Toronto Stock Exchange
While the TSX Composite Index’s motion for the Jan. 23-27 period was relatively sideways (it managed to carve out a modest 33 point gain to 12,466.50 points) the fact that it didn’t gather downward moment in the face of some less than inspiring news should be taken as a positive.
The bad news came from both the U.S. and Europe with disappointing earnings numbers south of the border, a worse than expected U.S. Department of Commerce report on U.S. growth, and worries that negotiations between the Greek government and its creditors were breaking down.
With its resource heavy weighting, however, the TSX managed to push through negative headwinds, in part thanks to a stronger gold price. Word earlier in the period from the U.S. Fed that interest rates would stay at historic lows until 2014 had investors selling the greenback and buying the yellow metal, which was up US$67 to US$1,732.20 per oz., sending the Global Gold Index up 26 points to 392.65 points
The prices for aluminum, nickel, tin, lead and zinc were all higher as well and copper prices made a significant gain reaching US$3.90 per lb. Despite those strong prices the Capped Metals & Mining Index was relatively flat for the period at 1,219.16 points.
Pan American Silver is looking to regain the crown of “world’s largest primary silver producer” via the M&A route. The company tabled a friendly offer for Minefinders which sent Minefinders shares up 25% to $14.41. Unfortunately for Pan American its market cap fell on the news as its shares were off $1.92 to $23.10. The key motivation behind the deal is to acquire Minefinders’ Dolores mine in Mexico. Thanks to significant gold credits, the mine has negative silver cash costs, and the cash flows from the mine will help Pan American in its drive to build the large-scale Navidad silver mine in Argentina. The cash and share offer values Minefinders shares at $15.60 per share.
A move by Moneta Porcupine Mines to adopt a shareholder rights plan put the thought of takeover premiums into the minds of investors as the company’s shares rose 52% after the announcement to finish at 29¢. The company said that with the release of its gold resource in December and its low share price the measures were necessary to ward of opportunistic bids. Moneta’s Golden Highway project has indicated resources of 33.5 million tonnes grading 1.0 grams gold for 1.07 million oz. of gold and inferred resources of 47.8 million tonnes grading 1.35 grams gold for 2.07 million oz. of gold.
And Polaris Minerals announced it had closed a debt financing that will raise $15 million so that it can repay all existing debt. The company said it was essential to refinance so that it could repay a bridge loan maturing at the end of February and meet the repayment terms of its outstanding debt. The company’s shares were up 46% to 63¢.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Kinross GoldK4683011.9510.4711.67+1.31
Crocodile GoldCRK300230.600.580.58+0.03
Yamana GoldYRI2881417.8415.4917.39+1.82
Geologix ExGIX283340.340.250.31+0.04
B2GoldBTO274963.853.303.80+0.52
Lundin MngLUN185815.244.885.02-0.07
Potash Cp SaskPOT1852647.6944.2547.58+2.34
Barrick GoldABX1608749.9345.7449.46+2.94
GoldcorpG1581749.7344.2149.22+3.60
Eldorado GoldELD1566415.2213.2015.07+1.41
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Inspiration MgISM10360.200.120.20+81.8
Moneta PorcpnME62870.340.200.29+52.6
Polaris MinlsPLS3690.630.450.63+46.5
