Toronto Stock Exchange
The TSX Composite Index gained 3% during the Aug. 8-12 week to close up 380.03 points to 12,542.20 as investors digested mixed data from the U.S.
The U.S., which recently had its triple-A rating stripped by Standard and Poor’s, announced strong retail sales but a lower consumer sentiment index. A preliminary reading showed the index dropped from 63.7 in July to 54.9, its lowest level since May 1980. The reading was taken before S&P lowered the country’s long-term credit rating on Aug. 5.
The Global Gold Index moved up 29.79 points to 400.73, as the price of gold rose US$82.90 to close in New York at US$1,746.30 per oz.
As a result, gold stocks saw the most value added during the week on the back of soaring gold prices.
Agnico-Eagle Mines advanced $1.77 to $56.99; Allied Nevada Gold was up $1.33 to $35.92, while Barrick Gold gained $1.03 to $45.92, all on no other news.
The Capped Diversified Metals & Mining Index was also up 19.71 points to 1,220.79.
The biggest percent gainer was Pacific North West Capital, moving 14.8% to 31¢ as it agreed to sell Next Gen Metals its 60% earn-in option interest in Alto Venture‘s Destiny gold project in Quebec. The agreement requires regulatory and shareholder approvals.
Premier Gold Mines‘ shares rose 10.2% to $5.80 after Goldstone Resources‘ shareholders approved Premier’s previously announced acquisition. The two are joint-venture partners at the Hardrock gold project in Ontario. As part of the agreement, Goldstone shareholders will get 0.16 of a Premier share plus 1¢ for each share held, and Premier will receive full control of Hardrock and Goldstone’s other gold properties. Premier currently owns 70% of Hardrock.
Aurizon Mines rose 9.9% after it released mixed news to close at $6.06. On Aug. 9, it reported new drill results from the Fayolle gold deposit in Quebec. Two days later it announced its second-quarter results, along with a delay in completing a feasibility study on the Hosco gold deposit at its Joanna property in northwestern Quebec, due to higher capital and operating costs.
On strong second-quarter results, Alamos Gold gained $1.39 to $18.20 on 1.2 million shares traded. It reported US$15.5 million in profits thanks to high gold prices during the quarter that offset lower production at its Mulatos gold mine in Mexico. The mine produced 36,000 oz. gold, a 6% decrease from the same period last year.
Lundin Mining was the most actively traded stock, with 22.5 million shares changing hands. It gained 92¢ to close at $4.41 on speculation that it may have potential suitors looking to buy it out. BHP Billiton has been suggested as the main shopper.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Lundin MngLUN225654.944.284.41-0.92
Yamana GoldYRI991213.8412.9213.43+0.48
Eastern PlatinELR74170.840.730.81-0.07
Kinross GoldK645515.9015.1315.28-0.08
Barrick GoldABX626047.7745.3445.92+1.03
Teck BTCKB524639.9737.5037.81-3.81
Eldorado GoldELD454818.4717.2317.91+0.96
GoldcorpG450248.6945.8446.31+0.94
Starfield ResSRU44210.050.040.04-0.01
Uranium OneUUU43752.932.572.75-0.23
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Pac NW CapPFN1680.310.260.31+14.8
Premier Gold MPG7386.225.165.80+10.2
Aurizon MinesARZ9056.195.526.06+9.9
Velocity MinlsVLC120.130.100.13+8.3
SemafoSMF25918.197.078.17+8.3
Alamos GoldAGI123118.4317.0818.20+8.2
Nevsun ResNSU8075.634.845.57+8.1
St Andrew GldfSAS470.850.760.83+7.7
Canarc ResCCM610.140.130.14+7.6
B2GoldBTO21333.222.863.16+7.1
