Toronto Stock Exchange
Markets sold off during the Dec. 12-15 period just one week after markets were bolstered by an agreement between European Nations to work towards a new treaty, and the TSX Composite was no exception. The index fell 401 points and finished up at 11,504.42 points, with investors worrying that the European central bank would stick to its guns and avoid quantitative easing at all costs.
Concerns that the European central bank wouldn’t print money was bad news for gold, and it fell US$139 to US$1,577.20, breaking through the technical-support level established over the last 12 months. Horizons Gold Bear Exchange Traded Funds consequently became one of the period’s biggest gainers, climbing 20% to finish at $9.43. As expected Gold miners moved in step with the metal, and the S&P/TSX Global Gold Index came off 31 points to finish the period at 363.53 points.
The diversified miners also suffered in the pessimistic environment. The S&P/TSX Capped Diversified Metals & Mining Index was off 96 points to finish up at 1,020.19 points, as prices for copper, aluminum, nickel, tin, lead and zinc all took hits.
Crocodile Gold was the period’s most actively traded mining stock, and also its largest gainer by percentage points. The company saw its share price soar by 32% after word got out that Luxor Capital Group, a New York-based investment company, would make a partial bid. Luxor already owns 20% of Crocodile, which operates gold mines in Australia. Luxor plans to acquire another 215.4 million shares at US56¢ apiece and bring its stake to 85%. The offer represents a 61% premium to the junior’s 20-day volume-weighted average price, but Crocodile said the offer was opportunistic and low, considering the company recently traded at its 52-week low of 32¢.
Ivanhoe Mines became a big loser in the period when investors sold the stock after an arbitrator ruled in favour of one of its largest investors, Rio Tinto. Rio had filed against Ivanhoe over its right maintain an ownership stake without getting diluted by Ivanhoe’s shareholder rights plan. The decision paves the way for Rio to increase its ownership in Ivanhoe to above 50% and gain control of the Oyu Tolgoi copper-gold deposit in Mongolia, without having to pay a hefty takeover premium. Rio will likely move up to just over a 50% stake in Rio in January. Ivanhoe shares were off 25% to $16.70 for the period.
It was all about drilling and length for Golden Peaks, as word that the company had outlined gold mineralization over a 2.3-km strike length sent the company’s shares up 20% to 30¢. The long strike length is associated with the Sondana vein at its Tanoyan project in Indonesia, where drills returned a highlight intercept of 15 metres grading 0.8 gram gold.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Crocodile GoldCRK322490.540.330.49+0.12
PlatminPPN211050.170.120.12-0.04
Kinross GoldK1708413.3811.9112.13-1.48
Barrick GoldABX1659249.9345.6645.79-4.91
Lundin MngLUN153914.003.563.58-0.56
GoldcorpG1249550.1046.4046.93-4.22
Eastern PlatinELR123980.560.500.560.00
Teck BTCKB1238937.5034.2234.43-3.09
Gran ColombiaGCM122620.440.340.35-0.08
Osisko MngOSK1168610.859.189.53-1.29
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Crocodile GoldCRK322490.540.330.49+32.4
White Tigr GldWTG26050.840.540.75+27.1
Horizns G BearHGD34199.478.029.43+21.3
Golden PeaksGL4310.340.220.30+20.0
MigaoMGO12743.703.103.70+19.3
Nuinsco ResNWI2790.090.080.08+14.2
Namibia Rare ENRE18210.490.400.45+12.5
Inspiration MgISM5200.160.100.10+11.1
Powertech UranPWE4800.100.090.10+11.1
Pac NW CapPFN3030.120.110.12+9.0
Horizonte MnlsHZM220.150.100.10-54.5
Homeland EnrgyHEG7440.090.050.06-40.0
Serabi GoldSBI490.140.100.10-28.5
Orezone GoldORE8393.082.252.25-26.7
Silver Bear RsSBR4520.680.430.50-26.4
Dynasty Met&MnDMM3372.682.042.07-26.0
CIC EnergyELC27381.120.840.85-25.4
Eco Oro MnlsEOM4371.801.351.40-25.1
PlatminPPN211050.170.120.12-25.0
Ivanhoe MinesIVN723621.8016.3716.70-24.8
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Horizns G BearHGD34186249.43+1.66
Labdr I-Ore RoLIF_U97400236.05+0.64
MigaoMGO12737403.70+0.60
Major DrillingMDI270940915.58+0.19
White Tigr GldWTG26053640.75+0.16
Crocodile GoldCRK322489680.49+0.12
Aureus MngAUE2107311.04+0.08
Laramide ResLAM5645380.80+0.06
Golden PeaksGL4307460.30+0.05
Namibia Rare ENRE18209000.45+0.05
Royal GoldRGL3027571.57-8.62
Agnico-EagleAEM451533638.00-5.98
Ivanhoe MinesIVN723576816.70-5.52
Barrick GoldABX1659230845.79-4.91
Silver WheatonSLW919913229.39-4.54
Central Gold-TGTU_U3391661.07-4.53
GoldcorpG1249498346.93-4.22
Detour GoldDGC421857424.20-4.21
Coeur d AleneCDM17381725.59-4.18
Newmont MngNMC2145064.50-3.90
TSX Venture Exchange
The S&P/TSX Venture Composite Index had a tough run in the Dec. 12-16 trading period, almost dipping below 1,400 points after four consecutive days of losses before recovering slightly to end the period down 121.2 points, or 6%, at 1,426.11 points. Trading volume was up somewhat with an average of 102.8 million shares changing hands daily.
