Toronto Stock Exchange
The TSX Composite Index came back to life for the holiday-shortened Oct. 11-14 period and finished 235 points higher than where it began, at 12,081.73 points.
The positive swing came as fears surrounding the European debt crisis subsided – for the time being – and better-than-expected earnings were reported in the retail sector.
Gold marched back upwards by US$5 to US$1,683 per oz., and the Global Gold Index moved in the same direction to settle three points higher, reaching 399.78 points.
Base metal prices were a varied bunch as copper, nickel and lead prices moved higher and aluminum, tin and zinc prices fell. The Capped Metals & Mining Index was up 43 points to 1,009.97 points.
Coro Mining‘s shares made the largest percentage gain, up 88% to 47¢ for the period after the company announced it had intercepted 0.67% copper over 144 metres and 0.60% copper over 74 metres at its Chacay property in Chile. The property is located 12 km southeast of Teck Resources’ Relincho copper project.
It was a good news, bad news period for First Uranium, but fortunately for its shareholders, the good news won out and shares were up 61% to 29¢. The good news came from production results, with the company reporting a 17.7% increase in gold sales to 40,529 oz. for the quarter. Uranium production was also up 76.8% to 36,006 lbs. The bad news had to do with the South African government withdrawing the mining rights for its Mine Waste Solutions project. The company said the project continues to operate, however, and doubts that the government’s new order is required.
The merger between B2Gold and Auryx Gold had the latter’s shares climbing. Auryx shares were up 56% to 72¢ for the period. The deal will see Auryx shareholders get 0.23 of a B2Gold share and 0.1¢ in cash for each share held. Analysts note that based on B2Gold’s closing price of $3.30 on the day of the offer, the transaction implies a share valuation of 76¢ apiece for Auryx, a 65% premium to Auryx’s closing price on Oct. 7 and a dollar value of $138 million for the deal.
Once consummated, B2Gold will wind up with Auryx’s 92% interest in the Otjikoto gold project in Namibia.
And Avnel Gold Mining received a 33% boost to its equity valuation, as its shares finished the period at 52¢. The company announced that its latest exploration program had cut 60,000 metres of diamond reverse-circulation holes at its 80% owned Kalana permit in Mali. The program is being operated by Iamgold, which can earn a 51% interest in Kalana by spending US$11 million on exploration activities over a three-year period, and by delivering a resource estimate of at least 2 million oz. gold.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Auryx GoldAYX414470.760.700.72+0.26
Osisko MngOSK2792613.0911.9612.40-0.22
Anvil MiningAVM190477.697.447.69+0.31
Kinross GoldK1762614.8514.2314.82+0.66
Lundin MngLUN164214.443.974.35+0.54
Yamana GoldYRI1622215.4514.6415.39+0.84
Cline MngCMK160531.991.701.95+0.28
Mercator MnlsML159111.921.601.89+0.30
Teck BTCKB1282336.9734.1636.69+3.04
First QuantumFM1258818.1815.4517.17+1.47
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Coro MiningCOP6790.480.250.47+88.0
First UraniumFIU36290.320.200.29+61.1
Auryx GoldAYX414470.760.700.72+56.5
Talon MetalsTLO3830.750.470.70+52.1
Liberty MinesLBE22520.220.120.18+50.0
Minco GoldMMM1881.270.881.26+40.0
Velocity MinlsVLC5530.280.190.26+36.8
Rockwell DiamRDI1970.700.490.67+36.7
Uranerz EnergyURZ2382.091.722.02+33.7
Avnel GoldAVK2950.530.380.52+33.3
Geovic MngGMC1370.270.220.22-26.6
Mariana ResMRY440.230.160.16-15.7
Rio Novo GoldRN3230.870.740.75-13.7
Harte GoldHRT4660.370.300.31-11.4
Caledonia MngCAL1230.090.080.08-11.1
Yorbeau Res AYRBA2300.190.170.17-10.5
Victory NickelNI8420.090.070.09-10.0
Carlisle GoldfCGJ1380.220.180.18-10.0
Calvista GoldCVZ2840.740.600.67-9.4
Carpathian GldCPN34100.570.490.50-9.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Walter EnergyWLT3075277.82+14.25
AgriumAGU315122376.55+5.39
Potash Cp SaskPOT1043816951.31+4.98
Inmet MiningIMN125748852.51+3.30
Teck BTCKB1282308036.69+3.04
Teck ATCKA1667437.80+2.80
Newmont MngNMC5206167.38+2.72
Richmont MinesRIC85059311.26+2.03
Coeur d AleneCDM8348524.19+1.80
Ivanhoe MinesIVN360820918.43+1.66
Horizns G BearHGD18866128.33-0.47
Pretium ResPVG7279959.60-0.35
Osisko MngOSK2792628312.40-0.22
Silvercorp MtlSVM21597898.70-0.21
B2GoldBTO111343643.35-0.13
Mountain ProvMPV2559363.93-0.12
Rio Novo GoldRN3229480.75-0.12
Forbes & Man CFMC1139912.00-0.12
Foraco IntlFAR372003.30-0.09
Almaden MnlsAMM1872952.55-0.09
TSX Venture Exchange
Cautious optimism had the S&P/TSX Venture Composite Index climbing again, up 85.11 points in the shortened October 11-14 trading period to reach 1,557.61 points. The index climbed on three trading days while dropping 10.14 points on one day, with an average of 89.5 million shares traded daily.
