Market news

Toronto Stock Exchange

The S&P/TSX Composite Index ended down 111.26 points to 12,408. Investors pushed the price of gold up as they fretted over Greece’s debt situation and the weak economic data coming out of North America.

Canada’s unemployment rate rose to 7.3% with 54,000 jobs lost in October, according to Statistics Canada. The loss nearly wiped out September’s gain of 61,000 jobs.

Gold was up US$10.60 to US$1,754 per oz. in New York, which helped the Global Gold Index bolster a 14.49-point gain to 425.57 points. This upward movement was also apparent in the S&P/TSX Capped Diversified Metals & Mining Index, which moved up 10.44 points to 1,173.84 points.

Grande Cache Coal

was the week’s biggest percentage gainer and the most-traded stock. On Oct. 31, it received a joint-acquisition bid from two major Asian players: China’s Winsway Coking Coal Holdings and Japan’s Marubeni. The commodity trading houses offered to buy out the Alberta coal producer for $10 a share in cash, or $983 million. This represents a 70% premium over its closing price a day before the bid. Thrilled with the offer, investors pushed Grande Cache up 67%, or $3.94, to $9.81 apiece on 76.5 million shares traded. The company forecasts annual production at its Smoky River Coalfield in Alberta to increase to 2 million tonnes by 2012. Grande Cache is the last remaining Canadian pure-play coking coal producer.

Ivernia

shares jumped 50% to 12¢. On Nov. 4 it announced it will report quarterly financial results for the period ended Sept. 30, after market close on Nov. 14. The company owns the Magellan lead carbonate mine in Western Australia, which has been on care and maintenance since April.

After announcing plans to boost production at its Lamaque gold mine in Val-d’Or, Que., White Tiger Gold gained 24% to close at 87¢ apiece on 4.3 million shares traded. On Oct. 31 the company announced that operations at Lamaque have been restarted. It expects to mine 2,000 tonnes a day from Lamaque by early 2012.

Lundin Mining

was the second most actively traded stock, with 42.8 million shares changing hands. But investors still pushed its shares down 6¢ to $4.03. Lundin announced that Freeport-McMoRan Copper & Gold, the operator of its Tenke Fungurume mining operations in the Democratic Republic of the Congo, has approved a second expansion phase at the project. The expansion is expected to add 150 million lbs. of copper cathode a year to production. It should be completed in 2013. Lundin also reported that Paul Conibear, its interim president and CEO, formally took the company’s reins on Oct. 31. Lundin has a 24% interest in Tenke Fungurume, while Freeport holds 56% of the project. The state-owned miner Gécamines holds the remaining 20%.

TSX most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Grande Cache C GCE 76543 9.88 9.71 9.81 + 3.94

Lundin Mng LUN 42873 4.10 3.63 4.03 – 0.06

Cline Mng CMK 34484 2.37 1.86 2.14 + 0.37

Lake Shore Gld LSG 24744 1.89 1.38 1.83 + 0.23

Kinross Gold K 21862 15.09 13.85 14.56 – 0.08

Eastern Platin ELR 21827 0.67 0.60 0.64 – 0.06

Teck B TCKB 21452 41.25 36.20 39.47 – 2.03

Torex Gold TXG 19911 1.78 1.40 1.62 + 0.03

Barrick Gold ABX 17122 52.79 48.03 52.23 + 1.73

Potash Cp Sask POT 16958 49.19 45.34 48.89 – 0.84

TSX greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Grande Cache C GCE 76543 9.88 9.71 9.81 + 67.1