Rio Novo GoldRN8610.840.550.78+36.8
EMC MetalsEMC4090.160.130.15+36.3
Polar Star MngPSR4240.420.260.38+35.7
Crosshair EngyCXX6130.540.430.54+28.5
INV MetalsINV3360.240.200.24+26.3
MinefindersMFL1093814.6813.3414.41+25.3
Golden StarGSC11902.221.702.22+24.7
Mirabela NicklMNB38701.331.031.06-23.7
Stornoway DiamSWY22531.100.830.84-22.9
First UraniumFIU39160.290.190.21-19.2
Aura MnlsORA19261.391.121.14-17.9
Patagonia GoldPAT110.750.700.70-15.6
Horizns G BearHGD27379.467.777.83-14.6
Nevada CopperNCU11145.614.554.75-14.5
Peregrine DiamPGD3170.870.720.72-14.2
UEX CorpUEX26401.090.870.93-13.8
Copper Mtn MngCUM88086.265.235.30-13.4
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Royal GoldRGL3669375.41+6.98
Walter EnergyWLT2894671.40+4.10
Allied NevadaANV186000837.27+3.97
Inmet MiningIMN256466669.24+3.95
Silver WheatonSLW897168035.65+3.70
Agnico-EagleAEM356471939.24+3.69
GoldcorpG1581665049.22+3.60
Franco-NevadaFNV340626845.07+3.30
Barrick GoldABX1608650249.46+2.94
MinefindersMFL1093774014.41+2.91
Ivanhoe MinesIVN602863217.05-2.28
Pan Am SilverPAA856435223.10-1.92
Horizns G BearHGD27370587.83-1.34
Alacer GoldASR91530359.48-1.26
Labdr I-Ore RoLIF_U40901937.45-1.20
Copper Mtn MngCUM88084925.30-0.82
Nevada CopperNCU11135694.75-0.81
Russell MetalsRUS69863024.72-0.39
Mountain ProvMPV1135464.36-0.39
Midas GoldMAX14361814.40-0.35
TSX Venture Exchange
The S&P TSX Venture Composite Index saw a healthy gain of 57.58 points in the period, ending at 1,628.92. Volume was up significantly with an average of 132 million shares traded daily, helped no doubt by two major resource conferences taking place in Vancouver during the period.
Hudson River Minerals saw a major burst of activity with 18.7 million shares traded after reporting gold hits from its property near Wawa Ontario. Drill results including 12.7 metres grading 3.25 grams gold per tonne, 9.1 metres of 1.99 grams gold, and 7.5 metres of 1.93 grams gold. The results led the stock to nearly triple, jumping 8.5¢ on the day to 13¢ before ending the period almost doubled at 8¢.
Verde Potash led the way in value gains, climbing almost $2 at one point before ending the period up $1.56 at $8.58. The company recently released an updated resource at its Cerrado Verde project that doubled the inferred resource to 2.7 billion tonnes grading 8.88% potassium oxide, while the indicated resource stands unchanged at 74 million tonnes grading 9.22% potassium oxide. Verde is also continuing its research into producing conventional potassium chloride from its resource, with an active demonstration plant in Pennsylvania.
Encouraging drill results carried Nicaragua-focused Calibre Mining forward for a second week, once again becoming the most-traded stock with 37.2 million shares traded. The heightened activity lead to an 11¢ gain to end at 49¢, adding to the 20¢ it climbed the week before. Drill results from its Primavera prospect include 261.7 metres carrying 0.78 gram gold and 0.3% copper and 276.8 metres averaging 0.5 gram gold and 0.22% copper. B2Gold is earning 51% of the project and following the results exercised its right to become operator.
Hana Mining saw 11.9 million shares traded and gained 27¢ to end at $1.62 after releasing high grade copper drill hits and announcing a $15-million financing. Results from the Ghanzi project in Botswana including 5.3 metres at 5.11% copper and 172 grams silver per tonne and 16 metres at 1.14% copper and 18 grams silver. The financing is set at $1.35 per share.