PMI Gold was one of the standouts, climbing 48¢, or 87%, to $1.03 with 14.9 million shares traded. The company released a resource update for its Obotan gold project in Ghana that showed a 270% increase in the resource. Spread over four deposits, the project is now estimated to contain 42.2 million measured and indicated tonnes grading 2.4 grams gold per tonne for 3.22 million contained oz. gold, plus 17.5 million inferred tonnes grading 2.35 grams gold for a further 1.3 million oz. gold.
Robex Resources was the only mining company to see more trading than PMI, with 20.6 million shares trading as the company climbed 2¢ to 23¢. Robex released no news in the period, but did release a resource during the September downturn. The company’s Nampala gold deposit has 19.9 million measured and indicated tonnes grading 0.82 gram gold for 524,000 oz. gold in the oxides, plus 7.3 million measured and indicated tonnes grading 0.81 gram gold in the sulphides for 190,000 oz. gold. Inferred resources add 50,000 oz. grading 0.63 gram gold in the oxides and 766,000 oz. grading 0.96 gram gold in the sulphides.
Probe Mines continued a strong recovery, up 45¢ on four days of gains to close at $2.05, its highest level since December. The gains come after the company climbed 28¢ in two days the period before after hitting an October low of $1.22. Probe is working to advance its Borden Lake project, which has a resource estimate of 11.6 million indicated tonnes grading 0.8 gram gold for 305,000 oz., plus inferred resources of 169.3 million tonnes grading 0.69 gram gold for 3.76 million oz. Probe plans to have an updated resource out by the end of the year and metallurgical test results out soon.
Rare earth stocks have taken a beating in recent months, but Tasman Metals was up 67¢ to $2.95 after securing the Olserum heavy rare earth project in Sweden, 100 km east of its flagship Norra Karr project. Tasman bought the new project from a private U.K.-registered company for 38,000 shares. Olserum has a 600-by-100-metre mineralized zone, while the granted exploration claim covers 11 sq. km.
Atacama Pacific Gold saw the biggest value drop despite announcing a property expan
sion deal. The company’s stock dropped 42¢ in one day on 4,200 shares traded, before it announced it had signed an option agreement for the Santa Teresa gold property adjacent to its Cerro Maricunga project in Chile. Following the announcement, the company’s stock rallied 12¢ on 30,800 shares to end at $4.20.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Robex ResRBX206030.250.190.23+0.02
PMI GoldPMV148511.100.511.03+0.48
Orbite Expl AORTA130753.012.222.90+0.89
Alix ResAIX79220.230.110.15+0.03
Axmin IncAXM66880.050.040.050.00
Pershimco ResPRO66011.010.900.97+0.03
RoxgoldROG59331.401.021.29+0.25
Reunion GoldRGD43991.291.181.250.00
Canaco ResCAN43662.151.831.96+0.13
EastCoalECX39630.590.410.46+0.02
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
RT MineralsRTM2890.150.100.15+114.2
PMI GoldPMV148511.100.511.03+87.2
Pac Iron OrePOC1400.200.130.20+81.8
RockBridge ResRBE5010.070.040.07+75.0
Carmax MngCXM2280.120.080.12+71.4
Endurance GoldEDG1100.120.100.12+71.4
Crown MnlsCWM1220.050.050.05+66.6
Portal ResPDO1420.150.090.15+66.6
Britannica ResBRR230.300.210.25+66.6
Cortez GoldCUT2680.100.060.10+66.6
Jazz ResJZR170.240.120.12-52.0
Brigadier GoldBRG1170.070.050.06-40.0
Cassius VentCZ250.170.150.15-34.7
Starfire MnrlsSFR3560.030.020.02-33.3
Galena CapitalFYI890.130.090.09-30.7
Silver PursuitSPF500.120.100.10-28.5
Honey Badger ETUF1500.050.040.05-28.5
Dynasty GoldDYG870.080.080.08-27.2
Prospero SilvePSL970.250.220.22-26.6
Minaurum GoldMGG540.360.340.34-26.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Pac Booker MinBKM133608.37+0.90
Orbite Expl AORTA130745492.90+0.89
Chesapeake GldCKG8354914.63+0.78
Tasman MetalsTSM5458452.95+0.67
Maudore MinlsMAO2111024.16+0.64
Lumina CopperLCC6057147.40+0.60
Quest Rare MnlQRM6821263.19+0.53
PMI GoldPMV148512291.03+0.48
Probe MinesPRB14952972.05+0.45
Prophecy PlatNKL6030903.07+0.41
Atacama Pac GdATM355004.20-0.30
Hellix VentHEL1901691.04-0.19
Callinex MinesCNX133300.58-0.17
Jazz ResJZR172000.12-0.13
Amarillo GoldAGC256401.38-0.12
Minaurum GoldMGG540000.34-0.12
Midland ExplMD451131.38-0.12
Lions Gate MtlLGM502000.38-0.11
Lion One MtlsLIO952401.03-0.11
Monument MngMMY15048930.46-0.10
U.S. markets
Despite warnings by European Central Bank President Jean-Claude Trichet that the European debt crisis had “reached a systemic dimension,” the defeat in the Senate of U.S. President Barack Obama’s US$447-billion “jobs bill,” a shift among Wall Street brokers away from equities into fixed income and cash, and mounting consumer anger in the U.S. against the financial system, which has erupted into leftist-led protest rallies across the country – U.S. equities were remarkably resilient, and posted their first back-to-back weekly gain since early July. The Dow Jones Industrial Average climbed 4.9% to close at 11,644.49, while the S&P 500 Index jumped 6% to 1,224.58 points. The Philadelphia Gold and Silver Index gained 5.5% to 197.77.