MinemakersMAK290.370.350.35-27.0
Emed MiningEMD12330.140.100.11-26.6
Nuinsco ResNWI5340.130.100.10-23.0
OrocobreORL971.581.351.35-21.0
Starfield ResSRU44210.050.040.04-20.0
Mediterrn ResMNR800.170.160.16-20.0
Pac Rim MiningPMU1460.160.130.13-18.7
Rockgate CapRGT6881.361.151.19-18.4
Katanga MngKAT9171.331.071.09-18.0
Minco GoldMMM1051.301.051.05-17.9
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Central Gold-TGTU_U2004166.59+3.62
Agnico-EagleAEM153080856.99+1.77
Alamos GoldAGI123141118.20+1.39
Allied NevadaANV70681235.92+1.33
Barrick GoldABX625964145.92+1.03
Eldorado GoldELD454846517.91+0.96
GoldcorpG450153346.31+0.94
Franco-NevadaFNV115694740.32+0.91
ISh COMEX G TrIGT10146516.60+0.78
Detour GoldDGC113721028.69+0.77
First QuantumFM629826103.64-12.41
AgriumAGU145340474.81-4.27
Teck BTCKB524587537.81-3.81
Potash Cp SaskPOT386283049.11-2.88
Ivanhoe MinesIVN115221119.43-2.49
Coeur d AleneCDM12952622.04-1.95
Labdr I-Ore RoLIF_U19861531.00-1.95
Inmet MiningIMN74264155.81-1.89
Walter EnergyWLT1712869.99-1.72
Karnalyte ResKRN6412410.45-1.63
TSX Venture Exchange
The market rollercoaster continued in the trading period for the S&P/TSX Venture Composite Index. The index plunged 129.21 points on the first day before climbing 135.07 points over the following four days to eke out a gain of 5.86 points, ending at 1,817.36. Volume was in line with recent levels at around 95 million shares traded daily.
Hardly flinching in the recent correction, Papuan Precious Metals climbed 19¢ or 39% to 68¢, having traded as low as 27¢ in early July. The Papua New Guinea-focused company released no news during the period, but in early August it announced a copper discovery at its New Hanover gold-copper project, including a 189-metre interval in hole 7 with visible copper, though assays are pending. Assay results from hole 1 returned 6 metres grading 0.17% copper and 0.31 gram gold from 20 metres depth. Papuan Precious Metals changed its name from Jalna Minerals when it instituted a share rollback last September.
Recently-listed Monster Mining climbed 9¢ to close at 55¢ on light volume. The Yukon-focused company listed in mid-May and has since optioned the Red Ridge polymetallic property south of Whitehorse and started a 1,460-km airborne geophysics program on its 66-sq.-km Keno-Lightning silver-lead-zinc project in the Keno Hill district.
Kaminak Gold‘s share price plunged 45¢ early in the period before rallying 70¢ on impressive drill results and then dipping again, ultimately ending up 8¢ at $3.95. The drill results from the Double Double zone at its Coffee project were some of the best yet released by the company, with a stand-out 4-metre intercept grading 74.9 grams gold starting at 105 metres downhole. Other results included: 2 metres of 25.4 grams gold, 3 metres averaging 12.15 grams gold and 2 metres carrying 14.35 grams gold.
Atlanta Gold had a burst of activity with just under 10 million shares traded as the company managed to end up half a cent at 11.5¢. The activity follows a 4¢ gain on Aug. 5 that saw 5.6 million shares traded on no news. In the most recen
t period, Atlanta announced it had closed a property deal for a 2.3-hectare property just outside of Boise, Idaho, that will serve as infrastructure and service space for its nearby Atlanta project. Atlanta Gold also closed a second and third tranche of financing, bringing total gross proceeds in the three tranches to $2.5 million by offering 35.7 million units at 7¢.
