TSX continues to slide, June 13-17

The TSX Composite Index lost 294.05 points during the June 13-17 trading week to end at 12,789.95 points. The index fell for four out of the five trading days, sliding 2.2%. The drop came as concern over Greece’s debt dampened news that jobless rates have declined in Canada and the United States.

The Capped Metals & Mining Index also tumbled 33.53 points to 1,273.17, while the price of gold gained US$7.90 to end at US$1,540 per oz. However, the gain didn’t stop the Global Gold Index from slipping 9.06 points to 353.89.

Breakwater Resources was a triple winner as the week’s biggest percentage and value gainer and the most traded stock.

On June 15, the zinc miner agreed to a $663-million or $7.50-per-share takeover bid by smelting giant Nyrstar. Breakwater gained 48.2% or $2.41 to finish at $7.41 per share on 67 million shares traded.

Nyrstar has been looking to add zinc mines to feed its smelters, and through the transaction would acquire four of Breakwater’s zinc-polymetallic mines.

First Uranium surged 29.6% to 70¢ on no news, however, in the previous week the company reported results for the three and 12 months ended March 31. First Uranium reported total gold sales of 142,630 oz. gold and consolidated revenue of $172 million for the 2011 fiscal year, a 56% and 86% increase, respectively, from the previous year.  

Also on no news, Gold Reserve saw its shares surge for the second consecutive week, moving 25.5% to close at $2.85. The company reported it’s unaware of any material corporate development to account for the improved stock price and trading activity.

The miner is currently in an international arbitration against the Venezuelan government regarding the illegal expropriation of its Brisas gold-copper project and Choco 5 gold property.

With 31.9 million shares traded, Avion Gold was the second most active stock. The gold miner closed an earlier announced acquisition to buy another 12.5% interest in the Kofi Nord and Netekoto-Kenieti concessions from African Goldfields. The concessions are part of the company’s Kofi gold project in Mali. The transaction added another 405,000 tonnes of 2.55 grams gold per tonne in the measured and indicated category, and 657,000 tonnes at 2.18 grams gold in inferred.

Avion also had its board and management team open the Market on June 14 to celebrate its recent listing on the TSX. The company’s shares closed up 3¢ to $1.61.

Gold explorer Romarco Minerals saw heavy trading as it announced it would be included in the S&P/TSX Composite Index as of June 20. It moved up 4¢ to $1.94 on 29.3 million shares traded.

Central GoldTrust gained $1.31 to end the week at $57.41, on no news.

Mexican-focused MAG Silver announced its first quarter results ended March 31, it shares gained $1.09 to close at $9.29. The company announced working capital of $37.6 million, including $35.4 million of cash in hand.