Market news

Toronto Stock Exchange

The S&P/TSX Composite Index fell 72.16 points to 13,299.54 during the July 11-15 period, as worries over U.S. and European debt grew. During the week, the U.S. Federal Reserve said it was not ready to stimulate the economy, while eight European banks failed stress tests. 

The price of gold gained US$49.90 to US$1,594.10 per oz., which helped the Global Gold Index jump 17.77 points to 393.01. The Capped Metals & Mining Index, however, fell 11.06 points to 1,426.99. 

Peregrine Metals was the week’s largest percentage gainer and most-traded stock, surging 202% to $2.45 per share on 40 million shares traded. The jump came after U.S. miner Stillwater Mining tabled a US$487.1-million bid for the junior and its early-stage Altar copper-gold project in Argentina. The deal values Peregrine at $3.16 a share, a 400% premium to its closing price on July 8, the last trading day before the offer was announced. Peregrine shareholders would get 0.08136 of a Stillwater share and US$1.35 cash for each share held. The deal is expected to close by the end of September.

Intriguing gold-copper assays from Romania lifted Carpathian Gold‘s shares by 38% to 58¢. The junior released five drill holes and one in fill hole from the Ciresata deposit at its Rovina Valley project. Highlights were: 314 metres at 1.08 grams gold per tonne and 0.20% copper, including 65 metres at 1.49 grams gold and 0.25% copper; and 668 metres of 0.86 gram gold and 0.17% copper, including 198 metres at 1.13 grams gold and 0.17% copper. Along with Ciresata, the project hosts two other gold-copper porphyries. 

Oromin Explorer saw its shares climb 26% to $1.16, as it released more drill results from its Oromin Joint Venture Group gold project in Senegal, West Africa. The drilling tested the down-dip potential of the Golouma gold deposit, as well as lateral and depth expansion at the Kinemba, Sekoto, Saboraya and Koutouniokolla discoveries. 

Northgate Minerals saw 24.1 million shares changing hands as it announced a $409-million all-share offer for Primero Mining, and gained 39¢ to $3.04. Primero shareholders would receive 1.5 Northgate shares for every Primero share held. The deal values Primero shares at $4.215, which is a 13.9% premium to its closing price a day before the offer was made. Northgate shareholders would own 69% of the combined company. Goldcorp, which owns 35.5% of Primero, has agreed to support the arrangement. If the deal goes through, Goldcorp would receive 46.7 million, or 11%, of Northgate’s shares. The company gained $3.16 to close at $51.59 on 13 million shares traded. 

Goldcorp evacuated 380 employees at its Musselwhite gold mine due to forest fires in northwestern Ontario. 

TSX most active issues

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(000s)HIGHLOWCLOSECHANGE

Peregrine MtlsPGM400502.942.402.45+1.64 

Kinross GoldK2781316.6415.6516.56+0.54 

Eastern PlatinELR277310.940.820.90-0.01 

Northgate MnlsNGX241303.052.613.04+0.39 

Avion GoldAVR201562.552.102.25+0.07 

Eldorado GoldELD1831917.2515.2017.01+1.63 

Lundin MngLUN163797.346.857.00-0.22 

Yamana GoldYRI1572112.7511.9012.47+0.57 

B2GoldBTO142143.453.043.38+0.07 

Uranium OneUUU138963.192.793.16+0.25

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Peregrine MtlsPGM400502.942.402.45+202.4 

