Market news

Toronto Stock Exchange

The S&P/TSX Composite Index rose a modest 56 points to 13,371.70 over the July 4-8 period, as upward momentum was cut short by concerns about the strength of the global economic recovery, owing to higher energy prices, and continued worries over European and U.S. debt.  

But while the index overall didn’t exhibit much strength, the price of gold continued to rise as faith in major currencies eroded. The Global Gold index reflected the mood of investors, rising 14 points to finish at 375.24. The price for gold rose US$55 to US$1.541.50 per oz. for the period.

The Capped Metals & Mining Index, however, did not move in sync with base metals prices. The index fell 2 points to finish at 1,438.05 points, despite higher prices for copper, aluminum, nickel, tin, lead and zinc. 

Avion Gold was the period’s most actively traded stock, managing a gain of 24¢ to
finish the period at $2.18. The activity came on the back of two key announcements, the first of which was an initial reserve estimate for deposits at its Tabakoto project in Mali. Open-pit and stockpiled proven and probable reserves came in at 2.6 million tonnes grading 2.9 grams gold, while underground reserves came in at 4.6 million tonnes grading 4.5 grams gold. Two days later the company announced it had produced 25,823 oz. gold at Tabakoto in the second quarter. This amount, higher than the 24,500 oz. target, puts Avion in-pace with its guidance of 100,000 oz. production for 2011.

The news was also good from Bannerman Resources. The company announced it received an offer from Hanlong Mining Investment – a subsidiary of Chinese conglomerate Sichuan Hanlong Group. While the all-cash, A$0.61-per-share offer is highly conditional, it was enough to send the company’s shares up 44% to finish the period at 39¢. Bannerman’s key asset is the Etango uranium project in Namibia. The company says the offer takes advantage of low share prices for uranium juniors in the wake of Japan’s Fukushima nuclear disaster. 

European Goldfields was the period’s second largest gainer by percentage. The company’s shares were up 35% after confirmation that the Ministry of Environment, Energy and Climate Change in Greece approved an environmental impact study for its Stratoni mine, Olympia project and Skouries project. An expansion of the port
facilities at Stratoni was also approved. Stratoni is a high-grade lead, zinc and silver mine in northeastern Greece. 

Mawson Resources released a technical report for its Alto Quemado copper-gold project in Peru. The report recommends a US$750,000 exploration program, which includes a minimum 1,850 metres of diamond drilling. The news helped lift the company’s shares by 25%, to $2.10. The company has also kicked off a summer work program at its Rompas gold-uranium project in Finland.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Avion GoldAVR332792.421.902.18+0.24

Eastern PlatinELR219691.050.790.91+0.11

B2GoldBTO212913.543.233.31+0.05

Kinross GoldK1997516.3114.9916.02+0.79

Uranium OneUUU154033.082.672.91+0.25

Cline MngCMK138402.722.282.30+0.01

Yamana GoldYRI1350012.1611.1011.90+0.64

Eldorado GoldELD1298915.8413.8015.38+1.15

Teck BTCKB1239551.3849.6150.15+1.13

Lundin MngLUN117197.557.147.22-0.18

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Bannerman ResBAN10060.400.290.39+44.4

Europn GoldfldEGU595613.849.8713.65+35.1

Strathmore MnlSTM11300.680.500.68+33.3

Crystallex IntKRY6030.140.090.12+33.3

Minco GoldMMM1921.841.411.84+25.1

Mawson ResMAW2462.181.702.10+25.0

Yorbeau Res AYRBA5810.390.220.31+24.0

Royal NickelRNX15971.471.051.32+23.3

Mundoro CapMUN1260.710.460.59+20.4

Candente CopprDNT21281.351.101.35+19.4

Moly MinesMOL24360.790.640.67-15.1

Vaaldiam ResVAA3390.140.120.12-14.2

NoventaNTA1190.630.550.61-11.5

Frontier Rr ErFRO1462.101.851.85-9.7

Corvus GoldKOR4590.570.520.52-8.7

Romarco MnrlsR89821.601.301.50-8.5

Labdr Iron MnsLIM44112.4711.1311.26-8.0

Nevada CopperNCU12155.895.305.32-7.9

Gold ReserveGRZ802.502.212.26-7.7

Katanga MngKAT11791.711.541.55-7.1.

