Market news

Toronto Stock Exchange

With earnings season right around the corner, the TSX Composite Index jumped 203 points to 13,494.63 for the July 18–22 period. The move came as investors anticipated positive numbers from the resource sector, because of strong commodity prices overall. 

The Capped Metals & Mining Index was up 22 points to 1.447.77 points. The rise in the shares of diversified miners came with prices for aluminum, nickel, tin and zinc all higher, lead prices lower and copper prices flat at US$4.39 per lb. 

The TSX 60 index rose 11 points on the week to close at 769.

Continued grappling between Democrats and Republicans over a deal to raise the debt ceiling in the U.S. helped gold gain US$5, breaking through the US$1,600 mark and finishing the period at US$1,601.50. Meanwhile, the Global Gold Index diminished one point, to 397.11 points for the period. 

AngloGold Ashanti’s $28-million investment in First Uranium helped lift the uranium and gold miner’s shares by 40%. Trading at 59¢, they were the period’s largest gainer by percentage points. AngloGold bought a nearly 20% interest in the company from South-African platinum miner Village Main Reef, with lock-up and first refusal privileges on Village’s remaining 6% stake in First Uranium. 

Lake Shore Gold fell 28% to $2.39, following second quarter production results. The company said that production for the quarter was lower than expected because of a change in the mining sequence at its Timmins mine. The change came after backfill delays caused lower-grade sources to be mined earlier than expected. The lower-grade material brought overall head grade at 60% of what was planned for the quarter. 

Lithium and potash junior Orocobre jumped 19% to $2.20 for the period, after announcing initial drilling completion at its Salinas Grandes project in Argentina. The program confirmed the presence of two brine bodies containing what the company calls “very attractive chemistry,” thanks to low magnesium-to-lithium ratios and high potassium-to-lithium ratios. The company suggests that high recoveries of potassium and lithium could come from a simple and low-cost mine. 

After explorer Nautilus Minerals was awarded tenements in the Eastern Pacific, the company’s shares lifted 20% to $3.17. The company has acquired one of the first granted exploration licenses in the Clarion Clipperton zone (CCZ), which lies in international waters between Hawaii and Mexico. In the 1980s, CCZ discovered golf
ball-sized polymetallic nodules on the seafloor rich in copper, nickel, manganese and cobalt, in water depths starting at 4,500 metres.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

