Toronto Stock Exchange
The TSX Composite Index was down 118 points to 11,949.49 points for the Oct. 17-21 period, as jittery markets cowered in the shadow of Europe’s debt woes.
Such nervousness failed to bolster gold prices – the metal fell US$47 to US$1,636.10 per oz., and the Global Gold Index dropped 28 points to finish up at 373.09 points.
The Capped Diversified Metals & Mining Index was also off, falling 47.61 points to 957.73 points. The drop came as prices softened for copper, aluminum, nickel, tin, lead and zinc.
Agnico-Eagle Mines indefinitely shut down its Goldex gold mine in Val-d’Or, Que., owing to instability caused by a weak volcanic rock unit in the hangingwall that let groundwater seep into the mine. While Agnico is leaving open the possibility of repairing the mine in the future, the uncertainty surrounding such an endeavour led to the mine’s write-off. That means the company is taking a US$260-million charge, or US$170 million after tax, plus costs of remediation. Agnico’s shares fell 26% to $44.30 for the period.
Laramide Resources saw its share price rise 25% to 89¢ for the period after updating the market on its permitting efforts at its La Sal project in San Juan county, Utah. Laramide says an environmental assessment has been prepared and was made public, which initiates the 30-day public comment period. A decision with respect to the permit is expected shortly thereafter. La Sal sits in Utah’s Lisbon Valley uranium district and was previously developed by the former Homestake Mining Company. Laramide is planning for underground uranium exploration and development activities at the project, which sits 64 km from Denison’s White Mesa mill at Blanding, Utah.
Aura Minerals‘ search for a new chief executive is over, and the market appeared to like its choice. Aura shares were up 13% to $1.53 after the company announced that Jim Bannantine would replace interim chief executive Tom Ogryzlo. Bannantine is a civil and mechanical engineer with an MBA from the Wharton School of Business. With 20 years of industry experience he has overseen pipeline and infrastructure projects in some of the key regions that Aura operates in, such as Brazil and Honduras.
Jaguar Mining revised its production guidance for the year and saw its share price fall by 25% to $4.10. The company says that based on actual production during the first three quarters of the year, the current production rate at its three mining operations will be in the range of 155,000 oz. gold to 163,000 oz. gold, at an average cash operating cost between US$835 per oz. and US$845 per oz. Jaguar had targeted over 200,000 oz. of production from the mines. It blamed mill issues at Paciencia for the shortfall, but expects to reach its targets in the near future.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Starfield ResSRU415600.040.020.020.00
Hathor ExplHAT237844.584.004.53+0.42
Cline MngCMK203071.981.591.62-0.33
Lundin MngLUN185754.373.924.10-0.25
Kinross GoldK1803614.8913.4213.83-0.99
Yamana GoldYRI1763615.4514.0014.50-0.89
Osisko MngOSK1505812.4310.8711.24-1.16
Barrick GoldABX1456448.9144.0944.92-3.84
Anvil MiningAVM145077.867.607.83+0.14
Agnico-EagleAEM1297460.1043.6044.30-15.54
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Crystallex IntKRY28490.230.160.20+33.3
Laramide ResLAM6360.890.710.89+25.3
MigaoMGO19503.622.983.60+19.6
Horizns G BearHGD27359.848.309.47+13.6
Inspiration MgISM950.170.140.17+13.3
Aura MnlsORA54811.571.171.53+13.3
Moly MinesMOL7100.560.470.54+12.5
Strathmore MnlSTM3480.450.390.45+12.5
CanAlaska UranCVV600.540.460.50+11.1
Carlisle GoldfCGJ5150.250.170.20+11.1
Agnico-EagleAEM1297460.1043.6044.30-25.9
Coro MiningCOP4250.500.320.35-25.5
Jaguar MngJAG16375.534.074.10-25.0
PlatminPPN5990.430.280.30-25.0
Zincore MtlsZNC11080.370.270.30-21.0
Lake Shore GldLSG105421.651.271.29-20.3
Erdene Res DevERD2520.560.410.43-20.3
Talon MetalsTLO5630.730.490.56-20.0
OceanaGoldOGC25822.772.192.21-19.6
PC GoldPKL12990.540.390.43-18.8
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Horizns G BearHGD27345159.47+1.14
Detour GoldDGC302342229.99+1.02
Russell MetalsRUS121303622.35+0.90
Karnalyte ResKRN12887816.44+0.62
MigaoMGO19501283.60+0.59
Franco-NevadaFNV268217738.66+0.53
AgriumAGU383644777.00+0.45
Hathor ExplHAT237840524.53+0.42
Seabridge GoldSEA6595723.87+0.33
Orbit Garant DOGD237005.30+0.30
Agnico-EagleAEM1297415144.30-15.54
Newmont MngNMC1081963.00-4.38
GoldcorpG1103812745.00-3.84
Barrick GoldABX1456351544.92-3.84
Labdr I-Ore RoLIF_U81264531.00-3.44
Allied NevadaANV113621435.61-2.94
Royal GoldRGL1188164.47-2.47
Silver WheatonSLW961849930.11-2.42
Silver Std ResSSO68906017.08-2.17
Walter EnergyWLT3985575.65-2.17
TSX Venture Exchange
The recent market rebound at least temporarily stalled as the S&P/TSX Venture Composite Index lost 24.7 points to end at 1,532.91 points. Volume was roughly in line with recent weeks at an average of 86 million shares traded daily.