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Europn GoldfldEGU595599113.65+3.55

Silver WheatonSLW746377034.87+3.04

Allied NevadaANV95766236.62+2.61

First MajesticFR349695219.97+2.13

Imperial MetalIII8375921.28+1.92

Potash Cp SaskPOT708316956.89+1.81

GoldcorpG923797948.46+1.81

AgriumAGU381044886.37+1.68

Kirkland Lk GdKGI171065316.70+1.50

Endeavr SilverEDR23854719.62+1.50

First QuantumFM1884668136.20-4.42

Labdr Iron MnsLIM44124211.26-0.99

Horizns G BearHGD144681610.44-0.61

Russell MetalsRUS38366624.11-0.47

Nevada CopperNCU12148495.32-0.46

Agnico-EagleAEM321608960.54-0.44

Avalon Rare MtAVL20971366.35-0.35

Copper Mtn MngCUM43641697.19-0.28

Frontier Rr ErFRO1455551.85-0.20

Labdr I-Ore RoLIF_U46147438.60-0.19

TSX Venture Exchange

Shrugging off poor job numbers from the U.S. and worries of a spreading debt crisis in Europe, the S&P TSX Venture Exchange Index managed its best period in months between July 4 and 8. The index rose 80.63 points to 1,984.81, after four days of gains were offset by a 1.1-point drop on the final day. Volume average was down to 82.4 million shares traded daily, owing to a July 4 plunge related to the closed U.S. markets.

A single step-out hole helped send Atac Resources up $1.40 to $8.70, making it the biggest value gainer of the period and having it approach its all-time high of $9 hit in November. Hole 10, targeting the Conrad zone of Atac’s Rackla project in the Yukon, hit 115 metres grading 3.15 grams gold per tonne from 176 metres depth. Atac drilled the hole 100 metres east of Conrad discovery hole 8 that cut 21 metres averaging 8.03 grams gold from 41 metres downhole last fall. The step-out result is the first of many expected this year, as Atac works through a $25-million exploration program to establish multiple Carlin-type deposits at Rackla.

Rainy River Resources also gained some ground on drill results after reporting a 2-metre intercept grading 1,335 grams gold and 76.7 grams silver per tonne from 42 metres below surface. The company drilled the bonanza grade in the western area of its Rainy River project in Ontario, 800 metres northwest of the Beaver Pond zone. Rainy also helped boost Northern Superior Resources after agreeing to complete a $500,000 financing as part of an option agreement. Northern Superior gained 17¢, or 55%, to end at 47¢.

Bolero Resources climbed 33¢, or 150%, to 55¢ on 4.7 million shares traded. The company has started work on its Red Chris South prospect, contiguous to Imperial Metals’ sizable Red Chris copper-gold project in northern B.C. Bolero has planned mapping and sampling on the western part of the project that was not explored last year, with four 400-metre holes to follow. Bolero secured the 52.6-sq.-km land package by paying $33,000 and issuing 465,000 shares.

Lumina Copper climbed $1.10 in the period to $7.05 after releasing several long intercepts from its Taca Taca copper-gold-molybdenum project in Argentina. Hole 14 hit 254 metres grading 0.95% copper, 0.2 gram gold and 0.02% molybdenum, hole 16 cut 187 metres of 0.99% copper, 0.1 gram gold and 0.013% molybdenum, and hole 17
returned 84 metres carrying 1.81% copper, 0.27 gram gold and 0.04% molybdenum.

