Toronto Stock Exchange
The Nov. 14-18 trading period saw the S&P/TSX Composite Index shed 384.41 points to 11,892.44 points. Similarly, the Global Gold Index dropped 28.96 points to 401.17 points as the price of gold sank US$63.70 per oz. to US$1,724.80 per oz. Following the downward trend, the Capped Diversified Metals & Mining Index plummeted 75.45 points to 1,009.72 points.
The week’s biggest percent gainer was Polaris Minerals, jumping 66.6% to 40¢ after reporting its third-quarter financials. The supplier of construction aggregates to coastal city markets in California, Hawaii and B.C., and saw higher sales volume and revenue of 484,000 tons and US$6.77 million. But it still finished in the red, with a net loss of US$3.5 million.
Though coming in second for percent gain, Jaguar Mining topped the chart for value gains, finishing up $2.18, or 38.1%, to $7.89. Reuters reported on Nov. 16 that Shandong Gold Group offered to buy the Brazil-focused gold producer for US$1 billion. That works out to US$9.30 per share in cash, or an astounding 73% premium to Jaguar’s Nov. 15 closing price. If Shandong Gold succeeds, it would mark one of the biggest overseas acquisitions by a Chinese gold miner. In response, Jaguar confirmed that it received several proposals over the past few weeks, noting that none go past the exploratory stage.
Mariana Resources advanced 33.3% to 20¢ after announcing that AngloGold Ashanti will buy a 19.9% stake in the company for £5.4 million, or US$8.5 million. AngloGold will subscribe to 45 million Mariana shares at 12 pence each, representing a lofty 41% premium to Mariana’s Nov. 16 closing price on the London Stock Exchange’s AIM growing companies’ market. Mariana will use proceeds from the subscription to help develop its Las Calandrias and Sierra Blanca gold-silver projects in Argentina’s Santa Cruz province.
After announcing intentions to shake up management, NovaGold Resources‘ shares gained $1.89 to end at $11.23 per share on 4.5 million shares traded. Rick Van Nieuwenhuyse, the company’s founder, president and CEO, will step down and take the helm of the company’s newly formed subsidiary, NovaCopper, which owns the Ambler polymetallic project in Alaska. Gregory Lang will fill Nieuwenhuyse’s shoes. NovaGold is exploring opportunities to sell all or part of its 50% share in the Galore Creek copper-gold-silver project in B.C. to help fund its Donlin gold project in Alaska.
The bidding war for Hathor Exploration and its uranium assets in Saskatchewan climaxed, with Rio Tinto edging out Cameco‘s revised offer on Nov. 17. Rio has increased its all-cash offer to $4.70 per share, outdoing Cameco’s $4.50-per-share bid. Rio Tinto values the junior at $654 million. Hathor closed up 59¢ to $5.06.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Hathor ExplHAT410585.094.755.06+0.59
Lake Shore GldLSG408781.841.551.58-0.14
Eastern PlatinELR275630.700.600.62-0.07
Romarco MnrlsR193751.000.920.92-0.04
Allana PotashAAA174601.241.041.200.00
Uranium OneUUU159592.792.402.49-0.21
Kinross GoldK1571614.6313.1413.17-1.25
Crocodile GoldCRK152660.390.320.34-0.07
Lundin MngLUN149183.853.433.46-0.37
Mercator MnlsML144391.821.611.64-0.16
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Polaris MinlsPLS20120.480.210.40+66.6
Jaguar MngJAG83108.365.427.89+38.1
Mariana ResMRY3540.220.150.20+33.3
CaNickel MngCML16110.060.050.05+25.0
NovaGold ResNG455211.828.8211.23+20.2
Cardero ResCDU16081.311.091.25+14.6