Silver Quest Resources and Geo Minerals traded briskly after New Gold announced plans to acquire both their land holdings around the Blackwater deposit in B.C. New Gold offered 0.09 of a New Gold share plus one share in a new Yukon exploration entity for every 3 Silver Quest shares held, which values Silver Quest at $1.32 per share for a $131-million equity value. Silver Quest’s share price jumped 30¢, or 35%, to $1.17, with a total of 19.6 million shares traded. New Gold offered Geo 16¢ per share, valuing the company at $17 million, with Geo’s share price climbing 4¢, or 33%, to 16¢ with 23.4 million shares traded.
Boss Power saw the biggest non-share rollback percentage gain after the company settled a long-standing legal dispute with the British Columbia government. The government had banned uranium exploration in 2008, so Boss sued for compensation. In mid-October Boss got its $30-million compensation in an out-of-court settlement without having drilled a single hole on the property, although the project had an historic resource outlining 10 million lbs. of uranium oxide. Boss’ share price jumped 14¢, or 104%, to end at 28¢ on the news.
St. Elias Mines had a burst of activity in the period, climbing from $1.98 to a brief high of $2.80 before ending up 51¢ at $2.49, for the highest value gain of the period. The company released a corporate update midway through the period reminding investors that it is working through a 10,000-metre drill program on its Tesoro gold project in Peru and that, thanks to a recent $4.5-million financing, it now has $9.2 million in its treasury.
Grayd Resource was one of the most-traded companies after Agnico-Eagle Mines, which is set to take it over, wrote off its Goldex mine. The news sent Agnico’s shares down 20%, and Grayd’s fell 19¢ to $2.30. Agnico later doubled the cash component of the $275-million takeover bid to $183 million and Grayd’s stock bounced back. Grayd’s share price ended down 7¢ at $2.47 on 14.2 million shares traded.
The curious and rapid rise of Hellix Ventures looks to have come ful
l circle. The company’s share price shot up from 70¢ in early September to a high of $1.67 on Sept. 21 following sampling results from its Athabasca property near Nelson, B.C., where the highest gold value found in 374 samples was 0.695 gram gold per tonne. The company’s share price hovered around $1.40 until the end of September before starting a gradual fall. In the latest period the price plunged 36¢, or 34.6%, to end at 68¢.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Geo MineralsGM234430.160.160.16+0.04
PMI GoldPMV218171.300.991.05+0.02
Silver Quest RSQI196311.201.081.17+0.30
Grayd ResGYD141532.572.212.47-0.07
Axmin IncAXM72860.050.040.04-0.01
Victoria GoldVIT65340.550.440.44-0.05
Sunridge GoldSGC61400.410.310.35-0.05
RoxgoldROG59201.551.151.20-0.09
Penteco ResPEN49960.310.140.25+0.13
Tyhee GoldTDC45440.110.090.09-0.01
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Logan ResLGR11110.140.040.14+180.0
Boss PowerBPU7310.350.160.28+115.3
Penteco ResPEN49960.310.140.25+108.3
Firesteel ResFTR2380.090.050.08+100.0
Stratabd MnrSB330.070.070.07+75.0
Luiri GoldLGL2350.190.150.19+72.7
Parlane ResPPP3200.260.120.19+72.7
Silver PursuitSPF1250.150.120.15+66.6
Jazz ResJZR420.180.120.18+63.6
Dajin ResDJI8710.120.080.11+57.1
RT MineralsRTM2090.140.080.08-46.6
Tribute ResTRB120.080.070.07-41.6
Asbestos CorpABH210.150.150.15-40.0
Augen CapitalAUG410.050.050.05-37.5
Caracara SilvrCSV4400.280.160.21-36.3
Hellix VentHEL5831.050.670.68-34.6
Sedex MngSDN15020.040.020.02-33.3
Dot ResDOT5530.020.020.02-33.3
Barisan GoldBG2210.500.370.37-32.7
Abington ResABL1160.700.480.51-32.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
St Elias MnsSLI29812702.49+0.51
Abitibi RoyaltRZZ217892.65+0.50
Anfield NickelANF2587285.70+0.45
Fortress MnlsFST998004.40+0.40
Lumina CopperLCC3066017.75+0.35
Silver Quest RSQI196314551.17+0.30
Lithium OneLI8565971.00+0.19
Probe MinesPRB13740142.23+0.18
Galway ResGWY33657371.46+0.17
Bralorne GoldBPM403911.08+0.15
Chesapeake GldCKG2103113.96-0.67
Atac ResATC8417043.41-0.59
Bear Creek MngBCM5420253.77-0.55
Verde PotashNPK1709385.90-0.45
Tasman MetalsTSM4692062.52-0.43
Quest Rare MnlQRM5871912.78-0.41
Batero GoldBAT2471402.24-0.38
Hellix VentHEL5827670.68-0.36
Kaminak GoldKAM6944902.73-0.36
Tigray ResTIG2621711.39-0.33
U.S. markets
Doubts about a resolution to the euro zone crisis weighed on U.S. equities as differences between France and Germany surfaced mid-week ahead of a European Union summit on Oct. 23. The markets eked out small gains on the back of corporate earnings, and data showed that factory activity in the mid-Atlantic U.S. has rebounded. The Dow Jones Industrial Average rose 1.24%, or 144.3 points, to 11,808.79 and the S&P 500 Index gained 1.12%, or 13.67 points, to 1,238.25. The Philadelphia Gold and Silver Index lost 12.9 points, or 6.52%, to 184.87.