Struggling St. Elias Mines released further details on the drill program at its Tesoro gold project in Peru, but a
fter a mild recovery fell back to its recent lows. On Jan. 10 the company released results from 11 holes that, while containing some high gold grades, showed narrow widths of well under a metre. On that news the company’s share price plunged 58¢ to 84¢, having already lost 50¢ in the days prior. In the recent update, the company announced that hole 6 did in fact hit a longer interval of 37.9 metres grading 0.74 gram gold and is doing further tests. The update led to a 9¢ gain on the day but later losses had the company end back at 86¢ for a 21¢ loss.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Calibre MngCXB372330.540.400.49+0.12
Hudson River MHRM186790.140.050.08+0.04
Goldbrook VentGBK159780.370.350.370.00
Hana MngHMG119201.701.301.62+0.27
Seafield ResSFF88630.250.170.22+0.05
Encanto PotashEPO84060.270.250.25-0.02
Belo Sun MngBSX82271.170.991.15+0.01
Victoria GoldVIT73480.500.400.49+0.09
SGX ResSXR70050.870.430.44-0.05
Northern Gld MNGM68690.260.180.23+0.06
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Harvest GoldHVG20230.050.020.05+150.0
Northcore ResNCR48180.030.010.02+100.0
Hudson River MHRM186790.140.050.08+100.0
Radisson MngRDS2790.120.070.12+71.4
Fort St J NickFTJ1010.220.130.22+69.2
Brandenburg EnBBM890.100.090.10+66.6
Kenieba GoldfKEN600.100.090.10+66.6
Upper Can GoldUCC1710.160.090.15+66.6
Soldi VentSOV13950.100.060.10+66.6
Iconic MnlsICM910.090.080.08+60.0
Sea Green CapSGS1230.010.010.01-50.0
Z-Gold ExplZGG140.080.060.06-45.4
Arctic Hntr UrAHU150.100.100.10-41.1
Honey Badger ETUF1500.050.050.05-37.5
RT MineralsRTM1650.080.070.07-30.0
Nebu ResNBU28680.190.110.12-29.4
Mega CopperMCU180.100.080.08-27.2
Colstar VentCTR600.190.140.14-26.3
Jazz ResJZR160.140.140.14-26.3
G4G ResGXG14790.060.030.03-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Verde PotashNPK5520998.58+1.56
Batero GoldBAT14504802.90+0.56
Energold DrillEGD14766795.28+0.43
Great Quest MeGQ2338332.06+0.41
Trelawney M&ExTRR17348683.71+0.36
Pac Booker MinBKM193489.00+0.30
Mirasol ResMRZ1309444.39+0.29
Esperanza ResEPZ5930841.76+0.29
EPM Mng VentEPK256001.10+0.29
Hana MngHMG119197211.62+0.27
St Elias MnsSLI27334190.86-0.21
Maudore MinlsMAO332765.19-0.21
Tigray ResTIG4940420.90-0.16
WCB ResWCB1004900.65-0.15
Geomega ResGMA3115250.92-0.14
Newstrike CapNES5520442.69-0.13
Tasman MetalsTSM14154272.05-0.12
Samco GoldSGA560001.05-0.10
First PointFPX27660500.61-0.09
Salazar ResSRL1453920.47-0.09
U.S. markets
Federal Reserve Chairman Ben Bernanke anounced the central bank will keep interest rates near zero until at least 2014. The Dow Jones Industrial Average fell 0.47% or 60.02 points to close at 12,660.46 and the S&P 500 index slipped 0.07% or 0.95 of a point to 1,316.33. The Philadelphia Gold and Silver index gained 15.66 points or 8.37% to 202.68, while the New York spot price for gold rose US$70.30 per oz. to end at US$1,737.30.
Randgold Resources advanced US$5.11 to close the week at US$114.24. The company announced that its new Gounkoto gold mine in Mali is expected to recoup its relatively low capital cost by the end of the first quarter of 2012. Randgold also noted that Gounkoto accounted for a significant part of the Loulo complex’s 2011 production, which enabled Loulo to grow overall output while getting its Yalea underground gold mine on track and pressing ahead with underground development at its Gara deposit.
Allied Nevada rose US$4.51 to US$37.23 per share on its preliminary 2011 operating results and 2012 production guidance. Its Hycroft mine produced 104,000 oz. gold and 479,440 oz. silver last year with adjusted cash costs of about US$490 per oz. It expects to produce 180,000 to 220,000 oz. gold and 750,000 to 850,000 oz. silver in 2012.
