Toronto Stock Exchange
The old “sell in May and go away” adage was not holding up for the May 16-20 period as the TSX Composite Index rose 292 points to finish at 13,652 points.
The lift came as forecasters predicted Canada’s central bank would resume rate hikes later than originally anticipated. The consensus now is that higher rates won’t come until September thanks to the fall in commodity prices mitigating against inflation risk.
And that fall in commodity prices continued for a suite of base metals as prices lowered for copper, aluminum, nickel, tin and zinc. But that did not hamper the Capped Metals & Mining Index, which gained 70 points and finished at 1,429.54 points.
One commodity, however, continued to show a stubborn refusal to sag: The yellow metal gained US$21 to finish at US$1,515.40 per oz., which helped the Global Gold Index rise 11 points to finish at 375.39 points.
The biggest winner of the period by percentage point gain was Champion Minerals. The iron explorer’s shares shot up 38% to $2.16. The company announced the discovery of a new iron zone at its Lac Moire Project in northeastern Quebec. The discovery was made with a hole intersecting 130.2 metres grading 30.5% total iron.
Jaguar Mining‘s stellar first-quarter results earned a positive revaluation from the market. The company’s shares were up 26% to $5.22 after it announced record revenue of US$55.1 million – 36% over revenues from the same period last year. Those revenues trickled down into a net income of US$3.7 million or 4¢ per share. The better numbers came thanks to stronger operating margins, as Jaguar managed to earn US$659 for every ounce it sold. Gold production for the period came in at 41,449 oz. at a cost of US$727 per oz.
Press reports out of India were seen as the main driver behind Minemakers‘ strong market performance. The company’s shares were up 25% to 50¢. The reports claimed that a memorandum of understanding would soon be signed between Minemakers and a government body which would clear the path for the development of Minemaker’s Wonarah Rock Phosphate Project. The company would only confirm that it is in negotiations with the government body.
Medoro Resources won market favour by submitting a preliminary economic assessment on its Marmato project in Colombia. Once the market had time to digest the economics of the project, the company’s shares climbed 21% to finish at $1.70. The study considers an open pit that would turn out 283 million tonnes of ore at a rate of 40,000 tonnes per day to produce 340,000 oz. gold and 1.3 million oz. silver per year over a 21-year mine life. The cash operating costs were also eye-catching as they arrived at a very respectable US$524 per oz. gold, net of silver credits.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Equinox MinlsEQN1032188.117.988.07-0.02
Lundin MngLUN273628.978.398.84+0.28
Yamana GoldYRI2426811.9411.4011.75+0.29
Eastern PlatinELR214491.030.900.96+0.04
Kinross GoldK1907614.6113.5814.55+0.74
Teck BTCKB1812749.1144.0548.69+3.84
Eldorado GoldELD1756515.4014.4215.28+0.63
Cline MngCMK171193.382.622.84-0.50
Barrick GoldABX1490544.7543.4844.38+0.75
GoldcorpG1386947.9346.1947.50+1.22
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Champion MinlsCHM43802.221.442.16+38.4
MalagaMLG35990.310.190.29+38.1
Excellon ResEXN16280.900.670.90+26.7
Jaguar MngJAG16335.314.155.22+26.0
MinemakersMAK120.500.410.50+25.0
Golden PeaksGL910.750.580.74+23.3
Medoro ResMRS25581.741.381.70+21.4
Silvermex ResSLX49810.730.520.71+18.3
Dynacor Gold MDNG1671.481.251.48+17.4
Orezone GoldORE8054.523.644.35+16.3
North Am En PaNOA49110.446.897.54-27.0
Diamond FieldsDFI1460.310.280.28-17.6
Allied GoldALG3210.520.470.47-17.5
Lithium AmericLAC4341.851.481.48-16.3
Revett MnlsRVM8084.103.333.54-15.1
Cline MngCMK171193.382.622.84-14.9
Pac NW CapPFN7800.350.250.29-14.7
Western LithiuWLC9760.970.790.82-14.5
Polaris MinlsPLS1251.100.860.93-13.8
Yukon-Nev GoldYNG19860.450.380.41-12.7
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
First QuantumFM3257747132.88+9.78
Inmet MiningIMN89628767.35+3.99
Teck BTCKB1812716648.69+3.84
Labdr I-Ore RoLIF_U35797573.85+3.59
Royal GoldRGL1962158.26+3.24
Teck ATCKA2361749.65+3.10
Allied NevadaANV55933634.06+2.82
IAMGold CorpIMG995207420.40+2.19
Tahoe ResTHO78305018.35+1.55
Newmont MngNMC3206552.58+1.49
North Am En PaNOA4909957.54-2.79
Russell MetalsRUS126025324.55-1.13
Northern Dyn MNDM97108211.08-0.79
Horizns G BearHGD295424010.65-0.69
Revett MnlsRVM8079513.54-0.63
Sherritt IntlS80340426.87-0.57
Cline MngCMK171189582.84-0.50
Primero MngP12572904.51-0.46
North Am PallPDL57867263.39-0.41
US Gold Can AcUXE178206.30-0.40
TSX Venture Exchange
A market rally in the latter half of the May 16-20 period saved the S&P TSX Venture Composite Index from another period of sharp decline. The index ended at 2,031.44 points, down only 6.78 points after declining almost 70 points in the first half of the period. Volume was markedly low, averaging 117 million shares traded daily.