A continued strike at the Grasberg copper-gold mine in Indonesia dogged Freeport-McMoRan Copper & Gold, the second most actively-traded stock. Its shares fell 19¢ to US$36.58. Unionized workers walked off the job on Sept. 15. In the company’s financial results announcement on Oct. 19, it said the estimated impact of the strike on third-quarter production, including an eight-day strike in July, totalled 70 million lbs. copper and 100,000 oz. gold. Net income reached US$1.1 billion, or US$1.10 per share, in the third quarter compared with US$1.2 billion, or US$1.24 per share, in the third quarter of 2010. Net income for the first nine months this year was US$3.9 billion, or US$4.10 per share, up from US$2.7 billion, or US$2.94 per share, for the same period in 2010.
Uranium Resources surged 44.4% to US$1.30 per share on news that the Nuclear Regulatory Commission has reactivated its licence to conduct in-situ uranium leach mining in New Mexico. The licence allows the company to produce up to 3 million lbs. of uranium. The company hopes to complete a feasibility study by the end of the year on advancing its Churchrock-Crownpoint project, and plans to be in production in 2013.
News that Mesabi Trust had declared a distribution of US$1.12 per unit, up from 90¢ in the year-earlier period, sent the royalty company’s shares up 15.8%, or US$3.76, to close the week at US$27.55. Mesabi Trust said the jump primarily came from higher average sale prices per ton of iron ore pellets, which contributed to increases in the base royalty payment and the bonus royalty payment.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA20226110.339.5510.23-0.03
Freeport McMo*FCX13638636.6333.2136.58-0.19
Barrick Gold*ABX4180748.2543.1244.59-3.65
Alpha Nat Res*ANR4068821.7319.2721.73+0.08
Potash C Sask*POT3532150.5847.0849.26-1.44
Hecla Mining*HL348375.955.155.53-0.46
Newmont Mng*NEM3408167.3960.7862.63-4.23
Mosaic*MOS3350959.4952.5158.45+1.34
Kinross Gold*KGC3284714.7013.1313.70-0.93
Silver Wheatn*SLW3278632.2228.0129.80-2.35
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Uranium Res*URRE159851.470.771.30+44.4
Habanero Res*HBNRF250.060.050.06+20.0
America West*AWSR120.700.560.65+18.1
Mesabi Trust*MSB102428.1023.7927.55+15.8
Denison Mines*DNN6281.421.121.38+11.2
Infrastrc Mat*IFAM2900.100.080.10+11.1
Lake Vict Mng*LVCA330.160.090.10+11.1
Geovic Mng*GVCM1550.260.210.23+9.5
Dejour Enterp*DEJ4830.390.340.37+8.8
Ur-Energy*URG6261.250.971.16+8.4
Agnico-Eagle*AEM2789259.3643.0043.84-26.0
Gold Am Mng*SILA1670.080.060.06-25.0
Douglas Lk Ml*DLKM10380.200.140.16-23.8
Lake Shore Gd*LSG4861.641.251.28-20.9
El Capitan Pr*ECPN8490.620.470.48-17.2
Silver Dragon*SDRG18120.090.040.05-16.6
Gold Reserve*GRZ1072.502.332.02-16.1
Nevsun Res*NSU51255.554.324.67-14.6
Quest Rare Mn*QRM13193.262.702.75-14.6
Quaterra Res*QMM1410.930.760.80-13.9
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Mesabi Trust*MSB102412827.55+3.76
Soc Quim&M Ch*SQM394266556.51+1.75
Mosaic*MOS3350910858.45+1.34
Cabot Corp*CBT284021128.16+0.63
Agrium*AGU213316876.45+0.62
Franco-Nevada*FNV88700638.24+0.58
MDU Res*MDU501718320.88+0.40
Uranium Res*URRE159846471.30+0.40
Seabridge Gld*SA150343223.64+0.34
HudBay Mnls*HBM4745410.72+0.21
Agnico-Eagle*AEM2789163043.84-15.43
Cliffs Nat Rs*CLF2562503360.03-5.18
Newmont Mng*NEM3408053762.63-4.23
Goldcorp*GG3055217044.63-3.75
Barrick Gold*ABX4180676844.59-3.65
Buenaventura*BVN469116238.51-3.33
Randgold Res*GOLD2246768100.04-3.24
Allied Nevada*ANV54542035.28-2.76
BHP Billi-BHP*BHP2130693175.07-2.63
Walter Energy*WLT219357575.00-2.36
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