Market news

Toronto Stock Exchange

Market volatility continued to reign supreme as the S&P/TSX Composite Index bounced back from a previous period sell-off and surged 403 points to close at 12,075.09 points. 

The bounce back came after markets got past poor demand for German bonds and noticed European leaders’ progress on the debt crisis. Since progress was tied to the European Central Bank’s increased likelihood of turning to quantitative easing, the metal became a play on inflation fears and gold prices rose US$66 to US$1,751.30. 

The renewed interest in the yellow metal bumped the Global Gold Index up 9 points to 408.33 points. 

The Capped Diversified Metals & Mining Index rose 83 points to 1,087.02 points as copper rallied to US$3.57 per lb. Aluminum, nickel, lead and zinc prices were also higher, while the price of tin fell to US$9.04 per tonne. 

The market applauded Moneta Porcupine Mines‘ resource estimate for the three zones at its Golden Highway project east of Timmins. The company has 33.5 million tonnes of indicated resources grading 1 gram gold for 1.07 million oz. gold, and 47.8 million tonnes grading 1.35 grams gold for 2.07 oz. gold. Those numbers were strong enough to bolster the company’s market cap by 44%. Shares closed out the period trading for 23¢.

Pretium Resources also released stellar resource results and the market sent its shares up nearly as much as Moneta’s. Pretium’s shares climbed 43% to $12.02 after releasing a resource update from its Brucejack project in northern B.C. The project has measured and indicated resources of 9.3 million tonnes grading 16.9 grams gold and 105.6 grams silver, for 5.06 million oz. gold and 31.6 million oz. silver. The company says a feasibility study for the project will soon get underway. 

Kimber Resources saw its shares climb 23% to $1.24 after announcing drill results from the Carmen deposit at its Monterde project in Mexico. Results were highlighted by 17 metres grading 5.3 grams gold per tonne and 278.6 grams silver. Results came from one of three holes that were drilled with an eye toward expanding and upgrading mineral resources at the deposit. 

Karnalyte Resources shares didn’t fare so well. The potash company – which is developing a mineral deposit in Saskatchewan – lost 12% of its market cap for the period. On Nov. 30 Karnalyte announced a bought-financing deal that will see the issuance of 8.65 million shares at $13.30 a piece. The deal will raise $115 million and fund the initial building phase of its Wynyard Carnallite project, which is expected to produce 625,000 tonnes of potash per year. First-phase building is anticipated for early 2012, with capital expenditure estimated at $593 million.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Eastern PlatinELR442500.600.550.59+0.02

Orbite AlumnaeORT254883.812.682.89+0.37

Kinross GoldK2330614.4813.3013.98+0.60

Allana PotashAAA208481.141.041.080.00

PlatminPPN202580.190.170.190.00

Cline MngCMK169641.771.541.66+0.10

Barrick GoldABX1654754.0550.7851.88+1.88

Lundin MngLUN139674.153.664.03+0.48

Hathor ExplHAT137324.734.684.69-0.36

GoldcorpG1370655.0050.5952.33+1.95

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Moneta PorcpnME21870.230.170.23+43.7

Pretium ResPVG441812.599.6612.02+43.4

Strathmore MnlSTM8730.470.370.47+30.5

Mines ManagmntMGT732.492.142.43+29.9

PC GoldPKL3190.380.300.38+26.6

Alexis MinlsAMC59970.050.050.05+25.0

TriAusMinTOR4810.100.090.10+25.0

OrocobreORL3451.751.331.70+23.1

Intrepid MnrlIAU10861.331.071.29+22.8

Kimber ResKBR2041.381.001.24+22.7

Lipari EnergyLIP6090.980.820.82-17.1

NoventaNTA1210.280.180.25-13.7

Frontier Rr ErFRO1301.221.051.05-13.2

Rio Verde MnlsRVD4450.400.330.35-12.5

Revolution ResRV7200.410.350.36-12.2

Karnalyte ResKRN41514.9512.5012.95-12.2

Golden PeaksGL1560.330.270.29-12.1

Polar Star MngPSR3120.350.300.30-11.7

Minco SilverMSV9701.751.461.46-11.5

Great Basin GoGBG114511.130.880.95-11.2

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Inmet MiningIMN166912960.20+9.14

Walter EnergyWLT1297373.08+6.75

Teck BTCKB1158407437.87+5.21

Pretium ResPVG441804112.02+3.64

First QuantumFM972877220.00+3.02

Centerra GoldCG335714622.63+3.00

First MajesticFR309602216.96+2.31

Royal GoldRGL2738780.98+2.27

Labdr I-Ore RoLIF_U73091335.05+2.20

Coeur d AleneCDM16891829.12+2.18

Karnalyte ResKRN41536712.95-1.80

Horizns G BearHGD25702827.51-0.79

Hathor ExplHAT137322534.69-0.36

Franco-NevadaFNV321602441.98-0.32

Rare Elemnt RsRES1999305.23-0.31

Mountain ProvMPV1825284.32-0.21

Minco SilverMSV9701151.46-0.19

Lipari EnergyLIP6091000.82-0.17

CIC EnergyELC10363801.48-0.17

Central Gold-TGTU_U2628866.94-0.16

TSX Venture Exchange

The erratic S&P/TSX Venture Composite Index climbed 51.74 points in the Nov. 28 to Dec. 2 trading period to close at 1,556.88 points. The upswing recuperated half the loss from the week before, but still underscores the continued market volitility. Trading volume kept in-line with recent weeks at an average of 88.5 million shares traded daily. 