Victory NickelNI7460.090.070.08+14.2
Horizns G BearHGD29638.016.897.94+14.0
Golden PeaksGL2070.350.280.34+13.3
Hathor ExplHAT410585.094.755.06+13.2
IverniaIVW30920.110.060.06-33.3
Stornoway DiamSWY21081.440.981.04-25.1
Avion GoldAVR141962.241.631.68-24.3
Mawson WestMWE1161.030.790.79-23.3
Northland ResNAU9751.281.021.03-20.7
Eco Oro MnlsEOM4742.892.222.26-20.4
White Tigr GldWTG32391.050.810.83-20.1
Polar Star MngPSR2760.400.320.32-20.0
PlatminPPN67460.250.190.20-20.0
Velocity MinlsVLC630.200.160.17-19.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Jaguar MngJAG83097017.89+2.18
NovaGold ResNG455166511.23+1.89
Horizns G BearHGD29628937.94+0.98
Walter EnergyWLT3476373.98+0.90
Hathor ExplHAT410582795.06+0.59
Revett MnlsRVM5269964.98+0.57
Gabriel ResGBU26482277.53+0.35
Virginia MinesVGQ733878.70+0.20
Mines ManagmntMGT1253572.22+0.18
Cardero ResCDU16081271.25+0.16
AgriumAGU535834872.63-7.00
Inmet MiningIMN121397053.66-6.25
Detour GoldDGC463995827.21-4.96
Newmont MngNMC2064467.61-3.97
Royal GoldRGL1743878.40-3.96
Barrick GoldABX1218870050.17-3.55
Silver WheatonSLW884383033.24-3.41
Teck BTCKB1369086635.13-3.18
Potash Cp SaskPOT1117445344.44-3.01
GoldcorpG1146009051.89-2.66
TSX Venture Exchange
The S&P/TSX Venture Composite Index was down again in the Nov. 14-18 period, slipping 33.64 points to end at 1,607.67 points after three days of losses outweighed two days of gains. Average daily trading volume was up compared with the week before at 91.5 million, though it fluctuated widely, from 63.6 million shares on Nov. 14 to 161.6 million shares on Nov. 17.
The major bump in activity on Nov. 17 was followed by a spike in trading of Iberian Minerals. The company saw 65.5 million shares move after Trafigura Beheer announced plans to buy full control of the company. Trafigura, already Iberian’s largest shareholder with 48% of the 452.5 million shares out, has offered to acquire the rest for $1.10 each in a 39% premium to the stock price the day before the bid. Iberian’s stock price climbed 28¢ during the period to $1.12. The board and other significant shareholders represented 17% of Iberian shares endorsing the deal, but some analysts questioned the offer’s fair value.
Lumina Copper, which has been steadily climbing from $5.50 since early October, surged to a brief high of $12 after announcing an interim resource update on its flagship Taca Taca project. The Taca Taca project is estimated to contain 516 million indicated tonnes grading 0.58% copper, 0.12 gram gold per tonne and 0.018% molybdenum, plus 880 million inferred tonnes grading 0.43% copper, 0.08 gram gold and 0.015% molybdenum. The project previously had no indicated resources and 841 million inferred tonnes, while Lumina outlined an initial oxide-specific resource in the new estimate. In the period, the company’s stock jumped from $9.90 to $12 before ending at $10.66, up 76¢ to still take the biggest value-gainer title.
The continued bidding war for Hathor Exploration has drawn attention to the Athabasca basin’s other advanced projects. Fission Energy, with its Waterbury uranium project sitting on the western border of Hathor’s Roughrider project, climbed 16¢ to end at 98¢, up from 50¢ in August before the first bid for Hathor. Fission just closed a $10-million financing at 85¢. The company hit a brief trading high of $1.03 in the period with 9.7 million shares traded, but is still off its 52-week high of $1.50 reached before the Fukushima disaster in March.