Ivernia IVW 2648 0.13 0.07 0.12 + 50.0

Red Cresc Res RCB 66 0.37 0.30 0.37 + 48.0

White Tigr Gld WTG 4308 0.88 0.68 0.87 + 24.2

Mountain Prov MPV 333 4.95 3.71 4.81 + 23.9

Canada Lithium CLQ 4555 0.60 0.49 0.59 + 22.9

INV Metals INV 448 0.27 0.22 0.27 + 22.7

Eco Oro Mnls EOM 1002 3.22 2.40 3.11 + 22.4

Cline Mng CMK 34484 2.37 1.86 2.14 + 20.9

Formation Mtls FCO 7860 0.65 0.43 0.51 + 18.6

Mariana Res MRY 398 0.19 0.05 0.11 – 26.6

Polar Star Mng PSR 252 0.54 0.45 0.47 – 22.9

Wesdome Gold WDO 1046 2.63 1.81 2.13 – 18.3

Bannerman Res BAN 599 0.31 0.26 0.27 – 18.1

Diamond Fields DFI 97 0.17 0.14 0.14 – 17.6

Velocity Minls VLC 107 0.22 0.19 0.19 – 17.3

Redzone Res REZ 16 0.32 0.29 0.29 – 17.1

TVI Pacific TVI 3680 0.05 0.04 0.05 – 16.6

Platmin PPN 1249 0.29 0.25 0.25 – 16.6

Talon Metals TLO 208 0.56 0.49 0.50 – 15.2

TSX greatest value change

WEEK

VOLUME CLOSE CHANGE

Royal Gold RGL 48622 80.42 + 8.25

Grande Cache C GCE 76543215 9.81 + 3.94

Imperial Metal III 199530 24.20 + 3.25

Goldcorp G 13980910 52.41 + 2.73

Agnico-Eagle AEM 4895395 46.01 + 2.54

Ivanhoe Mines IVN 8508857 22.82 + 2.04

Newmont Mng NMC 23502 70.27 + 1.75

Barrick Gold ABX 17122065 52.23 + 1.73

Franco-Nevada FNV 3151782 41.86 + 1.51

Centerra Gold CG 2034017 21.03 + 1.50

Walter Energy WLT 37060 76.90 – 3.80

Agrium AGU 5600034 79.97 – 3.38

Teck B TCKB 21451700 39.47 – 2.03

Teck A TCKA 15657 40.66 – 1.84

Alamos Gold AGI 3170539 17.06 – 1.79

Potash Cp Sask POT 16958140 48.89 – 0.84

Cameco Corp CCO 6516061 21.77 – 0.70

HudBay Minls HBM 3359038 10.86 – 0.59

Anvil Mining AVM 12484362 7.27 – 0.58

Horizns G Bear HGD 3784991 7.16 – 0.56

TSX Venture Exchange

The S&P/TSX Venture Composite Index stayed in the black during the Oct. 31-Nov. 4 period despite renewed uncertainty surrounding the European debt crisis. The index dropped 41.01 points over two days and climbed 61.13 points over three days to end up 20.12 points at 1,650.01 points. Volume was noticeably down to an average of 82 million shares traded daily, a drop in the average of 17 million shares compared to the week before.

Verde Potash was the biggest value gainer of the period, up $1.40 to end at $7.60 on 150,000 shares traded. The company has not released news since outlining a resource at its Calcario limestone project in Brazil, which came in at 89 million indicated tonnes grading 54.71% calcium oxide
and 180 million inferred tonnes grading the same. Limestone is a key component in thermopotash processing, which requires roasting the potassium oxide to create an effective fertilizer. The company’s share price peaked at $10.95 in late April, while it traded for as low as $3.31 a year ago.

Lumina Copper continued its steady October climb, rising from $5.60 early in the month to a high of $9.70 on Nov. 3. The company ended the period at $9.35, up 95¢ on 240,000 shares traded on no apparent news. In early October the company released drill results from its Taca Taca copper-gold-molybdenum project in Argentina, including hole 11-35 that hit 586 metres grading 0.77% copper, 0.13 gram gold per tonne and 0.02% molybdenum from 75 metres outside the established resource shell. The company has five drills operating at the 25-sq.-km project in the country’s Puna region.

Northrock Resources saw a 7¢, or 45%, increase to 23¢ after announcing the closure of an option deal to acquire the Manalo gold project in Mali from Appleton Exploration and Delta Exploration. The deal, announced at the end of September, has Northrock paying $50,000 cash, 1.5 million units and spending US$2.5 million on exploration for 65% of the project, with a US$1.5-million cash payment to Delta for the remaining 35%. The project spans 146 sq. km in an area 100 km southwest of Bamako, the capital.

Noront Resources was up 15¢ to end at 85¢ following a 20¢ climb in the last days of the previous period. The company released results from 16 drill holes at its Blackbird chromite deposit at the McFaulds Lake project in northern Ontario that included 16 metres grading 42.81% chromium oxide, 22 metres carrying 4.67% chromium oxide and 20 metres grading 42.4% chromium oxide. The company stated that the results extend mineralization north to northeast and at depth, while Noront plans to update the resource and release a scoping study by the second quarter of 2012.