IverniaIVW623900.180.140.16-0.01 

Lake Shore GldLSG579833.491.982.39-0.94 

Eastern PlatinELR453301.030.900.99+0.09 

Lundin MngLUN345077.336.726.86-0.14 

Yamana GoldYRI2185512.9612.0312.72+0.25 

Kinross GoldK1977917.0016.2916.69+0.13 

Northgate MnlsNGX169303.283.053.23+0.19 

Grande Cache CGCE155489.508.939.29+0.29 

Uranium OneUUU134623.573.123.51+0.35 

Eldorado GoldELD1318117.7216.9317.49+0.48

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

First UraniumFIU55030.600.380.59+40.4 

Diamond FieldsDFI4430.410.280.38+31.0 

Silver Bear RsSBR21411.231.001.22+27.0 

Inspiration MgISM5420.250.190.23+21.0 

UEX CorpUEX14031.200.961.19+20.2 

Nautilus MinlsNUS8133.172.653.17+19.6 

OrocobreORL1712.231.932.20+18.9 

Spur VenturesSVU1980.440.370.44+18.9 

Talison LithmTLH4925.064.204.99+18.5 

Cluff GoldCFG171.601.471.60+18.5 

Lake Shore GldLSG579833.491.982.39-28.2 

Aeroquest IntlAQL4150.570.460.47-17.5 

Avnel GoldAVK2750.550.460.47-17.5 

Grandview GldGVX550.070.050.05-16.6 

Silvermex ResSLX31770.710.610.61-14.0 

Shore GoldSGF25390.750.550.60-13.0 

Erdene Res DevERD2060.950.830.84-11.5 

Homeland EnrgyHEG19100.080.060.08-11.1 

Black IronBKI961.100.991.00-10.7 

North Am En PaNOA1396.886.196.23-9.9

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

First QuantumFM1195862139.17+4.17 

AgriumAGU299125987.92+2.68 

First MajesticFR603727623.64+2.18 

Potash Cp SaskPOT783011958.50+2.12 

Allied NevadaANV69098539.03+1.93 

Imperial MetalIII42272123.87+1.82 

Cameco CorpCCO718060525.93+1.80 

Franco-NevadaFNV295353839.54+1.69 

Barrick GoldABX1115847047.62+1.51 

Extorre Gold MXG128576813.32+1.39 

Agnico-EagleAEM342909960.12-1.91 

Labdr I-Ore RoLIF_U96490537.24-1.27 

Lake Shore GldLSG579827102.39-0.94 

Golden MnlsAUM1699016.93-0.86 

North Am En PaNOA1390476.23-0.69 

Augusta ResAZC11863524.75-0.46 

Osisko MngOSK760101714.39-0.45 

HudBay MinlsHBM310958314.07-0.43 

Tahoe ResTHO103693519.36-0.34 

Gabriel ResGBU13483897.69-0.30

TSX VENTURE EXCHANGE

The S&P/TSX Venture Exchange Index rose for the third week in a row during the July 18-22 period, gaining 52.22 points to close at 2,059.60. This year’s market downturn appears to have bottomed out around the last week of June, a few weeks earlier than the market correction of 2010, which reached its lowest point during the first two weeks of July. Volume averaged 95.1 million shares traded daily.

Leading the exchange by trading volume and percentage gain was BE Resources, after it released high-grade rare earth
element assays from its Warm Springs
beryllium project in New Mexico. The low-profile junior saw its shares soar on the Friday to 75¢ from 8.5¢, or 782%,
on 31.8 million shares traded. The excitement proved short-lived, however, as the company had mistakenly overstated its results by a factor of 10. All trades were cancelled.

Newly formed Prophecy Platinum was the trading period’s biggest value gainer, rising $3.10 to close at $5.32. The stock is up from 74¢ on July 14 after Prophecy released a resource estimate for its Wellgreen polymetallic project in the Yukon. That estimate pegged Wellgreen’s indicated resources at 14.3 million indicated tonnes grading 0.99 gram platinum per tonne, 0.74 gram palladium per tonne and 0.52 gram gold per tonne, plus 0.69% nickel, 0.62% copper and 0.05% cobalt, along with inferred resources of 289 million tonnes at 1.18 grams platinum, palladium and gold combined, 0.38% nickel, 0.35% copper and 0.03% cobalt.

Vancouver-based Pacific Booker
Minerals climbed $1.07 to $8.59 on light volume after advancements at its Morrison copper-gold project in central B.C. The company’s application for environmental approval is now open for public review. Pacific Booker hired environmental consultant Rescan Environmental Services in May 2006 to complete the application, which was submitted in 2009, and rejected because of “significant deficiencies.” The two parties are now suing each other because Pacific Booker refused to pay for some of Rescan’s services, citing professional negligence and breach of
contract. 

Toronto-based junior Atlanta Gold traded heavily this week, on its way up
to 7.5¢ from 6.5¢. The company has released an updated resource estimate for its Atlanta gold-silver project in the historic Middle Boise mining district of Idaho. Indicated
resources rose 54% to 719,000 gold-equivalent oz., contained in 6.82 million tonnes grading 3.45 grams gold per tonne and 9.04 grams silver. The company has arranged a $2.5 million financing to help pay for its ongoing three-rig, 18,300-metre drill program at the
project.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