Scantly traded Nevgold Resource< /strong> saw a one-day 6.5¢ boost to 19.5¢ on almost 80,000 shares after Silver Predator announced plans to take over the company. In a letter of intent, Silver Predator has offered 0.5 of a share for each Nevgold share. Nathan Tewalt, Nevgold’s CEO, would become CEO of the combined Silver Predator entity. Nevgold has gold, silver and copper prospects in Nevada, Idaho and Manitoba, while Silver Predator has prospects in Nevada and the Yukon. Silver Predator’s share price dropped 2¢ to 40¢ during the period.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Iberian MnlsIZN654671.140.791.12+0.28
Canaco ResCAN140441.531.201.25-0.14
Fission EnergyFIS97141.030.840.98+0.16
Largo ResLGO87830.370.310.34-0.01
Royal CoalRDA78920.080.050.05-0.02
Cap-Ex VentCEV62970.990.700.98+0.22
SilverCrest MnSVL59592.071.721.95+0.23
PMI GoldPMV56851.421.141.17+0.04
Wildcat ExplWEL47680.030.020.030.00
Cedar Mtn ExplCED44390.090.060.070.00
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Am Cons MinlsAJC24280.060.030.05+66.6
Vendome ResVDR5580.140.100.14+55.5
Belmont ResBEA400.240.160.23+53.3
Firesteel ResFTR2210.090.060.09+50.0
Fieldex ExplFLX6040.090.060.09+50.0
Alto VentATV7370.030.020.03+50.0
Honey Badger ETUF1660.060.040.06+50.0
Cogitore ResWOO770.190.140.19+46.1
Nevgold ResNDG860.230.170.19+46.1
Mazorro ResMZO13690.190.120.17+41.6
Silver PursuitSPF3400.140.100.11-47.6
North Am NicklNAN14030.220.140.14-36.3
Pancontl UranPUC6550.140.090.09-35.7
NV GoldNVX1320.300.200.20-35.4
Champlain ResCPL3470.050.040.04-33.3
Zinco MngZIM120.300.200.20-33.3
Auramex ResAUX2010.030.020.02-33.3
Westcan UranWCU8790.050.040.04-33.3
Pan Global ResPGZ130.800.600.60-33.3
Cenit CorpCNT6280.090.080.08-33.3
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Lumina CopperLCC81293910.66+0.76
Anfield NickelANF5043245.51+0.75
Dia Bras ExplDIB1136062.51+0.38
Maudore MinlsMAO2199865.95+0.30
Iberian MnlsIZN654665701.12+0.28
Midway GoldMDW2009412.38+0.26
SilverCrest MnSVL59591911.95+0.23
Cap-Ex VentCEV62969740.98+0.22
Pac Booker MinBKM471619.10+0.20
Mirasol ResMRZ2341903.80+0.16
Quest Rare MnlQRM4634452.95-0.66
Tasman MetalsTSM5751492.40-0.61
Atac ResATC12910753.05-0.59
Gold CanyonGCU8775692.77-0.38
Pan Global ResPGZ125000.60-0.30
Prophecy PlatNKL4982692.73-0.26
Orko SilverOK6273092.05-0.25
Verde PotashNPK807957.16-0.24
Newstrike CapNES7596082.80-0.23
IMPACT SilverIPT1978941.80-0.23
U.S. Markets
U.S. stocks posted their worst week in two months with the Dow Jones Industrial Average dropping 2.94%, or 357.52 points, to 11,796.16 points, and the S&P 500 Index down 3.8%, or 48.2 points, to 1,215.65 points. The Nasdaq Composite Index was down 106.25 points, or 3.97%, to 2,572.50 points while the Philadelphia Gold and Silver Index lost 16.39 points, or 7.72%, to close the week at 196.04 points. Regime changes in Greece and Italy failed to reassure markets or bring bond yields much lower. In the U.S. a bipartisan congressional committee failed to agree on how to cut US$1.2 trillion from the budget over the next decade.
NovaGold Resources topped the list of value gains with a US$1.73 advance to US$10.95 after announcing plans to sell its 50% stake in the Galore Creek copper-gold-silver project in B.C. and spin off its Ambler copper-zinc-gold-silver project in Alaska into a new company led by Rick Van Nieuwenhuyse, NovaGold’s president and CEO. Gregory Lang of Barrick Gold North America will take over from Van Nieuwenhuyse.