TSX-V most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

CB Gold CBJ 15436 2.03 1.47 1.69 – 0.13

Victoria Gold VIT 11965 0.47 0.44 0.47 + 0.01

Ashburton Vent ABR 9294 0.12 0.08 0.09 – 0.02

Canaco Res CAN 8699 1.96 1.57 1.86 + 0.11

Iberian Mnls IZN 8483 0.89 0.74 0.86 + 0.06

Placer Dome PDG 8381 0.79 0.61 0.70 + 0.05

KWG Res KWG 8322 0.10 0.08 0.09 + 0.01

Noront Res NOT 7602 0.94 0.60 0.85 + 0.15

Metals Ck Res MEK 6245 0.11 0.05 0.09 + 0.03

Unigold UGD 5261 0.12 0.09 0.12 – 0.01

TSX-V greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Metropolitn Mg MNZ 73 0.28 0.13 0.27 + 170.0

Cougar Mnls COU 252 0.02 0.01 0.02 + 100.0

Maxim Res MXM 114 0.20 0.12 0.20 + 81.8

Expedition Mng EXU 788 0.15 0.08 0.15 + 66.6

Odin Mining ODN 50 0.24 0.20 0.24 + 60.0

Northrock Res NRK 28 0.22 0.16 0.22 + 57.1

Artha Res AHC 163 0.14 0.08 0.14 + 55.5

Auro Res ARU 4064 0.23 0.12 0.20 + 53.8

Everett Minls EAR 1400 0.03 0.02 0.03 + 50.0

Metals Ck Res MEK 6245 0.11 0.05 0.09 + 50.0

Terrax Minls TXR 1963 0.22 0.09 0.12 – 45.4

GMV Minerals GMV 2474 0.28 0.12 0.17 – 41.3

Searchgold Res RSG 570 0.12 0.01 0.09 – 40.0

Champion Bear CBA 224 0.22 0.16 0.16 – 38.4

Pan Am Lithium PL 51 0.13 0.10 0.10 – 33.3

Sennen Res SN 49 0.20 0.19 0.19 – 32.1

Dorato Res DRI 2112 0.12 0.07 0.09 – 30.7

Emgold Mng EMR 3657 0.19 0.13 0.14 – 30.0

Pancontl Uran PUC 231 0.15 0.10 0.12 – 29.4

Metalcorp MTC 319 0.05 0.05 0.05 – 28.5

TSX-V greatest value change

WEEK

VOLUME CLOSE CHANGE

Verde Potash NPK 147583 7.60 + 1.40

Lumina Copper LCC 205051 9.35 + 0.95

Maudore Minls MAO 691248 5.38 + 0.50

Loncor Res LN 40650 1.99 + 0.47

Bear Creek Mng BCM 1089448 4.33 + 0.33

Atacama Pac Gd ATM 71700 4.00 + 0.30

Brazil Res BRI 147784 1.39 + 0.27

Red Eagle Mng RD 3960234 1.02 + 0.27

Pac Booker Min BKM 45513 8.80 + 0.25

Gold Canyon GCU 1582424 3.18 + 0.23

Atac Res ATC 1347248 3.94 – 0.43

Tasman Metals TSM 578139 2.91 – 0.40

Prophecy Plat NKL 1077635 3.15 – 0.35

Silver Range R SNG 145901 1.05 – 0.30

Batero Gold BAT 633744 2.21 – 0.29

Anfield Nickel ANF 153198 4.86 – 0.29

Quest Rare Mnl QRM 636780 3.28 – 0.25

Blue Gold Mng BGX 768500 0.88 – 0.22

Olivut Res OLV 151723 1.20 – 0.20

Pac Wildcat Re PAW 280328 0.49 – 0.16

U.S. Markets

Continuing drama in Europe over Greece’s bailout pushed down U.S. equities and brought an end to the S&P 500’s four weeks of back-to-back gains. The S&P 500 Index dropped 2.48% to 1,253.23 points, while the Dow Jones Industrial Average slid 2.03% to 11,983.24 points. The Philadelphia Gold and Silver Index inched up 0.48% to 208.97 points.

Shares of Royal Gold surged US$6.74 to US$79.29 on news of record financial results for the first quarter of fiscal year 2012. Net income attributable to Royal Gold’s shareholders reached US$22.5 million, or 41¢ per share, on royalty revenue of US$64.5 million for the first quarter of fiscal 2012. That compares to net income of US$11.8 million, or 22¢ per share, on a royalty revenue of US$45.3 million in this fiscal year’s first quarter. The 42% jump in revenue was primarily owing to higher metal prices, increased production at its Andacollo, Voisey’s Bay and Penasquito properties and new revenue from Holt and Canadian Malartic.

Despite torrential rains that flooded its flagship Loulo-Gounkoto complex in Mali during August, Randgold Resources maintained gold production in the third quarter and increased its quarterly profit by 29% to US$122.9 million on an adjusted basis. The company’s shares climbed US$6.52 to US$118.66.