Despite the low volume, Orbite Exploration managed to have 30.8 million shares traded in the period. The company’s share price dipped almost a dollar at one point, trading as low as $2.10, before bouncing back and ending the period up 34¢ at $3.39, though still well off its mid-April high of $5.69. Orbite stated it had no material changes that would explain the activity. The week before, the company announced it had filed a new patent application that would cover the extraction of rare earths from materials other than clay, and intends to file new applications for two new “patent families” in the next few weeks.
Second on the activity chart, Encanto Potash had 20.9 million shares traded as it climbed 7¢ to 30¢. Over 10 million of those shares were traded on the day Encanto issued an operational update, stating that it is on track to nearly double the resource at the Muskowekwan project. The increase is dependent on the Muskowekwan First Nation membership voting to support the transfer of 62.7 sq. km of reserve land to a joint venture between Muskowekwan and Encanto.
Mirasol Resources had the biggest value gain in the week, climbing 82¢ to end at $5.50. The company did not release news in the period, but the week before it announced an initial resource for its Joaquin silver project in Argentina’s Santa Cruz province and drill results from its Virginia project in the same region. The resource outlined 19.6 million indicated ounces at 85 grams silver per tonne and 47.9 million inferred silver oz. at 108.1 grams silver, with both totals incorporating both the oxides and sulphides. Drill results from Virginia included 29.1 metres grading 251 grams silver and 26.6 metres averaging 230 grams silver, both true widths.
Rising 60¢ to an all-time closing high, Great Quest Metals ended at $3.80 in a period that saw it announce board nominations in an information circular. Along with the 6 current directors, Great Quest has nominated Gordon Peeling to the board, who has just wrapped up a 13-year term as president of the Mining Association of Canada. The comp
any recently began drilling 800
shallow holes at its 94%-owned Tilemsi phosphate project in Mali.
Colombia-focused Batero Gold released several long low-grade drill hits from its Batero-Quinchia project that sits roughly 20 km north of Medoro Resources’ Marmato project. Results included hole 13 that hit 592.5 metres grading 0.45 grams gold per tonne and 0.12% copper.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Orbite Expl AORTA308283.662.103.39+0.34
Encanto PotashEPO117380.320.230.29+0.07
Golden Dawn MlGOM91020.150.090.14+0.03
ICN ResICN78780.900.530.68+0.10
Allana ResAAA74761.801.641.76-0.01
BCGoldBCG73200.110.080.11+0.01
Aurcana CorpAUN69460.670.550.62-0.04
Ashburton VentABR65940.170.100.120.00
RPT UraniumRPT62360.130.120.12-0.01
Cobalt CoalCBT57450.030.010.030.00
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Cougar MnlsCOU21210.050.030.04+100.0
Vulcan MnrlsVUL2620.290.200.28+47.3
Stellar Pac VtSPX22480.110.080.10+42.8
Westridge ResWST1030.750.510.70+40.0
Bison Gold ResBGE5910.340.260.34+36.0
Central Iron OCIO2880.290.230.27+35.0
Amex ExplAMX5010.240.180.24+33.3
Encanto PotashEPO117380.320.230.29+31.8
IBC Adv AlloysIB53930.300.190.26+30.0
Houston LakeHLM2790.140.120.14+27.2
Anglo-BomarcANB1000.140.140.14-46.1
Lithic ResLTH3030.200.150.16-30.4
Inlet ResINL290.200.140.16-30.4
Upper Can GoldUCC660.420.310.35-30.0
Alpha GoldALQ2400.060.050.05-28.5
G4G ResGXG1310.110.080.08-27.2
Midasco CapMGC520.120.120.12-25.0
MazarinMAZH340.040.030.03-25.0
Klondike SilvKS1080.310.240.24-25.0
Lakewood MngLKW1330.030.030.03-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Mirasol ResMRZ3565335.50+0.82
Great Quest MeGQ6009763.80+0.60
Quest Rare MnlQRM26970767.72+0.55
New Millen CapNML42504582.95+0.47
Cayden ResCYD1608904.00+0.40
Orbite Expl AORTA308281353.39+0.34
Adriana ResADI16649371.61+0.31
Alderon ResADV11306963.04+0.29
Titanium CorpTIC5401062.60+0.23
Atacama Pac GdATM1451545.35+0.20
Geomega ResGMA2120352.88-0.56
Hana MngHMG50755592.66-0.50
Batero GoldBAT14918743.09-0.49
Loncor ResLN2073432.76-0.41
Mansfld MnrlsMDR3619291.88-0.20
NorthquestNQ204000.92-0.18
Westar ResWER8120351.12-0.18
Lago Dourado MLDM3882800.52-0.17
Challenger DeeCDE1721500.63-0.16
Renaissnc GoldREN1456311.84-0.15
U.S. markets
Uncertainty about the outcome of the euro zone’s debt problems weighed heavily on U.S. equity markets during the May 16-20 trading week. The week ended with Fitch ratings agency’s downgrade of Greece. The Dow Jones Industrial Average slid 83.71 points or 0.67% to finish at 12,512.04, while the S&P 500 index dropped 4.5 points or 0.34% to 1,333.27. The Philadelphia Gold and Silver index edged up 4.03 points or 2.06% to close at 199.29.