Kinder Morgan Energy Partners’ decision to invest about US$140 million in expanding coal handling facilities along the Gulf Coast sent shares of Arch Coal up US64¢ to US$14.51. The companies also signed a long-term throughput agreement that will help support the expansion of the export facilities. The two companies are in final discussions to include, in the throughput agreement, port space for coal shipments at KMP-owned facilities on the East Coast.
Rio Tinto‘s move to take a 51% stake in Ivanhoe Mines sent Ivanhoe shares down US$2.03 or 10.6% to US$17.08. Rio acquired an additional 15.1 million shares from two sellers in a privately negotiated deal. The shares were bought for an aggregate of C$302 million or C$20 apiece. About 70% of the construction at Oyu Tolgoi is complete and commercial production of copper concentrate is expected in the first half of 2013. Rio Tinto ended the week up US$2.65 to US$57.34.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA12825610.7410.0510.43+0.26
Freeport McMo*FCX10366448.9643.0246.13+3.03
Kinross Gold*KGC7323011.9510.3411.66+1.45
Potash C Sask*POT5617647.6543.9147.45+2.70
Alpha Nat Res*ANR5012821.7519.5321.65+1.74
Barrick Gold*ABX4994949.9045.2049.51+3.68
Newmont Mng*NEM4072561.7957.2461.51+2.24
Arch Coal*ACI3940514.9513.5214.51+0.64
Peabody Enrgy*BTU3855038.5034.7136.14-1.71
Silver Wheatn*SLW3666135.9531.3435.70+4.20
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Tri-Valley*TIV67090.190.130.18+38.4
Fischer-W Gld*FWGO5410.040.020.04+33.3
Li3 Energy*LIEG8170.090.070.08+33.3
Golden Star*GSS172532.201.682.20+26.4
Minefinders*MFN2011414.6013.1514.34+26.3
Crosshair Eny*CXZ1590.530.410.53+26.1
Radius Gold*RDUFF1100.300.230.30+25.0
Intl Tower Hi*THM5875.624.585.62+23.5
Fortuna Silvr*FSM12146.865.656.83+21.9
Exeter Res*XRA4983.693.003.69+20.9
Habanero Res*HBNRF300.060.060.06-14.2
Ivanhoe Mines*IVN2370919.2416.6917.08-10.6
Douglas Lk Ml*DLKM19590.110.090.09-10.0
Cornerstone C*CTNXF1770.130.110.12-7.6
Mountain Prov*MDM884.724.304.34-7.4
Uranium Res*URRE100371.170.981.01-6.4
Pan Am Silver*PAAS1987123.6721.0023.17-6.2
Solitario Res*XPL6581.811.571.65-6.2
Kimber Res*KBX9621.291.091.19-6.3
Kobex Mnls*KXM530.660.610.62-6.0
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Royal Gold*RGLD431162775.42+7.91
Buenaventura*BVN500891543.18+5.14
Randgold Res*GOLD2864404114.24+5.11
Walter Energy*WLT318303571.37+4.98
Allied Nevada*ANV83240137.23+4.51
Goldcorp*GG3516773949.24+4.26
Silver Wheatn*SLW3666134935.70+4.20
Agnico-Eagle*AEM993162039.29+4.15
Franco-Nevada*FNV97853545.10+3.89
Barrick Gold*ABX4994937149.51+3.68
Ivanhoe Mines*IVN2370949617.08-2.03
Peabody Enrgy*BTU3854995536.14-1.71
Pan Am Silver*PAAS1987118823.17-1.55
Mesabi Trust*MSB102085431.76-0.95
Natural Rs Pt*NRP18724527.70-0.39
Mountain Prov*MDM875724.34-0.35
Augusta Res*AZC4329693.04-0.17
Alliance Rs P*ARLP24676878.25-0.14
Solitario Res*XPL6583991.65-0.11
Denison Mines*DNN6374721.83-0.10
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