Fifty-fifty joint-venture partners Regulus Resources and Pachamama Resources were the big standouts in a generally dour week on the market after they released encouraging drill results from their Rio Grande project in Argentina’s Salta province. Standout hole 11-86 hit three main mineralized intervals, including a middle zone of 257 metres carrying 0.53% copper, 1.20 grams gold and 1.59 grams silver, and a lower zone of 120 metres averaging 0.33% copper, 0.34 gram gold and 5.95 grams silver. Pachamama’s share price climbed 57¢, or 146%, to close at 96¢ while Regulus’ share price climbed 58¢, or 114%, to reach $1.09 apiece. The share price spikes brought both companies back to where they traded in September.
Matamec Explorations‘ stock price got a boost after signing a non-binding memorandum of understanding with Toyota Tsusho related to the Kipawa heavy rare earth project in Ontario. The two companies agreed to form a joint venture on Kipawa, with Matamec controlling 51% and Toyota the remainder. Toyota brings technical and financial aid, including the first $17.5 million of a feasibility study, as well as an end-market for the rare earths at the project, while Toyota gets access to heavy rare earths such as dysprosium. Matamec climbed 9¢ to 37¢ with 10.8 million shares traded.
Another week meant another round of good news from Lumina Copper. The Argentina-focused company released more results from Taca Taca, including 580 metres grading 0.88% copper, 0.18 gram gold and 0.02% molybdenum for a 1.1% copper equivalent, and 590 metres averaging 0.57% copper, 0.06 gram gold and 0.01% molybdenum for a 0.66% copper equivalent. The news sent Lumina’s share price up $2.35 to $13.80 to make it by far the highest value climber of the week, while the company had already climbed from below $6 in early October.
Lightly traded shares of Afferro Mining climbed 19¢ to end the period at 80¢ after announcing it would sell its 38.5% interest in the Putu iron ore project for a minimum of US$115 million in cash. Afferro is selling its stake to Severstal, which
will control 100% of the Liberian project. Afferro will use the windfall to advance its flagship Nkout iron ore project in Cameroon, which hosts 944 million indicated tonnes grading 32.7% iron and 1.05 billion inferred tonnes grading 31.6% iron.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Encore Ren ResEZ226800.030.020.030.00
Iberian MnlsIZN145861.091.091.090.00
Matamec ExplMAT92080.420.300.39+0.11
Canaco ResCAN73911.351.071.11-0.28
StrikePoint GdSKP62530.040.030.040.00
China CoalCKO57910.050.020.03-0.01
Rye Patch GoldRPM46400.740.610.68-0.02
KWG ResKWG44330.090.080.080.00
Rio Alto MngRIO41533.403.133.20-0.08
Sandstorm GldSSL40851.331.151.22-0.15
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Pachamama ResPMA7130.850.360.80+105.1
Silver SpruceSSE19980.090.050.09+80.0
Regulus ResREG10030.890.440.87+70.5
Nebu ResNBU11180.080.050.05+66.6
Millstream MinMLM7370.040.030.03+50.0
Uranium NorthUNR7100.100.080.10+42.8
Nortec MnlsNVT3120.120.080.10+42.8
Strongbow ExplSBW4670.140.090.14+40.0
Matamec ExplMAT92080.420.300.39+39.2
Rochester ResRCT8580.040.030.04+33.3
Currie Rose RsCUI26060.050.020.02-60.0
Sea Green CapSGS4580.020.010.01-50.0
Sable ResSAE570.090.080.08-42.8
Indico ResIDI2460.200.120.12-42.8
Goldsource MinGXS1020.460.250.32-38.4
Finlay MinrlsFYL230.090.090.09-35.7
ICN ResICN1500.230.160.16-33.3
Animas ResANI2030.180.130.14-33.3
G4G ResGXG2950.060.040.04-33.3
Kingsman ResKSM7320.030.020.02-33.3
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Lumina CopperLCC68403212.40+0.95
Pachamama ResPMA7126780.80+0.41
Regulus ResREG10029680.87+0.36
Afferro MngAFF2481060.81+0.20
Zimtu CapitalZC235500.98+0.17
Matamec ExplMAT92084250.39+0.11
Astur GoldAST264501.83+0.09
Timberline ResTBR109850.69+0.09
Palladon VentPLL906981.49+0.09
Intigold MinesIGD848000.34+0.05
Bear Creek MngBCM8892733.75-0.99
Atacama Pac GdATM330343.41-0.79
Verde PotashNPK1606806.75-0.74
Prophecy PlatNKL5027641.84-0.58
Atac ResATC26503662.32-0.54
Kaminak GoldKAM31816821.81-0.54
Trelawney M&ExTRR40317212.54-0.53
Chesapeake GldCKG4310111.73-0.52
Quest Rare MnlQRM5485122.35-0.50
Tasman MetalsTSM6396401.70-0.41
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U.S. markets
U.S. equities slipped during the Dec. 12-15 period as investors took in news from Europe about the growing debt crisis.