BE ResBER318820.770.080.75+0.66 

Pac Coast NiklNKL195065.632.265.32+3.10 

Galway ResGWY174021.240.881.23+0.33 

Prophecy ResPCY172210.990.630.96+0.24 

Allana ResAAA133201.811.341.72+0.34 

Sandstorm ResSSL128901.671.421.52-0.00 

Altoro GoldATG105610.110.060.08+0.01 

Orbite Expl AORTA83133.743.063.61+0.32 

Great WesternGWG71410.970.780.95+0.14 

Copper Fox MtlCUU69952.031.451.99+0.40BE ResBER318820.770.080.75+0.66 

Pac Coast NiklNKL195065.632.265.32+3.10 

Galway ResGWY174021.240.881.23+0.33 

Prophecy ResPCY172210.990.630.96+0.24 

Allana ResAAA133201.811.341.72+0.34 

Sandstorm ResSSL128901.671.421.52-0.00 

Altoro GoldATG105610.110.060.08+0.01 

Orbite Expl AORTA83133.743.063.61+0.32 

Great WesternGWG71410.970.780.95+0.14 

Copper Fox MtlCUU69952.031.451.99+0.40

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

BE ResBER318820.770.080.75+733.3 

Pac Coast NiklNKL195065.632.265.32+139.6 

WCB ResWCB2350.750.260.41+70.8 

Columbia YukonCYU1870.170.110.17+70.0 

Peat ResPET4270.160.090.14+55.5 

TiexTIX1870.170.120.17+54.5 

Constant Mtl RCEM43690.280.170.24+50.0 

Meritus MnlsMER28540.080.050.06+50.0 

Pro-Or Mng ResPOI23120.380.220.31+47.6 

Grande PortageGPG20720.250.180.25+47.0 

Spruce Ridge RSHL590.250.190.19-32.1 

Jaxon MnlsJAX4370.160.100.10-28.5 

Midlands MinlsMEX21650.130.100.10-28.5 

Volcanic MtlsVOL1480.190.150.15-28.5 

Riva GoldRIV5521.260.770.85-26.0 

Actus MnlsAAC3320.070.060.06-25.0 

Goldbank MngGLB360.250.160.16-23.8 

Colstar VentCTR410.250.220.22-21.4 

Cannon Pnt ResCNP1480.120.100.11-21.4 

Amador GoldAGX1760.140.110.11-21.4

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Pac Coast NiklNKL195064475.32+3.10 

Bear Creek MngBCM16090085.64+1.62 

Pac Booker MinBKM343048.59+1.07 

BE ResBER318820580.75+0.66 

Atacama Pac GdATM13216005.65+0.65 

Loncor ResLN1364003.10+0.61 

Quest Rare MnlQRM8350915.79+0.59 

Tasman MetalsTSM4496314.77+0.55 

Alderon ResADV23980923.76+0.46 

Canaco ResCAN24632313.96+0.45 

Chesapeake GldCKG3877611.14-0.61 

Trelawney M&ExTRR25389215.18-0.52 

Riva GoldRIV5518160.85-0.30 

Argentex MngATX5062061.02-0.24 

Orko SilverOK9612772.96-0.22 

Midway GoldMDW2188992.37-0.21 

Fortress MnlsFST427605.40-0.20 

Geomega ResGMA1155702.85-0.20 

Dia Bras ExplDIB586073.00-0.19 

Lumina CopperLCC661836.95-0.18

U.S. markets

As debate in the U.S. Congress over raising the government’s US$14.3-trillion debt ceiling unsettled markets during the July 18-22 trading week, there was good news across the Atlantic, with Eurozone countries and the International Monetary Fund giving Greece a second bailout package to ease fears of contagion. The Dow Jones Industrial Average climbed 201.43 points, or 1.6%, to close at 12,681.16, the S&P 500 Index advanced 28.8 points, or 2.2%, to 1,345.02 and the Nasdaq Composite gained 69.03 points, or 2.5%, to finish at 2,858.83. Uncertainty continued to spur safe-haven buying of precious metals, and the Philadelphia Gold and Silver Index jumped 3.41 points, or 1.6%, to 220.36. The price of gold closed the week at US$1,600.30 per oz. 

