drill results from its historic Premier gold-silver property north of Stewart, B.C. Ascot led the value-added category during the week by jumping 14¢ to a $1.31 close. The company’s 2012 drill campaign focused on its Big Missouri, Martha Ellen and Sparky zones. On Nov. 14, Ascot announced it cut one metre of 126.5 grams gold per tonne and 622 grams silver per tonne in hole 12-426, which was collared on the Calcite Cut zone in the Big Missouri area. Other highlights from the program include 35 metres grading 2.11 grams gold in hole 12-430 and 24 metres of 2.04 grams gold in hole 12-426. Ascot’s drilling has extended over 5.5 km, and the company is reporting good continuity.

Kaminak Gold saw its shares fall 35¢ during the week after releasing drill results from a 2012 program at the Coffee gold project in the Yukon’s White Gold district. The company closed at $1.41 per share. On Nov. 14, Kaminak announced it had concluded a 69,000-metre drill program and received final assays for a maiden resource estimate due next quarter. The company extended its oxidized gold zone at Coffee’s Supremo T5 target by 200 metres north along strike, with highlights including 58 metres grading 1.72 grams gold from 36 metres depth in hole 342, 23 metres averaging 3.63 grams gold from 61 metres depth in hole 339 and 14 metres of 4.96 grams gold from 44 metres depth in hole 341.

On the financing side, B.C.-based Diamcor Mining announced it raised an additional $4 million from its partner, luxury diamond retailer Tiffany & Co. The financing includes a $2.4-million term loan and a $1.6-million convertible debt debenture. In March 2011, Tiffany & Co. agreed to an alliance wherein it would have a first right of refusal to buy 100% of future production from Diamcor’s Krone-Endora at Venet
ia project in Limpopo, South Africa. Diamcor picked up Krone-Endora from De Beers in February 2011, and the junior is commissioning and expanding its project in a bid to pursue near-term production.

TSX-V most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
Aurcana Corp	AUN	9327	1.15	0.95	0.99	–	0.11
Fission Energy	FIS	7509	0.63	0.48	0.5	–	0.02
Andina Mnls	ADM	5654	0.78	0.77	0.78		0
Woulfe Mng	WOF	5264	0.32	0.28	0.31	–	0.01
Sandstorm Mt&E	SND	5208	0.55	0.45	0.49	–	0.04
Sandstorm Gld	SSL	4897	14.75	10.68	11.24	–	3.06
TNR Gold	TNR	4838	0.16	0.09	0.09	–	0.04
Hana Mng	HMG	4752	0.8	0.77	0.78	–	0.01
Bellhaven Cp&G	BHV	4279	0.2	0.14	0.17	–	0.03
Northern Tiger	NTR	4147	0.07	0.04	0.05	–	0.02

TSX-V greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Bell Copper	BCU	50	0.01	0.01	0.01	+	100
Alpha Gold	ALQ	620	0.04	0.02	0.03	+	100
Northcore Res	NCR	1114	0.01	0.01	0.01	+	100
Auramex Res	AUX	143	0.12	0.03	0.09	+	80
Chilean Gold	CHN	16	0.15	0.1	0.15	+	76.4
Northern Abiti	NAI	767	0.03	0.02	0.03	+	66.6
New Destiny Mg	NED	108	0.1	0.06	0.1	+	66.6
Upper Can Gold	UCC	188	0.16	0.1	0.16	+	60
Midlands Minls	MEX	908	0.02	0.01	0.02	+	50
Cornerstone Ca	CGP	1954	0.07	0.04	0.06	+	50
Goldspike Expl	GSE	22	0.14	0.06	0.06	–	60
Goldbank Mng	GLB	18	0.05	0.05	0.05	–	52.6
Satori Res	BUD	835	0.04	0.03	0.03	–	50
Monster Mng	MAN	752	0.07	0.04	0.04	–	50
Atocha Res	ATT	2459	0.02	0.01	0.01	–	50
Arcturus Res	AZN	200	0.01	0.01	0.01	–	50
Rainmaker Mng	RMG	22	0.1	0.08	0.08	–	46.6
Zena Mng	ZCC	54	0.24	0.2	0.2	–	42.8
Western Melv M	WMM	75	0.31	0.2	0.2	–	41.1
Canasia Indust	CAJ	2797	0.03	0.02	0.02	–	40