The Dow Jones Industrial Average fell 315.45 points to 11,868.81 points, while the S&P 500 Index lost 39.44 points to 1,215.75 points. The Nasdaq Composite Index finished down 105.57 points to 2,541.01 points. The Philadelphia Gold and Silver Index dipped 20.08 points to 180.56 points as the spot price for gold lost US$140.70, ending at US$1,570.60 per oz.
Legend International Holdings was the largest percentage gainer, gaining 6% to close up US1¢ at US16¢ on no news. Legend announced in November that it plans to start phosphate rock production and sales operations from its Paradise deposits in Australia.
One of the biggest losers was Ivanhoe Mines, which dropped 25.8% after an arbitrator sided with the company’s largest shareholder, Rio Tinto. The London-based company, which owns 49% of Ivanhoe, claimed that Ivanhoe’s shareholder rights plan will dilute its ownership stake. Rio plans to boost its stake to over 50% to gain more control of the Oyu Tolgoi copper-gold deposit in Mongolia, without launching a full takeover bid. Ivanhoe lost US$5.63 to end at US$16.15 on 31.3 million shares traded.
Alliance Resource Partners, a diversified producer and marketer of steam coal, topped the list of value gains, moving up US30¢ to US$72.53 on no news. Randgold Resources, which was the previous week’s biggest gainer on no news, fell US$10.30 to US$98.21. The company announced on Nov. 28 that it expects problems at its Tongon mine in Côte d’Ivoire to lower its gold production for the fourth quarter.
Royal Gold saw its shares fall US$9.59 to US$69.12, after announcing it will buy 15% of future production from Thompson Creek Metal‘s Mt. Milligan copper-gold project in B.C., boosting the company’s gold stream interest to 40%. Royal will pay $270 million for the purchase, increasing its total payment to $581.5 million. Mt. Milligan is set to start producing in late 2013. Annual production for the first six years is pegged at 262,000 oz. gold. Over the mine’s life, production should average 194,000 oz. gold per year.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA1355699.508.738.78-0.86
Freeport McMo*FCX6976639.5636.5236.87-2.86
Alpha Nat Res*ANR4441422.6119.1719.27-4.18
Potash C Sask*POT4165541.0038.4238.80-1.96
Hecla Mining*HL404516.505.355.41-1.04
Barrick Gold*ABX3897148.8044.1244.19-5.62
Kinross Gold*KGC3815813.0811.4311.69-1.67
Ivanhoe Mines*IVN3133321.0715.7216.15-5.63
Newmont Mng*NEM2973865.9560.8461.76-5.18
Mosaic*MOS2838150.9046.5047.32-3.19
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Legend Intl H*LGDI13470.160.140.16+6.6
US Antimony*UAMY1442.502.252.31+2.2
Alliance Rs P*ARLP18972.7670.3072.53+0.4
Buenaventura*BVN622838.7436.1438.30+0.3
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Douglas Lk Ml*DLKM6190.160.100.10-47.3
Ivanhoe Mines*IVN3133321.0715.7216.15-25.8
America West*AWSR240.500.260.26-25.7
Linux Gold*LNXGF810.040.030.03-25.0
Caledonia Mng*CALVF32300.110.080.09-25.0
Radius Gold*RDUFF1870.290.210.21-25.0
Samex Mng*SMXMF5200.650.430.49-23.4
Minera Andes*MNEAF5211.571.261.26-22.7
Tanz Roy Exp*TRX32763.042.322.42-22.6
Miranda Gold*MRDDF1140.320.260.26-21.2
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Alliance Rs P*ARLP18935072.53+0.30
Buenaventura*BVN622795938.30+0.14
US Antimony*UAMY1443902.31+0.05
Legend Intl H*LGDI13473750.16+0.01
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Randgold Res*GOLD343694298.21-10.30
Royal Gold*RGLD415065769.12-9.59
Agnico-Eagle*AEM915184536.74-6.46
Cliffs Nat Rs*CLF1131855763.14-6.21
BHP Billi-BHP*BHP1418795869.05-5.99
Ivanhoe Mines*IVN3133250716.15-5.63
Barrick Gold*ABX3897130044.19-5.62
Newmont Mng*NEM2973787561.76-5.18
Silver Wheatn*SLW2634626028.33-5.05
Goldcorp*GG2474532045.35-4.92
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