Stellar fourth-quarter net earnings of US$649 million, or US$1.45 per diluted share, up from US$396 million, or US$0.89 per diluted share in the year-earlier quarter, explained the jump in Mosaic‘s share price. The fertilizer giant’s shares were the fifth most actively traded of the week, rising US$6.13 to close at US$72.88 apiece. Mosaic’s net sales in the fourth quarter of
fiscal year 2011 were US$2.9 billion, showing a 54% increase from US$1.9 billion in the same period last year. Fourth quarter operating earnings were US$825 million, compared to US$548 million a year ago. Agrium gained US$3.18 to US$92.56 per share, while Potash Corporation of Saskatchewan added US$2.44 to US$61.64, both on no news.

On the precious metals front, Randgold Resources climbed US$2.63 to US$90.63 per share, on no news, while Allied Nevada Gold advanced US$2.23 to US$40.96. On July 19, Allied Nevada released drill results from its wholly owned Hasbrouck project, where recent assay results indicate two new zones of higher-grade gold and silver mineralization east of its Saddle zone. Discovery of the Franco zone included 97 metres of 2.3 grams gold per tonne and 34 grams silver per tonne. The Hasbrouck property is 80 km south of the Round Mountain open-pit mine, a joint-venture between Kinross Gold and Barrick Gold.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA9498215.8515.1015.83+0.35 

Freeport McMo*FCX7147956.6854.6355.67+0.33 

Silver Wheatn*SLW4915140.0837.3539.51+0.71 

Barrick Gold*ABX4376750.3848.0250.25+1.94 

Mosaic*MOS4035774.0065.3672.88+6.13 

Kinross Gold*KGC3851517.8217.2217.58+0.18 

Hecla Mining*HL361578.508.088.34+0.15 

Goldcorp*GG3590755.3952.8654.23+0.10 

Potash C Sask*POT3037362.0457.9461.64+2.44 

Arch Coal*ACI2876128.7626.0228.61+2.11

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Linux Gold*LNXGF2420.050.040.05+25.0 

Quaterra Res*QMM2531.461.201.46+18.7 

Banro Res*BAA20725.023.964.64+16.8 

Crosshair E&M*CXZ1940.850.690.84+16.6 

Anooraq Res*ANO16130.780.650.78+14.7 

Petaquilla Mn*PTQMF9280.790.700.78+13.0 

Samex Mng*SMXMF6651.601.351.59+12.7 

Denison Mines*DNN8012.171.832.15+12.5 

Bullion Monar*BULM1521.301.101.28+12.2 

Cardero Res*CDY9311.451.251.40+11.1 

Lake Vict Mng*LVCA5040.300.130.13-31.5 

Silver Dragon*SDRG14880.170.120.13-23.5 

Cream Mnrls*CRMXF3160.230.200.22-12.0 

North Am En P*NOA4957.206.526.54-9.6 

Alberta Star *ASXSF200.320.290.29-9.3 

Caledonia Mng*CALVF11770.120.090.10-9.0 

Mesabi Trust*MSB69033.3030.2531.22-8.8 

Augusta Res*AZC4295.504.995.00-8.4 

Radius Gold*RDUFF2730.930.790.82-7.8 

PolyMet Mng*PLM8681.901.711.72-7.5

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Walter Energy*WLT918587131.71+12.07 

Mosaic*MOS4035713872.88+6.13 

Alliance Rs P*ARLP33158979.45+3.92 

Agrium*AGU176911692.56+3.18 

BHP Billi-BHP*BHP1486830094.13+3.05 

Randgold Res*GOLD244381190.63+2.63 

Consol Energy*CNX1961746954.82+2.48 

Potash C Sask*POT3037281261.64+2.44 

Allied Neva
da*ANV68102640.96+2.23 

Arch Coal*ACI2876130128.61+2.11 

Mesabi Trust*MSB68977631.22-3.04 

Agnico-Eagle*AEM869839363.35-1.70 

North Am En P*NOA4945896.54-0.70 

Stillwater Mg*SWC2301655416.73-0.55 

Augusta Res*AZC4291685.00-0.46 

HudBay Mnls*HBM5534214.83-0.35 

OM Group*OMG104881838.59-0.32 

SinoCoking Cl*SCOK5175814.84-0.26 

Paramount Gld*PZG48339493.13-0.21 

Thompson Crk*TC26146569.71-0.21