Orbite Exploration was the heaviest-traded stock with 10.7 million shares traded as it gained 44¢ to end at $3.70. The company, in the midst of changing its name to Orbite Aluminae, closed a $57.5-million bought-deal private placement in the period. Under the financing, Orbite issued 18 million special warrants at $3.20 each, exchangeable for a share and a half-warrant.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Orbite Expl AORTA106834.003.263.70+0.44

Uracan ResURC96500.090.080.080.00

Sandstorm ResSSL92641.451.181.35+0.16

RPT UraniumRPT90420.120.090.110.00

Cons FortressCFR88250.150.060.14+0.07

Selwyn ResSWN70690.260.190.26+0.03

Allana ResAAA68301.571.401.45-0.08

Pele Mtn ResGEM63220.340.250.28+0.09

Uranium NorthUNR47940.180.130.17+0.03

Luna GoldLGC45690.660.540.60-0.04

TSX-V greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Bolero ResBRU34670.580.220.55+120.0

Cons FortressCFR88250.150.060.14+100.0

Northern Sup RSUP20700.640.270.47+56.6

Glass EarthGEL6660.380.270.37+48.0

Pele Mtn ResGEM63220.340.250.28+47.3

Goldbank MngGLB270.250.250.25+47.0

Georox ResGXR3580.190.140.19+46.1

G4G ResGXG11350.100.090.10+42.8

Visible Gold MVGD5540.320.220.31+40.9

Aguila Am ResAGL4990.380.250.35+40.0

Upper Can GoldUCC22200.250.180.19-36.6

Manicouagan MlMAM900.200.140.14-36.3

NuLegacy GoldNUG2890.270.180.19-34.4

St Eugene MngSEM38060.120.080.09-30.7

Stikine GoldSKY3790.270.190.19-29.6

Finlay MinrlsFYL200.200.170.17-26.0

Mega CopperMCU130.170.120.12-25.0

Galena CapitalFYI7460.040.030.03-25.0

Nomad VenturesNMD340.200.200.20-23.0

Urastar EnergyURS350.470.400.40-21.5

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Atac ResATC9359378.70+1.40

Rainy River RsRR254617310.47+1.12

Lumina CopperLCC2167197.05+1.10

Anfield NickelANF1295824.90+0.68

Mirasol ResMRZ1996414.93+0.63

Wildcat SilverWS16033612.22+0.60

Strategic MetlSMD9540013.60+0.45

Orbite Expl AORTA106825193.70+0.44

Kaminak GoldKAM21000684.18+0.43

Callinan MnsCAA3130423.81+0.42

Quest Rare MnlQRM10317905.85-0.81

Gold CanyonGCU14009842.38-0.33

Tasman MetalsTSM3760034.62-0.19

Riva GoldRIV1755571.00-0.17

Full Metal MnlFMM2252400.60-0.12

Lions Gate MtlLGM11996760.55-0.11

Urastar EnergyURS350000.40-0.11

Bralorne GoldBPM380501.19-0.11

Upper Can GoldUCC22199000.19-0.11

Minaurum GoldMGG588000.49-0.11

U.S. Markets

Disappointing jobs data sent a chill through markets in the U.S., with the unemployment rate rising to 9.2% in June, the highest since December. Reuters reported that U.S. state and local governments “cut thousands of jobs in June, pushing their payrolls down to the lowest in five years.” Markets were closed for Independence Day on July 4. When they re-opened, the Dow Jones Industrial Average rose 74.43 points, or 0.6%, to close at 12,657.20, while the S&P 500 Index rose 4.13 points, or 0.3%, to 1,343.80. The Philadelphia Gold and Silver Index climbed 8.36 points, or 4.19%, to 207.81.

Silver Wheaton topped the charts with a gain of US$3.84 to US$36.25 per share, on no news. The silver streaming company posted record revenues of US$158.2 million in the first quarter of the year, up 84% over the year-earlier quarter. Net earnings rose 142% to a record US$122.2 million.

