Toronto Stock Exchange
After the storm came the sun as markets recovered, if only slightly, for the Aug. 22-26 period, with the S&P TSX Composite Index rising 92 points to finish at 12,327.51 points.
The S&P TSX 60 index also edged up 5 points to end the period at 702.86 while the S&P TSX Capped Metals & Mining index rose 13 points to 1149.60.
With the improvement, talk shifted to aspects of the economy that appear healthy, such as imports of machinery, which were higher for the quarter, and more housing starts.
But rejuvenated markets weren’t good for gold as the yellow metal ended its historic run and fell US$65 to US$1,797.30 per oz. That lower dollar value rippled through to the miners as the Global Gold Index was down roughly 12 points to 418.30 for the period.
The Capped Metals & Mining Index climbed just 12 points for the period as it finished up at 1,149.70. Although the gain was modest, it reversed a downward trend as copper, aluminum, lead and zinc prices all recovered somewhat.
Cameco‘s hostile bid for junior Hathor Exploration had the latter’s shares setting a scorching pace for the period. Hathor’s stock was the largest gainer by percentage points as it climbed 40% to finish at $3.88. Cameco made an cash offer of $520 million or $3.75 per share, and onlookers believe the move could initiate a bidding war for Hathor and its high-grade Roughrider uranium project in Saskatchewan. Cameco took its bid directly to Hathor shareholders after failing to cut a deal with the company’s board. Cameco shares were up 6% for the period, finishing at $21.87.
Canadian Zinc also made a nice move over the period. The company was up 21% after announcing it signed a socio-economic agreement with the government of the Northwest Territories for the development of the junior’s Prairie Creek silver-zinc-lead mine.
Canada Lithium released results from the first 19 holes of a recently completed 56-hole drill program at its Quebec Lithium project near Val-d’Or, Que., and the market applauded the results. The company’s shares were up 20% to 60¢ on the back of highlights of 16 metres grading 1.21% Li2O and 25 metres grading 0.94%. The company also said that it has received provincial approvals for the location of a waste dump and mill , and the overall environmental approval process is proceeding as planned.
And Katanga Mining gained 17% to finish at $1.41, after it said it was pushing ahead on the expansion of a copper-cobalt project that will bring production capacity up to 310,000 tonnes copper per year. Glencore International, which owns 74% of Katanga, is funding the expansion.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Yamana GoldYRI2719515.9914.3415.70+0.39
Hathor ExplHAT262103.992.653.88+1.11
Kinross GoldK2282517.4916.0117.35+0.71
Eldorado GoldELD2122020.0617.7619.15-0.06
New GoldNGD1992913.3111.5213.27+0.95
Lake Shore GldLSG186642.562.212.36+0.07
Barrick GoldABX1809252.2346.9550.06-0.26
GoldcorpG1794853.8547.5050.98-0.20
Lundin MngLUN175185.354.925.15+0.15
Teck BTCKB1492641.2037.3540.61+2.66
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Hathor ExplHAT262103.992.653.88+40.0
Victory NickelNI26630.120.090.11+22.2
Emed MiningEMD10630.170.140.17+21.4
Canadn ZincCZN11150.940.740.86+21.1
Canada LithiumCLQ48240.630.470.60+20.0
Strateco ResRSC11760.440.380.44+18.9
Banro ResBAA38554.733.974.65+18.3
Katanga MngKAT14211.421.191.41+16.5
Taseko MinesTKO45683.943.203.79+14.5
Excellon ResEXN11780.800.720.80+14.2
Coro MiningCOP20120.590.180.28-55.5
Velocity MinlsVLC400.140.100.12-25.0
Polar Star MngPSR1890.590.420.47-20.3
EMC MetalsEMC5360.160.120.12-20.0
Diamond FieldsDFI1950.270.200.20-20.0
Energizer ResEGZ7540.270.220.22-18.5
Formation MtlsFCO10700.980.770.81-14.7
CaNickel MngCML1970.080.060.06-14.2
Torex GoldTXG30722.021.651.71-14.0
Geovic MngGMC3010.310.250.26-13.3
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
AgriumAGU503494481.93+6.05
Potash Cp SaskPOT1184422956.15+6.02
Walter EnergyWLT1876377.73+4.52
Royal GoldRGL4749573.00+3.96
Inmet MiningIMN297471957.61+3.38
Teck BTCKB1492647740.61+2.66
Newmont MngNMC8099361.00+2.66
Agnico-EagleAEM547146267.37+2.40
Coeur d AleneCDM25331727.50+2.29
Detour GoldDGC347539634.56+2.23
Central Gold-TGTU_U4977169.69-4.21
Seabridge GoldSEA14681428.40-1.27
Tahoe ResTHO91713918.42-0.98
Central FundCEFA171090524.47-0.97
Sprott Ph SilvPHSU64108419.20-0.76
Extorre Gold MXG203454910.12-0.60
Altius MnrlsALS22215110.15-0.53
Contintl GoldCNL11640955.84-0.52
Colossus MinlsCSI21254486.25-0.50
Silvercorp MtlSVM64747937.91-0.43
TSX Venture Exchange
The S&P/TSX Venture Composite Index was fairly calm in the Aug. 22 to 26 period, with the fluctuating gold price not translating directly to stock movements. Still, three days of losses outweighed two days of gains, leaving the Venture down 12.53 points at 1,752.31 points. Investor caution has kept volumes down, with an average of only 63.3 million shares traded daily.