Renaissance Gold, created last fall with AuEx Venture’s properties not acquired by Fronteer Gold, saw some of the biggest gains, climbing 14¢ to close at $1.79. The only news out recently for the company was the appointment of Tim Janke to the company’s board of directors. In late July the company optioned its flagship Spruce Mountain project in Elko County to Sumitomo.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Orbite Expl AORTA39402.692.162.20-0.71
Altoro GoldATG39230.130.100.11-0.01
Copper Fox MtlCUU22631.501.281.30-0.26
Allana ResAAA22461.241.141.16-0.16
Sandstorm ResSSL22061.491.381.40-0.04
Great WesternGWG19650.740.680.69-0.11
Aurcana CorpAUN14090.660.590.65-0.03
Goldex ResGDX13490.080.060.070.00
Amanta ResAMH12120.080.060.07+0.01
Sandstorm Mt&ESND11570.500.460.46-0.04
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Tres-Or ResTRS150.090.080.09+28.5
Acrex VentAKV4600.050.050.05+25.0
Dundee MinesDUN1310.050.050.05+25.0
Papuan Prec MtPAU5800.640.490.60+22.4
Canuc ResCDA250.170.140.17+21.4
Volcanic MtlsVOL150.170.170.17+21.4
Kings Bay GoldKBG2140.060.050.06+20.0
Monster MngMAN820.540.440.54+17.3
Amanta ResAMH12120.080.060.07+16.6
Lomiko MtlsLMR780.070.060.07+16.6
Afferro MngAFF151.060.700.70-36.3
Silver Grail RSVG300.200.140.17-34.6
Romulus ResROM200.600.400.40-33.3
Sienna GoldSGP4410.310.200.22-29.0
Cascadia ResCCR150.110.100.10-28.5
Trijet MiningTJT200.080.050.05-28.5
NuLegacy GoldNUG130.170.150.15-28.5
Colombian MinsCMJ1780.680.480.49-27.9
North Am TungNTC5440.340.260.26-25.7
Messina MinlsMMI3760.110.080.09-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Renaissnc GoldREN795901.79+0.14
Prosperity GdfPPG6467300.85+0.12
Gold CanyonGCU1872532.25+0.12
Papuan Prec MtPAU5803120.60+0.11
Bralorne GoldBPM172001.15+0.11
Timberline ResTBR104000.77+0.09
Monster MngMAN821500.54+0.08
Minaurum GoldMGG102000.60+0.08
Grizzly DiscvrGZD685000.62+0.07
NorthquestNQ500000.60+0.05
Atac ResATC7752437.42-0.73
Orbite Expl AORTA39399782.20-0.71
Mirasol ResMRZ1300444.40-0.70
Lumina CopperLCC741665.90-0.70
Great Quest MeGQ1028252.67-0.67
Canaco ResCAN3882042.75-0.53
Strategic MetlSMD9395952.50-0.50
Atacama Pac GdATM2115004.65-0.50
Tasman MetalsTSM3013263.09-0.45
Alderon ResADV6170512.68-0.42
U.S. Markets
It was one of the most volatile weeks in Wall Street history with the Dow Jones Industrial Average and the S&P 500 Index swinging wildly between Monday and Wednesday before ending higher for two days in a row on Thursday and Friday. For the week, the Dow fell 1.5% or 175.59 points to finish at 11,269.02 while the S&P 500 lost 1.72% or 20.57 points to 1,178.81. The Philadelphia Gold and Silver Index rose 5.35% or 10.49 points to 206.55.
For the second week running Randgold Resources topped the list of value gains, up US$3.95 to close at US$98.43, on no news.
Shares of New Gold rose 32¢ to US$10.28 following results from twelve drill holes at its Blackwater project in British Columbia. Intercepts included 278 metres of 2.78 grams gold per tonne, 150 metres of 1.41 grams gold and 35 metres of 2.37 grams gold. New Gold acquired the project in June and plans to drill 40,000 to 50,000 metres, or about 100 holes, in the second half of this year. New Gold’s exploration program will target both the 100%-owned southern portion of the project and the 75%-owned northern portion, where Silver Quest Resources owns the remaining 25%.