Cliffs Natural Resources advanced US$3.72 to US$97.42, also on no news, while Agrium climbed US$3.48 to US$89.80 per share. On July 6 Agrium announced it will buy Evergro Canada – the leading manufacturer and distributor of horticultural and professional turf products in Western Canada with annual annual revenues of US$60 million. The acquisition allows Agrium to grow its footprint in Canada, while enhancing its expertise in providing controlled release fertilizers, pest control and soil amendment products, as well as turf and vegetable seed products to the North American market. 

Shares of Allied Nevada Gold rose US$3.30 to US$38.11. Highlights from infill drilling in the Vortex zone at the company’s Hycroft mine near Winnemucca, Nev., included 125 metres grading 0.7 gram gold per tonne and 158 grams silver, and 22 metres averaging 2.6 grams gold and 219.8 grams silver. Drilling at Hycroft will continue throughout the year with five to six drill rigs.

Shares of specialty chemicals producer OM Group slid US$1.86 to US$38.99.
On July 5, the company signed an agreement to purchase Vacuumschmelze – a producer of advanced materials and specialty magnetics – from the town of Hanau, Germany, for €700 million, including US$50 million in stock.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA8374616.6016.1216.38+0.07

Freeport McMo*FCX7065356.1252.7655.12+1.62

Silver Wheatn*SLW4148537.1433.3036.25+3.84

Kinross Gold*KGC2974516.9516.0016.67+0.88

Barrick Gold*ABX2938847.0445.1546.24+1.46

Potash C Sask*POT2835559.4456.8359.19+3.15

Hecla Mining*HL264988.287.788.00+0.31

Mosaic*MOS2477470.6967.7570.58+2.75

Goldcorp*GG2401651.0848.1050.49+3.06

Newmont Mng*NEM2207155.6053.6854.76+1.02

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Cream Mnrls*CRMXF4840.230.160.21+31.2

Minco Gold*MGH8171.921.521.89+26.0

Am Engy Field*AEFI2340.250.210.25+19.0

Silvercorp Mt*SVM258910.909.6210.77+18.4

Vista Gold*VGZ25963.362.813.32+17.3

Almaden Mnls*AAU12053.843.313.80+17.2

Claude Res*CGR14602.231.922.18+14.1

Xtra-Gold Res*XTGR1011.961.751.94+12.7

Alexco Res*AXU21198.477.378.06+12.1

Uranium Ener*UEC3413.503.093.48+11.9

Grandview Gld*GVGDF130.090.040.04-55.5

Canarc Res*CRCUF1760.160.130.14-22.2

Gold Am Mng*SILA4120.050.040.04-20.0

Starfield Res*SRFDF1140.050.040.05-16.6

Cornerstone C*CTNXF1060.270.220.22-15.3

Gold Reserve*GRZ2112.622.322.35-9.6

El Capitan Pr*ECPN9490.920.790.84-8.7

Habanero Res*HBNRF130.110.100.11-8.3

Apolo Gold*APLL190.130.130.13-7.1

Dejour Enterp*DEJ3110.330.310.31-6.0

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Silver Wheatn*SLW4148493336.25+3.84

Cliffs Nat Rs*CLF1165360897.42+3.72

Agrium*AGU206040589.80+3.48

Allied Nevada*ANV101340538.11+3.30

Potash C Sask*POT2835515359.19+3.15

Goldcorp*GG2401561750.49+3.06

Mosaic*MOS2477353670.58+2.75

Royal Gold*RGLD197420160.22+2.31

Natural Rs Pt*NRP23124535.00+2.04

Consol Energy*CNX1151458450.25+1.91

OM Group*OMG186609738.99-1.86

Alpha Nat Res*ANR1616448445.29-1.46

Alum Cp China*ACH49310120.51-1.31

Mechel*MTL313712024.13-0.51

Rare Elemt Re*REE478219810.45-0.48

Vale*VALE1527884733.13-0.30

Arch Coal*ACI1718744226.69-0.30

Gold Reserve*GRZ2114622.35-0.25

Solitario Res*XPL2593842.78-0.16

Yanzhou Coal*YZC95739838.89-0.16