Prophecy Platinum proved that its initial share spike from 60¢ to $5.63 in July was no one-time fluke, as the company climbed $1.25 to end at $5.45. The latest rise came after the company released results from the first 2011 hole at Wellgreen, which returned 473 metres grading 0.29% nickel, 0.13% copper and 0.46 gram platinum, palladium and gold combined. Drilled on the eastern extent of the project, the hole expands the mineralized zone to 500 metres wide.
Botswana-focused Hana Mining got a much-needed boost after releasing assay results from 13 holes at its sediment-hosted Ghanzi copper-silver project. The results included 5 metres grading 2.44% copper and 32 grams silver per tonne and 7 metres averaging 1.02% copper and 9.4 grams silver, which confirm the continuity and high-grade mineralization at South Limb South. Hana’s share price, which hit a 52-week high of $5.68 in December, climbed 57¢, or 45%, to close at $1.83 on the latest results.
Thinly traded Tawsho Mining saw a burst of activity after it reported some short but high-grade gold hits from its Whisker Valley project in northern Newfoundland. Hole 11-06 hit a 0.15-metre interval with an average grade of 19.7 grams gold, while hole 11-08 cut a 1-metre section with a weighted average of 7.9 grams gold. Most results have not yet been released. The company’s share price nearly doubled on the news, climbing 24¢ to 49¢ on 1.3 million shares traded.
Gold World Resources also saw a spike in activity, becoming the most-traded stock on the Venture with 6 million shares traded after the company released sample results from its Mount Anderson project in the Yukon at the end of the previous period. The results from 11 grab subsamples averaged 30.51 grams gold, 532 grams silver, 0.51% copper, 9.09% lead and 6.5% zinc, with one sample grading 192.9 grams gold and another sample returning 1,744
grams silver. The company’s share price went up 4¢ to 10¢ on the news. Gold World has an option to earn 100% of the 54-claim project that sits 55 km south of Whitehorse.
Toro Resources got a boost after the U.S. Forest Service gave the company a permit to drill at its Morgan Peak copper project in Arizona. Toro’s share price jumped 11¢ in the period to 25¢. Toro can now drill the southern and eastern parts of the project using 27 drill sites, and it plans to launch a 3,000-metre drill program by November. The company moved up from the CNSX to the Venture board in late May.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Gold World ResGDW60100.120.060.10+0.04
Fission EnergyFIS54580.660.490.62+0.13
RPT UraniumRPT47400.100.090.090.00
US SilverUSA45900.720.610.64-0.05
Benton ResBTC45480.560.290.30-0.23
Sandstorm ResSSL42901.411.221.36+0.01
Manson CreekMCK42850.220.140.14-0.03
North Am NicklNAN40700.200.140.19+0.05
Prophecy CoalPCY36470.710.630.69+0.07
IBC Adv AlloysIB36210.220.190.21+0.01
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Tawsho MngTAW12970.500.290.49+96.0
Toro ResTRK2460.250.150.25+78.5
Gold World ResGDW60100.120.060.10+66.6
TiexTIX2370.120.090.11+57.1
Karmin ExplKAR1440.500.300.50+56.2
Sparton ResSRI6270.140.090.14+55.5
Teslin Rvr ResTLR1500.090.080.09+50.0
Meritus MnlsMER4420.060.050.06+50.0
Everett MinlsEAR3100.040.030.03+50.0
Hana MngHMG19541.851.311.83+45.2
Benton ResBTC45480.560.290.30-43.4
Mayen MnlsMYM200.250.240.25-39.0
Strait GoldSRD1930.060.050.05-28.5
Latin Am MnlsLAT3750.250.190.19-26.9
Module ResMLE3410.100.090.09-25.0
Sunset Cove MgSSM6590.080.060.06-25.0
Richmond MnlsRMD5150.030.020.03-25.0
Mineral HillMHI6670.030.030.03-25.0
Megastar DevMDV1150.170.110.12-25.0
Bold VentBOL920.250.220.22-24.1
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Prophecy PlatNKL25039945.45+1.25
Rainy River RsRR66487010.42+0.85
Hana MngHMG19542681.83+0.57
Tawsho MngTAW12967220.49+0.24
Northern VertxNEE2285001.25+0.21
Lara ExplLRA3791101.65+0.20
Orbite Expl AORTA36156562.58+0.20
D Arianne ResDAN4792251.55+0.20
Karmin ExplKAR1435000.50+0.18
Quest Rare MnlQRM6420754.17+0.16
Atac ResATC8622237.58-0.59
Chesapeake GldCKG13064611.81-0.33
Trelawney M&ExTRR22291663.93-0.32
Newstrike CapNES6983722.98-0.32
Kaminak GoldKAM19484913.91-0.26
Benton ResBTC45476330.30-0.23
SoltoroSOL27202781.11-0.21
Callinan RoyalCAA1679002.93-0.21
Strategic MetlSMD8990422.51-0.20
Batero GoldBAT5863093.02-0.18
U.S. Markets
U.S. stocks posted their first positive trading week in more than a month with the Dow Jones Industrial Average gaining 4.3%, or 466.89 points, to close at 11,284.54, and the S&P 500 Index adding 53.27 points, or 4.7%, to finish at 1,174.80. Federal Reserve Chairman Ben Bernanke said that the central bank has “a range of tools that could be used to provide additional monetary stimulus,” but put off any decisions about further monetary measures until its annual meeting in September. The Philadelphia Gold and Silver Index climbed 2.6%, or 5.5 points, to close the trading week at 215.94.