Carpathian GldCPN64370.590.420.58+38.1 

Homeland EnrgyHEG29290.090.060.08+33.3 

Oromin ExplOLE55371.190.931.16+26.0 

Frontier Rr ErFRO4892.501.832.30+24.3 

Gold-Ore ResGOZ5370.900.720.90+23.2 

Golden StarGSC40732.852.312.84+21.8 

Primero MngP83294.493.464.43+21.7 

Red Cresc ResRCB990.480.420.48+20.0 

Dalradian ResDNA10141.961.601.96+19.5 

Yorbeau Res AYRBA1860.320.260.26-16.1 

First UraniumFIU17220.510.410.42-16.0 

Polar Star MngPSR1150.740.650.65-15.5 

Strathmore MnlSTM5400.690.570.58-14.7 

Orvana MnrlsORV21452.762.232.31-14.4 

OrocobreORL882.111.811.85-14.3 

Magma MetalsMMW1730.280.220.24-14.2 

Tiger ResTGS1170.550.480.50-12.2 

Extorre Gold MXG268914.8411.4511.93-12.0 

Spur VenturesSVU2240.420.370.37-11.9

TSX greatest value change

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VOLUMECLOSECHANGE

Royal GoldRGL2707261.44+3.52 

GoldcorpG1302525451.59+3.16 

Coeur d AleneCDM32355526.78+2.15 

Silver WheatonSLW980269136.98+2.11 

Franco-NevadaFNV355469937.85+2.01 

Alamos GoldAGI264320217.94+1.92 

Newmont MngNMC2633354.70+1.78 

Barrick GoldABX1031319946.11+1.72 

Silver Std ResSSO84771827.77+1.66 

Centerra GoldCG236621918.41+1.66 

Extorre Gold MXG268868811.93-1.64 

Cameco CorpCCO451728924.13-1.30 

First QuantumFM1732264135.00-1.20 

AgriumAGU336498185.24-1.13 

Europn GoldfldEGU889245612.55-1.10 

Horizns G BearHGD29542279.47-0.97 

HudBay MinlsHBM256237014.50-0.49 

Thompson CreekTCM24501149.45-0.44 

Potash Cp SaskPOT904779356.38-0.44 

Orvana MnrlsORV21453302.31-0.39

TSX Venture Exchange

The S&P Venture Exchange Index climbed again during the July 11-15 period, up 22.57 points to cross the 2,000-point threshold for the first time in over a month, and ending at 2,007.38 points. Volume averaged 91.7 million shares traded daily.

The clear standout was Prophecy Platinum, which topped all three indicators after releasing a resource estimate on its Wellgreen polymetallic project in the Yukon. The company was the most traded, with 11.8 million shares passing hands. It also gained the most by climbing $1.61, and had the highest rise in percentage with a 264% increase to end at $2.22. The resource established a 14.3-million indicated resource at 0.99 gram platinum per tonne, 0.74 gram palladium and 0.52 gram gold, plus 0.69% nickel, 0.62% copper and 0.05% cobalt, with a combined inferred resource of 289 million tonnes at 1.18 grams platinum, palladium and gold combined, 0.38% nickel, 0.35% copper and 0.03% cobalt.

Prophecy Coal also saw a big jump in activity and share price, as a 45% share owner of Prophecy Platinum. The coal division spun out its Canadian nickel assets earlier this year, as part of a tie-up with Pacific Coast Nickel, with Prophecy Platinum as the result. Prophecy Coal was up 16¢ to 72¢, on 9.3 million shares traded. The company has been working for months to arrange an offtake agreement for its Mongolian coal project, but faces delay as it secures rail and port allocation at Russia’s eastern ports.

Trelawney Mining and Exploration gained 83¢ to end at $5.70, after making an all-share bid for Augen Gold, which controls 237 sq. km of mining claims that are next to Trelawney’s Côté Lake deposit. Trelawney is offering 0.066 of a share for each Augen share, valuing the smaller company at $55 million and giving its shareholders a potential 40% premium. Augen’s share price gained 11¢ to end at 38¢.

In Yukon news, Strategic Metals climbed 64¢ to $4.24 after releasing an update on its Midas Touch and Silver Range projects. The company reported the holes drilled so far in its 11-hole program at the Crag property had hit orpiment-realgar, wh
ich often occurs in gold mines on the Carlin trend, and are key indicators on Atac Resources‘ Osiris project 40 km east. Strategic Metals is also drilling for Carlin-type deposits at its Rod target, and continues work on its Silver Range project. 