A favourable decision from the Ninth Circuit Court of Appeals on Revett Minerals‘ Rock Creek project sent the company’s shares up 47¢, or 10.7%, to US$4.86. The court concluded that the Fish and Wildlife Service’s determination that the mine would entail “no adverse modification” to the critical habitat of bull trout and result in “no jeopardy” to grizzly bears. Revett is advancing the Rock Creek project in northwestern Montana, a development-stage deposit containing an inferred resource of 229 million oz. silver and 2 billon lbs. copper.
Cardero Resource rose 16¢ to US$1.22 after signing a letter of intent with Anglo Pacific Group to acquire its Trefi metallurgical coal deposit in the Peace River coalfield of northeastern B.C. The deposit has a 43-101-compliant resource of 39.1 million tonnes measured and indicated and 51 million tonnes inferred resources. The deposit is within 60 km of Cardero’s flagship metallurgical coal deposit at Carbon Creek, and 65 km from its proposed rail load-out site.
On the negative side of the ledger, sliding prices for rare earths sent shares of Molycorp down US$5.09 to US$28.36 per share.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA14369510.639.589.69-0.91
Freeport McMo*FCX9507540.2136.4936.94-2.92
Alpha Nat Res*ANR4800826.7022.0722.23-4.16
Mosaic*MOS3650158.5650.3452.86-4.92
NovaGold Res*NG3422911.538.5910.95+1.73
Potash C Sask*POT3240447.0742.3143.30-3.56
Kinross Gold*KGC3040414.3812.8012.83-1.43
Arch Coal*ACI3020817.1914.7314.87-2.09
Peabody Enrgy*BTU3000540.9736.0336.06-4.37
Hecla Mining*HL278676.725.935.97-0.71
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Linux Gold*LNXGF760.050.030.05+25.0
NovaGold Res*NG3422911.538.5910.95+18.7
Cardero Res*CDY9251.281.061.22+15.0
Revett Mnls*RVM15015.904.134.86+10.7
Infrastrc Mat*IFAM3790.120.080.12+9.0
Midway Gold*MDW7422.371.992.32+8.9
China Shen Zh*SHZ2272.722.222.36+8.2
Mines Managem*MGN10822.411.852.20+6.2
Loncor Res*LON131.751.401.75+6.0
Denison Mines*DNN4921.511.421.51+3.4
Quest Rare Mn*QRM9493.562.752.85-19.9
Mechel*MTL339312.5910.0910.23-18.4
Keegan Res*KGN2935.564.524.53-18.0
Geovic Mng*GVCM3350.300.220.23-17.8
Avino Silver*ASM852.111.731.73-17.2
Rare Elemt Re*REE30896.755.455.55-16.7
Uranium Res*URRE41511.090.880.90-16.6
Caledonia Mng*CALVF11050.120.090.10-16.6
Minefinders*MFN912613.8111.1711.37-15.7
Alpha Nat Res*ANR4800826.7022.0722.23-15.7
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
NovaGold Res*NG3422925310.95+1.73
Revett Mnls*RVM15010634.86+0.47
Pac Booker Mn*PBM1077498.84+0.24
Midway Gold*MDW7415262.32+0.19
China Shen Zh*SHZ2265122.36+0.18
Cardero Res*CDY9248431.22+0.16
Mines Managem*MGN10818552.20+0.13
Walter Energy*WLT205322472.12+0.12
Loncor Res*LON134501.75+0.10
MDU Res*MDU376830720.64+0.06
Randgold Res*GOLD2705993111.01-8.28
Agrium*AGU229460370.58-8.08
BHP Billi-BHP*BHP1652771471.92-5.94
BHP Billi-BBL*BBL570881358.64-5.10
Molycorp*MCP2484624528.36-5.09
Newmont Mng*NEM2105083965.46-5.03
Buenaventura*BVN464061939.38-5.00
Mosaic*MOS3650052852.86-4.92
Royal Gold*RGLD284472576.43-4.86
Consol Energy*CNX1619354938.27-4.62
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