Cliffs Natural Resources topped the charts, surging US$8.96 to US$76.60 on no news. On Aug. 15 the iron ore and coal producer announced that its board had approved the repurchase of as many as 4 million outstanding common shares. Given the recent volatility in equity markets, the company said its repurchase plan would allow it to “opportunistically acquire shares at attractive valuations.”
Potash was a sweet spot during the trading week with Agrium, Potash Corporation of Saskatchewan and Mosaic all rising significantly on no news. Agrium jumped US$6.78 to US$83.42, while Potash advanced US$6.37 to US$57.02 and Mosaic added US$6.36 to US$69.38.
Shares of Li3 Energy surged 50% to 15¢ apiece on news that it had signed a strategic partnership for lithium exploration with one of the world’s largest steel manufacturers. The junior’s partnership with Posco Canada, a wholly owned subsidiary of the South Korean steel giant, includes up to $18 million for exploration and development at its flagship Maricunga project, a lithium brine deposit in northern Chile.
Banro Corporation advanced 20.1% to US$4.78 per share – still basking in its Aug. 15 news release that gold production at the company’s first mine on the Twangiza-Namoya gold belt in the Democratic Republic of the Congo is on schedule for the fourth quarter, and that its phase one plant has entered cold commissioning. Hot commissioning is expected by mid-September. The board approved mine construction in the summer of 2009.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA12428012.0011.2011.86+0.65
Freeport McMo*FCX7635444.7341.4644.53+2.59
Barrick Gold*ABX5593352.7847.8251.03+0.25
Kinross Gold*KGC4884317.6716.3417.63+0.84
Newmont Mng*NEM4640263.5557.9062.17+2.09
Goldcorp*GG4549054.4448.2151.97+0.32
Silver Wheatn*SLW4336440.4736.0339.41+0.97
Hecla Mining*HL413527.707.087.68+0.58
Potash C Sask*POT3965057.2151.0057.02+6.37
Alpha Nat Res*ANR3926633.5327.5033.27+4.33
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Li3 Energy*LIEG50430.180.100.15+50.0
Gold Am Mng*SILA6820.060.040.05+25.0
Banro Res*BAA16754.804.034.78+20.1
Tombstone Exp*TMBXF8060.060.050.06+20.0
Lake Vict Mng*LVCA990.150.110.14+16.6
Alpha Nat Res*ANR3926633.5327.5033.27+14.9
Taseko Mines*TGB95384.013.233.86+14.8
Cardero Res*CDY8221.271.071.20+13.2
Cliffs Nat Rs*CLF1538376.9967.8876.60+13.2
Ivanhoe Mines*IVN1387120.8117.1820.42+12.6
Apolo Gold*APLL110.100.100.10-50.0
Tri-Valley*TIV60920.420.250.29-34.0
Linux Gold*LNXGF440.050.040.04-20.0
Cornerstone C*CTNXF770.190.160.17-15.0
America West*AWSR140.880.600.75-13.7
Radius Gold*RDUFF790.740.630.67-12.9
Minco Gold*MGH11511.361.071.14-12.9
Miranda Gold*MRDDF3670.500.440.47-11.3
Cream Mnrls*CRMXF4420.190.150.17-10.5
Alberta Star *ASXSF530.290.260.26-10.3
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Cliffs Nat Rs*CLF1538332576.60+8.96
Agrium*AGU242574183.42+6.78
Potash C Sask*POT3965035657.02+6.37
Mosaic*MOS3266772269.38+6.36
Walter Energy*WLT161274379.04+4.89
Royal Gold*RGLD594994174.83+4.83
BHP Billi-BHP*BHP2228205581.96+4.35
Alpha Nat Res*ANR3926578133.27+4.33
Peabody Enrgy*BTU3912067547.10+4.19
BHP Billi-BBL*BBL1084846764.90+3.97
Randgold Res*GOLD7241522106.36-3.63
Yanzhou
Coal*YZC230338126.30-2.42
Seabridge Gld*SA158612228.89-1.28
AngloGold Ash*AU1246991644.85-0.99
Central Fund*CEF1708064624.98-0.84
Gold Fields*GFI2512410616.28-0.56
Silvercorp Mt*SVM49540428.08-0.34
US Energy*USEG12821182.47-0.21
Entree Gold*EGI9223141.67-0.18
Minco Gold*MGH11510591.14-0.17
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