Coal producer Alpha Natural Resources‘ shares gained US$1.53 to US$28.09. Third-quarter net income reached US$66.4 million, or 29¢ per diluted share, compared to net income of $31.9 million, or 27¢ per diluted share, for the third quarter last year. Coal revenues were higher than the year-ago period primarily because of the first full quarter of shipments included from legacy Massey operations.

On the negative side of the ledger, Walter Energy slumped US$5.50 to close the week at US$75.63. The company’s third-quarter earnings fell to US$76.2 million, or US$1.21 per share, from US$136.2 million, or US$2.55 per share, in the year-earlier quarter. Walter Energy blamed higher costs, lower selling and general and administrative costs, which more than doubled to US$43.1 million in the third quarter.

U.S. most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Alcoa* AA 164318 11.34 10.05 10.93 – 0.61

Freeport McMo* FCX 114134 41.63 36.52 40.32 – 2.48

Alpha Nat Res* ANR 60269 28.83 21.35 28.09 + 1.53

Hecla Mining* HL 43448 6.59 5.70 6.53 0.00

Newmont Mng* NEM 42830 69.54 63.09 69.38 + 0.89

Potash C S
ask* POT 42485 49.33 44.56 48.05 – 1.92

Peabody Enrgy* BTU 38271 45.69 39.48 43.57 – 3.19

Arch Coal* ACI 37872 19.65 16.34 18.12 – 2.10

Barrick Gold* ABX 35327 52.04 47.19 51.42 + 0.57

Kinross Gold* KGC 34973 14.92 13.61 14.33 – 0.38

U.S. greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Cream Mnrls* CRMXF 551 0.28 0.19 0.26 + 30.0

Infrastrc Mat* IFAM 344 0.10 0.08 0.10 + 25.0

Silver Dragon* SDRG 2965 0.07 0.05 0.06 + 20.0

Mountain Prov* MDM 55 4.85 3.75 4.68 + 19.6

Geovic Mng* GVCM 187 0.32 0.24 0.29 + 16.0

Primero Mng* PPP 468 3.45 2.69 3.38 + 14.5

Anooraq Res* ANO 260 0.60 0.51 0.60 + 13.2

Loncor Res* LON 15 1.87 1.60 1.80 + 12.5

Lake Shore Gd* LSG 708 1.86 1.37 1.77 + 9.2

Nevsun Res* NSU 4033 5.96 4.94 5.92 + 9.2

America West* AWSR 136 0.80 0.50 0.54 – 27.0

Radius Gold* RDUFF 45 0.44 0.38 0.39 – 15.2

Uranium Res* URRE 4545 1.28 1.01 1.11 – 14.6

Habanero Res* HBNRF 15 0.08 0.06 0.06 – 14.2

Gold Am Mng* SILA 242 0.08 0.06 0.06 – 14.2

Kobex Mnls* KXM 96 0.62 0.56 0.56 – 13.8

Ur-Energy* URG 483 1.30 1.09 1.15 – 12.8

Intrepid Pots* IPI 1719 29.47 25.43 26.24 – 12.1

Douglas Lk Ml* DLKM 401 0.20 0.15 0.17 – 10.5

Tri-Valley* TIV 1352 0.19 0.16 0.17 – 10.5

U.S. greatest value change

WEEK

VOLUME CLOSE CHANGE

Royal Gold* RGLD 4452550 79.29 + 6.74

Randgold Res* GOLD 3970720 118.66 + 6.52

Agnico-Eagle* AEM 10832972 45.40 + 1.67

Goldcorp* GG 28396412 51.70 + 1.64

Alpha Nat Res* ANR 60268562 28.09 + 1.53

Ivanhoe Mines* IVN 15497253 22.38 + 1.39

Minefinders* MFN 3659957 15.70 + 0.90

Newmont Mng* NEM 42830190 69.38 + 0.89

Mountain Prov* MDM 55493 4.68 + 0.77

Natural Rs Pt* NRP 294939 30.09 + 0.73

Agrium* AGU 2778152 78.40 – 5.52

Walter Energy* WLT 2537988 75.63 – 5.50

BHP Billi-BHP* BHP 26391603 79.00 – 4.15

Mosaic* MOS 26814423 58.09 – 3.82

Intrepid Pots* IPI 1718509 26.24 – 3.64

BHP Billi-BBL* BBL 8684432 64.21 – 3.25

Peabody Enrgy* BTU 38271061 43.57 – 3.19

Teck B* TCK 23121555 38.84 – 2.97

Freeport McMo* FCX 114133830 40.32 – 2.48

Arch Coal* ACI 37871933 18.12 – 2.10

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