TSX bounces back

After the storms came the sun as markets recovered, if only slightly, for the Aug. 22-26 period with the TSX Composite Index rising 92 points to finish at 12,327.51 points.

With the improvement talk shifted to aspects of the economy that appear healthy such as imports of machinery, which were higher for the quarter, and more housing starts.

But rejuvenated markets weren’t good for gold as the yellow metal ended its historic run and fell US$65 to US$1,797.30 per oz. That lower dollar value rippled through to the miners as the Global Gold Index was down roughly 12 points to 418.30 for the period.

The Capped Metals & Mining climbed just 12 points for the period as it finished up at 1,149.70. Although the gain was modest, it did reverse a downward trend as copper, aluminum, lead and zinc prices all recovered somewhat.

Cameco’s hostile bid for junior Hathor Exploration had the latter’s shares setting a scorching pace for the period. Hathor’s stock was the largest gainer by percentage points as it climbed 40% to finish at $3.88. Cameco’s made an all-cash offer of $520-million for the company and onlookers believe the move could initiate a bidding war for Hathor’s high-grade Roughrider uranium project in Saskatchewan. Cameco took its bid directly to Hathor shareholders after failing to cut a deal with the company’s board. Cameco shares were up 6% for the period finishing at $21.87.

Canadian Zinc Corporation also made a nice move over the period. The company was up 21% after announcing it signed a socio-economic agreement with the government of the Northwest Territories for the development of its Prairie Creek silver, zinc and lead mine.

Canada Lithium released results from the first 19 holes of a recently completed 56-hole drill program at the Québec Lithium project near Val d’Or, Québec and the market applauded the results. The company’s shares were up 20% to 60¢ on the back of highlights of 15.6 metres grading 1.21% Li2O and 25.2 metres grading 0.94%. The company also said that it has received provincial approvals for the location of the waste dump and the mill site, and the overall environmental approval process is proceeding as planned.

And Katanga Mining gained 17% to finish at $1.41 after it said it was pushing ahead on the expansion of a copper cobalt project that will bring production capacity up to 310,000 tonnes of copper per year. Glencore International, which owns 74% of Katanga, is funding the expansion.