Drill results at Allied Nevada Gold‘s Hasbrouck project in Nevada helped raise the company’s shares by US$2.59 to US$34.82. Delineation drilling in the Saddle Zone included 85 metres of 3.0 grams gold and 102.9 grams silver within a larger intercept of 188 metres grading 1.9 grams gold and 62.3 grams silver. Hasbrouck is about 80 km south of the Round Mountain open-pit mine, a joint venture between Kinross Gold and Barrick Gold. In the first quarter, Allied Nevada increased its land position south of the current known resource from about 2 sq. km to about 27 sq. km to encompass geophysical anomalies identified through recent gravity surveying, zones of epithermal alteration and sites of historical
mining. Drilling is expected to start in the second half of the year.
Yanzhou Coal moved up US$2.27 to US$38.46 per share in the wake of media reports that it is bidding for Australia’s Whitehaven Coal. Earlier this month,
China’s state-owned newspaper, The
China Daily, wrote that Yanzhou had offered US$3.38 billion for Whitehaven. In 2009 Yanzhou acquired Australia’s Felix Resources for US$3.2 billion.
Freeport McMoRan Copper & Gold, meanwhile, was the most actively traded stock, with 133 million shares changing hands. It closed the week up 11¢ at US$48.38 on no news. In late April Freeport said it expects consolidated sales from its mines this year will reach roughly 3.9 billion lbs. copper, 1.6 million oz. gold and 73 million lbs. molybdenum.
Finally, Teck Resources, Royal Gold, Minas Buenaventura and Alliance Resource Partners topped the list of value gains, all on no news.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Freeport McMo*FCX13305849.3046.0648.38+0.11
Alcoa*AA11811117.2916.2616.26-0.84
Mosaic*MOS7515869.5164.9065.42-1.93
Intl Coal Gp*ICO5958914.5314.4614.50+0.05
Silver Wheatn*SLW5670735.5632.9535.08+0.98
Hecla Mining*HL540528.357.828.03-0.10
Potash C Sask*POT5284955.7551.2752.04+0.46
Barrick Gold*ABX4550346.1244.5345.60+0.59
Alpha Nat Res*ANR3900751.7347.7650.05+1.61
Goldcorp*GG3813149.3047.4348.67+0.91
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Linux Gold*LNXGF1080.040.040.04+33.3
Radius Gold*RDUFF3170.730.560.71+29.0
US Antimony*UAMY5002.491.562.10+22.8
Paramount Gld*PZG47823.042.653.01+12.7
America West*AWSR992.001.221.35+12.5
Nevsun Res*NSU39456.135.156.03+11.0
Caledonia Mng*CALVF14430.130.090.12+9.0
Claude Res*CGR16442.201.772.17+8.5
Western Coppr*WRN6203.482.853.48+8.0
Allied Nevada*ANV98335.2531.8534.82+8.0
Am Engy Field*AEFI3840.460.220.30-31.8
North Am En P*NOA83610.957.157.80-27.4
Fischer-W Gld*FWGO1270.050.040.04-20.0
Silver Dragon*SDRG8750.140.110.11-15.3
Starfield Res*SRFDF620.070.060.07-12.5
Lake Vict Mng*LVCA2190.350.280.30-11.7
Petaquilla Mn*PTQMF4140.790.690.72-11.1
Uranium Ener*UEC36493.102.722.75-11.0
Oromin Expl*OLEPF3491.130.991.03-10.4
North Am Pall*PAL230843.933.463.50-10.2
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Teck B*TCK2295154950.00+3.64
Royal Gold*RGLD332973559.88+3.00
Buenaventura*BVN541514441.07+2.66
Alliance Rs P*ARLP95247572.39+2.59
Allied Nevada*ANV98302734.82+2.59
Yanzhou Coal*YZC145358738.46+2.27
AngloGold Ash*AU1168281845.80+2.19
Massey Energy*MEE2630615361.00+1.88
Consol Energy*CNX1653173649.00+1.73
Randgold Res*GOLD341108977.84+1.72
North Am En P*NOA8359497.80-2.95
Mosaic*MOS7515754265.42-1.93
Compass Mnls*CMP32274290.31-1.29
Alcoa*AA11811064916.26-0.84
Northern Dyn*NAK254352511.34-0.68
Agrium*AGU310773379.94-0.49
North Am Pall*PAL230840393.50-0.40
Mesabi Trust*MSB46337131.50-0.35
Uranium Ener*UEC36487692.75-0.34
Alexco Res*AXU22321997.63-0.27
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