Speculation of a takeover bid sent shares of Walter Energy surging 26.6%, or US$16.28, to US$77.36 per share. The Australian newspaper reported that BHP Billiton was contemplating a US$6-billion bid for the company, while Britain’s The Independent reported that both BHP and Anglo American were considering acquiring the company. Other U.S. coal stocks rose sharply in anticipation of higher prices for coal and steel. Alpha Natural Resources was the third most-actively traded stock of the week, rising US$3.26 to US$21.65, while Arch Coal rose US$2.16 to US$17.50. Peabody Energy gained US$4.81 to US$39.46, on news that its proposed joint acquisition with steelmaker ArcelorMittal of Australia’s Macarthur Coal had received final regulatory approval.
Alcoa was the most actively traded stock, climbing 55¢ to US$10.26. The company reported higher revenue and earnings in the third quarter of 2011 compared with the same quarter a year ago, but lower sequential earnings owing to lower metal prices, seasonal factors and weakness in Europe. Net income reached US$172 million, up 182% over the year-earlier quarter but down 47% from this year’s second quarter. Revenues climbed 21% year-on-year to US$6.4 billion, but were down 3% from this year’s second quarter. The company forecasts 12% growth before 2012 and believes aluminum demand will double by 2020.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA27307410.449.7310.26+0.55
Freeport McMo*FCX12939637.3534.1636.77+3.01
Alpha Nat Res*ANR4766722.3419.1921.65+3.26
Potash C Sask*POT4377150.7446.1050.70+6.05
Mosaic*MOS3253557.2952.5257.11+5.92
Kinross Gold*KGC2973214.6413.8014.63+0.95
Arch Coal*ACI2925817.5915.8117.50+2.16
Hecla Mining*HL288426.045.535.99+0.57
Peabody Enrgy*BTU2519440.0035.6239.46+4.81
Silver Wheatn*SLW2488833.0230.5332.15+2.07
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Minco Gold*MGH8891.260.851.24+44.1
El Capitan Pr*ECPN25010.720.420.58+41.4
Uranerz Energ*URZ19822.011.502.00+33.3
China Shen Zh*SHZ1292.001.381.88+28.7
Uranium Res*URRE38850.940.710.90+26.7
Walter Energy*WLT271183.6362.1877.36+26.6
Quaterra Res*QMM1180.940.750.93+25.6
Richmont Mine*RIC282811.209.1011.12+24.9
Yanzhou Coal*YZC216425.9221.3325.84+24.7
General Moly*GMO31593.252.633.24+24.1
America West*AWSR100.560.550.55-21.4
Geovic Mng*GVCM2260.300.210.22-18.5
Habanero Res*HBNRF370.070.050.05-16.6
Legend Intl H*LGDI5570.400.300.33-15.3
Lake Vict Mng*LVCA630.110.090.09-10.0
Loncor Res*LON151.721.551.55-4.9
Mountain Prov*MDM704.153.753.89-2.7
Alumina Inc*AWC14456.606.156.41-1.8
Anooraq Res*ANO4710.670.570.58-1.6
Gold Reserve*GRZ582.502.322.41-1.2
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Walter Energy*WLT271120177.36+16.28
Cliffs Nat Rs*CLF1978767865.21+9.34
Agrium*AGU174176675.83+7.12
BHP Billi-BHP*BHP1914493777.70+6.17
Alliance Rs P*ARLP28313871.47+6.15
Potash C Sask*POT4377135950.70+6.05
Mosaic*MOS3253524257.11+5.92
Randgold Res*GOLD2325685103.28+5.57
Consol Energy*CNX2066271741.42+5.40
Soc Quim&M Ch*SQM237228254.76+5.28
America West*AWSR100770.55-0.15
Alumina Inc*AWC14454816.41-0.12
Mountain Prov*MDM700483.89-0.11
Loncor Res*LON146001.55-0.08
Legend Intl H*LGDI5568400.33-0.06
Silvercorp Mt*SVM25016688.60-0.06
Geovic Mng*GVCM2263170.22-0.05
Gold Reserve*GRZ579532.41-0.03
Lake Vict Mng*LVCA625000.09-0.01
Habanero Res*HBNRF365000.05-0.01
Be the first to comment on "Market news"