Verde Potash rallied on news that it could produce conventional potash from its vast resources of verdete slate in Brazil. The company has proved its financial viability to produce a product it calls “thermopotash” from the slate, but the pilot plant confirms conventional potash production for the first time. Verde expects to release estimated capital and operating costs for the process next year. Verde traded as high as $7.85 in the period before ending at $7.20 for a $1 gain, making it the highest value gainer of the period.

Peru-focused Rio Alto Mining hit a 52-week trading high of $3.57 in the period before ending up 52¢ at $3.49 on 8.6 million shares traded. The company announced that it would be meeting its production guidance of 50,000 oz. to 60,000 oz. gold from its La Arena mine after a blockade in September halted mine development activities, though it will hit the low edge of the guidance. The stock price gains, however, came on no apparent news before the production update was released. The Arena mine went into production in May and operates at 24,000 tonnes per day. 

Trelawney Mining and Exploration was up 40¢ to $3.50 on 8.1 million shares traded, after the junior gold company announced it had completed a $25.9-million financing. Despite its share price, Trelawney sold 5.52 million flow-through common shares at $4.70 apiece. Additionally, the company also completed its acquisition of Augen Gold in early November and more recently finished its option agreement on the Chester gold property. Trelawney holds 70% of the Chester 1 property while Treelawn Investment holds a 30% free-carried net profit interest and Trelawney hold a 92.5% interest in Chester 3, with the remaining 7.5% also held by Treelawn.

Shear Diamonds continued its rapid climb, up an additional 14¢, or 62%, to end the period at 37¢ after climbing 9¢ the week before. Trading volume was strong again with 5.4 million shares changing hands, and again the company released no news. The diamond market has, however, seen heightened attention following Anglo American’s $5.1-billion acquisition of the Oppenheimer family’s stake in De Beers, and BHP Billiton’s announcement th
at it was considering the sale of its diamond interests. Shear controls the past-producing Jericho diamond mine in Nunavut.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Iberian MnlsIZN229851.101.091.090.00

NWM MngNWM141850.090.080.080.00

Rio Alto MngRIO86133.573.033.49+0.52

Habanero ResHAO83060.110.070.09+0.01

Trelawney M&ExTRR80943.603.153.50+0.40

Cap-Ex VentCEV67391.200.891.18+0.13

Encanto PotashEPO60210.300.250.28+0.01

Shear DiamondsSRM54000.470.250.37+0.15

Corsa CoalCSO47520.580.500.56+0.03

SilverCrest MnSVL45012.261.912.18+0.21

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Lund GoldLGD2700.050.030.05+150.0

Sinchao MtlsSMZ3090.120.090.12+100.0

Pro-Or Mng ResPOI14760.340.190.32+68.4

Shear DiamondsSRM54000.470.250.37+68.1

Galahad MtlsGAX6990.050.040.05+66.6

Stratabd MnrSB2570.110.070.08+60.0

Hudson ResHUD7290.680.400.64+56.1

Eastfield ResETF350.140.080.14+55.5

Gold Reach ResGRV6300.700.440.70+55.5

Carlin GoldCGD6170.140.080.14+55.5

Dawson GoldDYU2660.100.060.06-68.4

Infinito GoldIG10080.180.050.06-68.4

Rome ResRMR390.260.170.17-43.3

Cooper MnlsCQ3050.160.100.10-41.1

Torch Rvr ResTCR890.050.030.04-33.3

Pac Arc ResPAV1150.100.070.10-33.3

Silvore Fox MlSFX9220.100.080.08-33.3

Maxim ResMXM1270.170.120.12-33.3

Solid Gold ResSLD11310.070.050.05-28.5

Brigadier GoldBRG1770.050.050.05-28.5

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Verde PotashNPK5293167.20+1.00

Lumina CopperLCC40262911.20+0.88

Atacama Pac GdATM2650004.40+0.65

Bear Creek MngBCM10000384.75+0.56

Rio Alto MngRIO86125663.49+0.52

Tasman MetalsTSM3715222.50+0.47

Atac ResATC9288503.28+0.47

Energold DrillEGD9282504.17+0.44

Chesapeake GldCKG3844012.58+0.41

Trelawney M&ExTRR80940603.50+0.40

Pac Booker MinBKM241678.49-0.66

Maudore MinlsMAO554835.67-0.44

Great Quest MeGQ1891461.91-0.32

Loncor ResLN735001.50-0.25

Red Eagle MngRD9695500.71-0.20

CB GoldCBJ21021711.35-0.17

Astur GoldAST925481.53-0.16

Cayden ResCYD4647621.64-0.14

Infinito GoldIG10084000.06-0.13

Dawson GoldDYU2655010.06-0.13

U.S. markets

Equity markets in the U.S. rallied sharply in the wake of better-than-expected employment figures and encouraging news from Europe. The U.S. unemployment rate in November dropped to 8.6% in a two-and-a-half-year low, down from 9% in October, while six major central banks agreed to provide cheaper dollar loans to European banks. In addition, the head of the European central bank said the bank is prepared to take more forceful steps to tackle the debt crisis if political leaders agree to tighter budget controls at the next summit on Dec. 9. 