TSX-V greatest value change

		Week
		Change	Close	Change
Ascot Res	AOT	261235	1.31	+	0.14
Nordex	NXX	389600	0.68	+	0.13
Argex Silver C	RGX	2230457	1.2	+	0.1
Northquest	NQ	587450	0.81	+	0.1
Diamcor Mng	DMI	65952	1.27	+	0.08
WCB Res	WCB	390000	0.6	+	0.08
Archon Mineral	ACS	10500	0.72	+	0.07
Chilean Gold	CHN	15600	0.15	+	0.07
Intl Enexco	IEC	107000	0.52	+	0.06
CB Gold	CBJ	2153424	1.01	+	0.06
Sandstorm Gld	SSL	4897427	11.24	–	3.06
Lumina Copper	LCC	163052	9.08	–	0.67
Atac Res	ATC	1876024	1.87	–	0.44
Maudore Minls	MAO	40980	2.26	–	0.44
Midway Gold	MDW	119636	1.26	–	0.43
Kaminak Gold	KAM	1422015	1.42	–	0.35
Cayden Res	CYD	206770	1.3	–	0.32
Reservoir Mnls	RMC	722278	2.62	–	0.31
Athabasca Mnls	ABM	1091922	1.89	–	0.3
Newstrike Cap	NES	530698	2	–	0.3

U.S. markets

Mounting concern about Washington’s ability to avoid the fiscal cliff drove markets lower. The Dow Jones Industrial Average fell 1.8%, or 227.08 points, to end the week at 12,588.31, while the S&P 500 Index dropped 1.5%, or 19.97 points, to 1,359.88. The Philadelphia Gold and Silver Index was down 8.5%, or 15.44 points, at 165.67.

Stocks in positive territory included Harry Winston Diamond, which announced it would pay $500 million in cash for BHP Billiton’s diamond division, which consists mainly of its 80% stake in the Ekati mine in the Northwest Territories. Harry Winston also owns 40% of the nearby Diavik diamond mine. Harry Winston shares ended the week up 13¢ at US$13.45. 

Quaterra Resources rose 13.8%, or 5¢, to US42¢ per share after discovering a new silver zone at its Nieves silver property in Mexico. Two kilometres west of its current resource, drill hole 190 intersected 0.8 metre of 1,865 grams silver per tonne, part of a larger vein interval starting at 243.6 metres averaging 341 grams silver. Holes 191 and 192, drilled 200 metres west and east of 190, intersected 0.9 metre of 289 grams silver and 1.1 metres of 284 grams silver. The Nieves project is a joint-venture with Blackberry Ventures I.

Cornerstone Capital Resources jumped 38% higher to US7¢ per share on news that its mineral rights to the Cana Brava gold-silver concession in Ecuador had been restored after an appeal. The rights had been revoked in November 2008 because the concessions had been mistakenly placed on a list of ones whose owners allegedly had not filed their preliminary environmental impact statements by the time Ecuador’s 2008 Mining Mandate and moratorium was declared.

Strong operating cash flow in the third quarter sent shares of OM Group up US67¢ to US$19.23. The specialty chemicals group generated US$96 million of cash flow from operations, compared with US$22 million in last year’s third quarter. The figure was the highest in nearly four years and the second-highest in a decade. Diluted earnings per share from continuing operations were US18¢, compared with negative US$2.18 per share in the third quarter of 2011.