Copper Fox Metals dropped 54¢ to close at $1.59 on 10.4 million shares, after releasing an updated resource for its Schaft Creek deposit in northwest B.C. The resource established just over a billion measured and indicated tonnes at 0.27% copper, 0.017% molybdenum and 0.18 gram gold. The inferred resource was 284 million tonnes at 0.24% copper, 0.011% molybdenum and 0.39 gram gold.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Pac Coast NiklNKL117842.700.592.22+1.61 

Allana ResAAA116361.451.261.38-0.07 

Goldex ResGDX115150.100.070.09+0.02 

Sandstorm Mt&ESND105210.610.510.55-0.02 

Copper Fox MtlCUU104232.021.451.59-0.54 

Sandstorm ResSSL93431.531.351.52+0.17 

Prophecy ResPCY93090.800.500.72+0.16 

St Eugene MngSEM80690.130.100.12+0.04 

Dacha Str MtlsDSM76571.201.031.10+0.07 

Iberian MnlsIZN75160.910.810.91+0.03

TSX-V greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Pac Coast NiklNKL117842.700.592.22+263.9 

New NadinaNNA1480.180.120.18+157.1 

Sanatana DiamSTA21280.570.290.57+90.0 

Golconda ResGA10160.070.040.05+66.6 

Aldershot ResALZ11150.050.040.05+66.6 

Lithic ResLTH3690.220.120.20+53.8 

Carlin GoldCGD10620.280.160.23+53.3 

GGL ResGGL4380.060.050.06+50.0 

St Eugene MngSEM80690.130.100.12+50.0 

Kermode ResKLM2740.100.060.10+42.8 

Groundstar ResGSA13590.250.160.17-41.3 

SG Spirit GoldSG2190.160.100.15-37.5 

Bolero ResBRU26290.510.310.35-36.3 

Deloro ResDLL550.120.100.10-28.5 

Ringbolt VentRBV3140.280.180.20-28.5 

Fox ResFAX100.400.400.40-27.2 

Copper Fox MtlCUU104232.021.451.59-25.3 

Cons FortressCFR24580.140.090.09-25.0 

Galena CapitalFYI20890.040.030.03-25.0 

Parallel ResPAL400.130.090.09-25.0

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Pac Coast NiklNKL117843272.22+1.61 

Trelawney M&ExTRR32151285.70+0.83 

Rainy River RsRR170936611.29+0.82 

Chesapeake GldCKG6239111.75+0.65 

Strategic MetlSMD7475214.24+0.64 

Batero GoldBAT8586673.45+0.62 

Midway GoldMDW9147552.58+0.61 

Atac ResATC9693329.08+0.38 

Hana MngHMG9766672.18+0.33 

Newstrike CapNES16210312.67+0.30 

Quest Rare MnlQRM12874625.20-0.65 

Copper Fox MtlCUU104227591.59-0.54 

Orbite Expl AORTA53056583.29-0.41 

Tasman MetalsTSM4726134.22-0.40 

Callinan MnsCAA1825803.49-0.32 

Macarthur MnlMMS2264092.40-0.25 

Anfield NickelANF891544.65-0.25 

Cayden ResCYD2310752.61-0.24 

Geomega ResGMA696203.05-0.24 

Bolero ResBRU26286780.35-0.20

U.S. markets

While fears of an American default amidst a political deadlock on raising the debt ceiling was good news for gold, which hit new highs, the effect on U.S. markets was less positive. All three major indexes fell over the July 11-15 period, with the Dow Jones Industrial Average down 176 points to 12,479.73, the S&P 500 Index falling 27 points to 1,316.14 and the NASDAQ Composite Index shedding 39 points to 2,789.80. 

Not surprisingly, the companies spared from the sell-off were associated with gold, following Federal Reserve Chairman Ben Bernanke’s hint that a third round of quantitative easing could be in the cards if growth remained sluggish. 

Chief among the stocks to benefit from gold’s lustre was Midway Gold, after it announced results calculated from data provided by Barrick Gold. Barrick is earning into Midway’s Spring Valley project in Nevada. Highlights included gold intercepts of 166 metres at 1.48 grams per tonne gold, and 218 metres at 2.7 grams gold. The news sent Midway shares up 31% to $2.69. 