The Dow Jones Industrial Average climbed 7.01% to 12,019.42 points and the S&P 500 Index jumped 7.39% to 1,244.28 points. Nasdaq advanced 7.59% to 2,626.93 points while the Philadelphia Gold and Silver Index increased 7.84% to close at 202.28 points.

Most coal stocks got a lift from the news that the world’s central banks are coordinating their actions to boost liquidity to ease Europe’s sovereign debt crisis. Alpha Natural Resources was the third most actively traded stock, surging 28.1% to US$24.11, while Peabody Energy gained US$5.44 to US$38.22 and Patriot Coal rose 23.8% to US$10.04. 

News that BHP Billiton was reviewing its diamond business propelled the company’s shares up US$8.98 to close at US$75.30. The world’s largest miner by market cap said on Nov. 29 that it is deciding whether it should sell all or part of its diamond interests, which make up a non-core division of the company. BHP holds 80% of the Ekati diamond mine in the Northwest Territories and 51% of the Chidliak diamond project on Baffin Island.

Shares of Molycorp surged US$5.53, or 20.5%, to US$32.51 following news that it had formed a joint venture with Daido Steel and Mitsubishi to make and sell next-generation neodymium-iron-boron (NdFeB) permanent rare earth magnets. Molycorp will hold 30% of the new joint venture and Daido and Mitsubishi will hold 35.5% and 34.5%, respectively. The venture will build an initial 500-tonne-per year manufacturing facility in Nakatsugawa, Japan, with operations expected to start by January 2013.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA13730010.089.269.91+0.96

Freeport McMo*FCX8242740.3735.3939.30+5.48

Alpha Nat Res*ANR4887825.1719.8224.11+5.30

Arch Coal*ACI3842116.6814.0216.20+2.68

Potash C Sask*POT3384644.5041.9742.29+1.62

Kinross Gold*KGC3374414.2612.8813.75+1.01

Hecla Mining*HL335006.395.485.97+0.67

Barrick Gold*ABX3243053.1449.2251.02+3.58

Mosaic*MOS2899054.2849.9351.21+1.91

Peabody Enrgy*BTU2874139.5034.0038.22+5.44

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Habanero Res*HBNRF380.090.070.09+50.0

Mines Managem*MGN16522.511.912.33+28.7

Alpha Nat Res*ANR4887825.1719.8224.11+28.1

Linux Gold*LNXGF1230.050.030.05+25.0

Mechel*MTL383211.319.3111.12+23.9

Patriot Coal*PCX471210.508.4410.04+23.8

Uranerz Energ*URZ20222.011.611.88+22.8

Kimber Res*KBX12011.340.961.21+21.0

Rubicon Mnls*RBY75804.343.343.96+20.7

Molycorp*MCP2135934.9527.8832.51+20.5

Legend Intl H*LGDI27250.280.170.17-39.2

Tombstone Exp*TMBXF24350.050.030.03-25.0

Golden Phoen*GPXM17760.090.070.08-11.1

Santa Fe Gold*SFEG2970.950.800.87-9.3

Infrastrc Mat*IFAM2000.100.100.10-9.0

Quaterra Res*QMM2100.760.670.70-7.8

Douglas Lk Ml*DLKM18770.130.100.12-7.6

Buenaventura*BVN661440.8336.9037.00-6.3

Dejour Enterp*DEJ2590.360.320.33-5.7

Oromin Expl*OLEPF1270.860.780.80-4.7

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

BHP Billi-BHP*BHP1796893675.30+8.98

Cliffs Nat Rs*CLF1575282568.34+8.62

Walter Energy*WLT150363371.68+8.55

BHP Billi-BBL*BBL971300761.76+7.83

Compass Mnls*CMP32011075.06+6.09

Teck B*TCK1776119237.22+5.91

Molycorp*MCP2135892132.51+5.53

Alliance Rs P*ARLP26097174.15+5.48

Freeport McMo*FCX8242685839.30+5.48

Peabody Enrgy*BTU2874111438.22+5.44

Buenaventura*BVN661361637.00-2.52

Legend Intl H*LGDI27250210.17-0.11

DRDGOLD*DROOY4188086.32-0.11

Pac Booker Mn*PBM245888.25-0.10

Santa Fe Gold*SFEG2968240.87-0.09

Quaterra Res*QMM2099080.70-0.06

US Antimony*UAMY2581702.15-0.05

Oromin Expl*OLEPF1265590.80-0.04

El Capitan Pr*ECPN14368750.44-0.02

Dejour Enterp*DEJ2588420.33-0.02

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