A strong second-quarter helped propel shares of AuRico Gold up 28¢ to US$11.92. Operating cash flow in the second quarter increased 247%, net free cash flow jumped 261%, and margins reached a record 75%, the company reported on Aug. 11. AuRico, which reported cash costs of US$384 per gold-equivalent ounce (a 26% improvement over 2010), also said that it has increased its production guidance for the year to between 175,000 and 195,000 oz. gold and 4.95 million to 5.5 million oz. silver.
The second quarter was the first full quarter of production at Nevsun Resources‘ Bisha mine in Eritrea. Production reached 93,000 oz. gold with an average realized price of US$1,510 per oz., and cash costs of US$301 per oz. The company posted revenues of US$135 million, and its share price rose US28¢ to US$5.57. Bisha is expected to produce more than 1.14 million oz. gold, 11.9 million oz. silver, 821 million lbs. copper, and over 1 billion lbs. zinc during its initially estimated 13-year mine life.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA5878312.3911.2711.33-1.46
Freeport McMo*FCX3291445.0241.2041.89-4.10
Alpha Nat Res*ANR2196031.2026.0526.34-5.97
Barrick Gold*ABX1756948.3145.9146.14+0.28
Newmont Mng*NEM1674557.3654.0654.13-0.28
Hecla Mining*HL166647.246.626.66-0.50
Potash C Sask*POT1601151.8848.9349.31-3.78
Mosaic*MOS1486861.8155.7057.51-6.08
Vale*VALE1481026.6424.7824.98-3.00
Arch Coal*ACI1478320.4518.1318.14-3.15
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Infrastrc Mat*IFAM500.080.080.08+33.3
El Capitan Pr*ECPN12770.740.490.61+29.7
Lake Vict Mng*LVCA460.160.080.14+27.2
Aurizon Mines*AZK13076.255.586.07+7.6
Timberline Rs*TLR3560.790.690.72+5.8
Cream Mnrls*CRMXF2080.190.160.19+5.5
Nevsun Res*NSU8095.694.935.57+5.2
Randgold Res*GOLD2385103.6195.6198.43+4.1
New Gold*NGD555110.529.8510.28+3.2
Eldorado Gold*EGO170018.6617.5117.88+3.2
Linux Gold*LNXGF1330.040.040.04-20.0
Starfield Res*SRFDF75640.050.040.04-20.0
Mesabi Trust*MSB44325.4720.2621.46-19.8
Alpha Nat Res*ANR2196031.2026.0526.34-18.4
Rare Elemt Re*REE25238.087.357.36-18.4
Uranerz Energ*URZ15582.381.971.97-18.2
Minco Gold*MGH7841.321.051.08-17.5
North Am Pall*PAL73493.412.672.94-16.9
Paramount Gld*PZG29532.452.002.07-15.8
Uranium Res*URRE27311.090.980.98-15.5
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Randgold Res*GOLD238459198.43+3.95
Agnico-Eagle*AEM545797757.15+0.80
Eldorado Gold*EGO169951817.88+0.56
Allied Nevada*ANV29240135.82+0.46
Aurizon Mines*AZK13068406.07+0.43
Buenaventura*BVN198551939.84+0.42
New Gold*NGD555120310.28+0.32
AuRico Gold*AUQ65530811.92+0.28
Barrick Gold*ABX1756878146.14+0.28
Nevsun Res*NSU8090555.57+0.28
Cliffs Nat Rs*CLF607884967.85-8.61
BHP Billi-BHP*BHP862152371.88-7.26
BHP Billi-BBL*BBL435421757.61-6.46
Alliance Rs P*ARLP31860462.95-6.39
Mosaic*MOS1486841657.51-6.08
Alpha Nat Res*ANR2196040026.34-5.97
Agrium*AGU81357775.21-5.57
Mesabi Trust*MSB44318721.46-5.30
Soc Quim&M Ch*SQM141832451.73-5.29
Peabody Enrgy*BTU1171801441.96-4.91
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