Samex Mining renewed drilling at its Los Zorros project in Chile, sending the company’s shares 20% higher to $1.42. The company is exploring a district of widespread occurrences of gold, silver, copper and barite.

Oromin Explorations enjoyed continued drilling success at its OJVG gold project in Senegal, sending the company’s shares up 18% to $1.17. Highlights included 6.64 grams gold over 13 metres and 4.61 grams over 10 metres. The Golouma deposit at the project hosts an indicated resource of 11.1 million tonnes, grading 2.94 grams gold for 1.05 million oz. gold.

After digesting Stillwater Mining‘s $487.1-million offer for Peregrine Metals and its Altar copper-gold deposit in Argentina, investors began selling heavily. Stillwater shares were off 27% to $17.28. Peregrine shareholders would receive 0.08136 of a Stillwater share and US$1.35 in cash for each share held. Based on Stillwater’s closing price on July 8 of US$23.72, the deal values Peregrine at $3.16 per share – a 400% premium to Peregrine’s closing price of 81¢ on July 8.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA14131516.1615.3715.48-0.90

Freeport McMo*FCX8591655.8953.0255.34+0.47

Silver Wheatn*SLW5934239.4334.5438.80+2.55

Stillwater Mg*SWC5272322.8316.3517.28-6.44

Hecla Mining*HL463208.557.488.19+0.19

Barrick Gold*ABX4252249.1045.6048.31+2.07

Goldcorp*GG4184955.1850.1654.13+3.67

Kinross Gold*KGC4044617.4016.1517.40+0.73

Mosaic*MOS3569368.8965.5566.75-3.83

Potash C Sask*POT3368759.5757.0159.20+0.08

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Cornerstone C*CTNXF1930.330.200.32+52.3 

Silver Dragon*SDRG20320.190.100.16+45.4 

Radius Gold*RDUFF2170.890.560.89+39.0 

Midway Gold*MDW14932.702.052.69+30.5 

Golden Star*GSS283983.002.382.98+23.1 

Samex Mng*SMXMF10911.451.101.42+20.3 

Cream Mnrls*CRMXF1460.260.200.25+19.0 

Oromin Expl*OLEPF3121.210.961.17+18.1 

Tombstone Exp*TMBXF6920.080.050.08+14.2 

Northgate Mnl*NXG262533.192.683.14+13.7 

Lake Vict Mng*LVCA910.300.190.19-36.6 

Stillwater Mg*SWC5272322.8316.3517.28-27.1 

Linux Gold*LNXGF820.050.040.04-20.0 

El Capitan Pr*ECPN12720.850.700.72-14.2 

Li3 Energy*LIEG7530.220.170.18-14.2 

America West*AWSR1221.120.991.00-13.0 

Douglas Lk Ml*DLKM1890.450.400.41-10.8 

China Shen Zh*SHZ1923.232.902.90-10.7 

DRDGOLD*DROOY7135.104.434.53-9.0 

US Energy*USEG8204.534.104.18-8.5

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Randgold Res*GOLD407886888.00+4.24 

Royal Gold*RGLD334571664.41+4.19 

Goldcorp*GG4184889354.13+3.67 

Buenaventura*BVN763543940.32+3.16 

Newmont Mng*NEM3056004357.38+2.62 

Silver Wheatn*SLW5934159038.80+2.55 

Coeur d Alene*CDE1614900728.08+2.46 

Agnico-Eagle*AEM916764965.05+2.15 

Consol Energy*CNX1953579452.34+2.09 

Barrick Gold*ABX42
52202148.31+2.07 

Stillwater Mg*SWC5272328017.28-6.44 

BHP Billi-BHP*BHP1515710491.08-4.76 

BHP Billi-BBL*BBL867283975.25-4.55 

Mosaic*MOS3569274966.75-3.83 

Compass Mnls*CMP36884584.20-3.58 

Alliance Rs P*ARLP38069075.53-3.42 

Cabot Corp*CBT175729340.56-1.76 

Cameco Corp*CCJ909564025.34-1.13 

Alcoa*AA14131486715.48-0.90 

MDU Res*MDU418287622.07-0.88