U.S. most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
Alpha Nat Res*	ANR	72229	8.16	6.88	7.1	–	0.9
Alcoa*	AA	71407	8.48	7.98	8.18	–	0.25
Freeport McMo*	FCX	65587	39.1	36.36	36.79	–	1.56
Arch Coal*	ACI	56568	7.52	6.2	6.59	–	0.77
Kinross Gold*	KGC	46510	10.32	9.2	9.51	–	0.81
Barrick Gold*	ABX	42057	36.35	32.87	33.72	–	2.35
Molycorp*	MCP	41274	7.33	5.75	6.13	–	1.37
Peabody Enrgy*	BTU	31114	26.83	24.17	25	–	1.17
Newmont Mng*	NEM	30361	48.32	44.5	46.12	–	1.95
Silver Wheatn*	SLW	27402	40.64	34.78	36.12	–	4.27

U.S. greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Cornerstone C*	CTNXF	183	0.07	0.04	0.07	+	38.3
Quaterra Res*	QMM	101	0.45	0.35	0.42	+	13.8
China Shen Zh*	SHZ	240	0.28	0.19	0.24	+	13.2
Patriot Gold*	PGOL	137	0.28	0.17	0.24	+	9
Mountain Prov*	MDM	63	3.81	3.42	3.73	+	4.4
Strata O&G*	SOIGF	124	0.14	0.11	0.14	+	3.8
OM Group*	OMG	1753	20.29	18.56	19.23	+	3.6
Caledonia Mng*	CALVF	3291	0.12	0.1	0.11	+	2.8
Stillwater Mg*	SWC	9470	10.95	10.35	10.7	+	1.8
Agrium*	AGU	786	97.76	95.31	97.58	+	1.6
Lake Vict Mng*	LVCA	73	0.05	0.02	0.04	–	38.4
Gold Am Mng*	SILA	380	0.02	0.01	0.01	–	33.3
Midway Gold*	MDW	404	1.68	1.25	1.26	–	25.4
McEwen Mng*	MUX	15209	4.45	3.3	3.46	–	21.9
Banro Res*	BAA	1424	4.49	3.45	3.48	–	21.6
Exeter Res*	XRA	251	1.58	1.26	1.26	–	21.2
Tasman Mtls*	TAS	767	1.35	0.96	1.06	–	20.3
Rare Elemt Re*	REE	2177	3.9	3.03	3.16	–	20
Molycorp*	MCP	41274	7.33	5.75	6.13	–	18.2
Avalon Rare M*	AVL	1486	1.55	1.2	1.23	–	18

U.S. greatest value change

		Week
		Change	Close	Change
Agrium*	AGU	786086	97.58	+	1.54
OM Group*	OMG	1753055	19.23	+	0.67
Soc Quim&M Ch*	SQM	1318297	58.03	+	0.38
Stillwater Mg*	SWC	9469953	10.7	+	0.19
Mountain Prov*	MDM	63270	3.73	+	0.16
Harry Winston*	HWD	792195	13.45	+	0.13
Quaterra Res*	QMM	100607	0.42	+	0.05
North Am En P*	NOA	33907	3.06	+	0.04
China Shen Zh*	SHZ	239914	0.24	+	0.03
Patriot Gold*	PGOL	137058	0.24	+	0.02
Randgold Res*	GOLD	3251957	101.77	–	10.57
Royal Gold*	RGLD	5072717	80.95	–	7.17
Goldcorp*	GG	26450264	39.67	–	4.46
Silver Wheatn*	SLW	27401853	36.12	–	4.27
Walter Energy*	WLT	3528083	29.02	–	4.08
Allied Nevada*	ANV	858371	32	–	3.6
Agnico-Eagle*	AEM	8833923	52.14	–	3.48
Compass Mnls*	CMP	305566	74.77	–	3.39
Franco-Nevada*	FNV	1289686	56.25	–	2.94
AngloGold Ash*	AU	8189948	30.73	–	2.66