Toronto Stock Exchange, March 11 – 15

The S&P/TSX Composite Index was down nearly 6 points to end the week at 12,830.03 points, thanks to a 1%, or 134-point decline, on March 13.

The S&P/TSX Global Gold Index remained relatively flat at 251.62 points, despite the spot gold price adding US$13.70 to US$1,592.90 per oz. The S&P/TSX Capped Diversified Metals & Mining Index bucked the downward trend, rising 11 points to 942.45.

One of the week’s percentage winners was Alderon Iron Ore, jumping 35%, or 43¢, to $1.67, after Hebei Iron and Steel Group handed the company $119.9 million to complete its partnership agreement announced in April 2012. Last September Hebei injected $62.2 million in Alderon for 19.9% of the junior, and now $119.9 million for a 25% stake in the Kami iron ore project located in the Labrador Trough. Alderon owns the remainder of the project, and says that all the recent proceeds will go towards developing the estimated US$1.3-billion Kami project. It anticipates receiving environmental approvals and construction permits by year-end.

As part of the deal, Hebei — China’s largest steel company — will help Alderon obtain project debt financing, along with more offtake partners for Kami’s remaining annual production. So far, Hebei is set to buy 60%, or 4.8 million tonnes, of the first 8 million tonnes of iron ore concentrate produced each year at Kami, at a 5% discount rate to market price.

After taking a hit the week earlier for saying it would close the Kiena gold mine by June, Wesdome Gold Mines climbed 31% to 72¢ on its 2012 financials. The miner produced 55,813 oz. gold for 2012, up 17% from a year ago. Costs also rose 13% to $1,385 per oz. For 2013 it forecasts output of 55,000 oz. gold, with Kiena estimated to contribute 5,000 oz.

Royal Nickel welcomed a boost after signing a memorandum of understanding with China’s Tsingshan Holding Group. Tsingshan intends to build a plant capable of processing sulphide concentrate from Royal’s Dumont nickel project in Quebec, and may consider entering either an offtake, partnership agreement or both, after completing Dumont’s bankable feasibility study expected by mid-year. Royal Nickel moved up 26% to 42¢.

On the negative side, Diamond Fields International plummeted 33% to 4¢ after regulators notified the company it would be booted from the TSX on April 12 for not meeting requirements. Diamond Fields says it will appeal the decision.

Inmet Mining and First Quantum Minerals were the top value gainers, up $3.28 to $71.80 and $1.32 to $21.74. On March 12, First Quantum said about 61.45% of Inmet’s outstanding shares had been tendered to its hostile takeover offer. It extended the offer deadline to March 21, and lowered the minimum tender condition to more than 50%.

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