TSX ends lower during the Oct. 31-Nov.4 week

The TSX Composite Index ended the Oct. 31-Nov. 4 week down 111.26 points to 12,408. Investors pushed the price of gold up as they fretted over Greece’s debt situation and the weak economic data coming out of North America.

Canada’s unemployment rate rose to 7.3%, after the country cut 54,000 jobs in October, according to Statistics Canada. This loss nearly wiped out September’s gain of 61,000 jobs.

The yellow metal gained US$10.60 to end the week at US$1,754 per oz. in New York. This helped the Global Gold Index bolster a 14.49-point gain to 425.57. This upward movement was also apparent in the Capped Diversified Metals & Mining Index, which moved up 10.44 points to 1,173.84.

Grande Cache Coal was the week’s biggest percentage gainer and the most traded stock. On Oct. 31, it received a joint acquisition bid from two major Asian players: China’s Winsway Coking Coal Holdings and Japan’s Marubeni. The commodity trading houses offered to buy out the Alberta coal producer for $10 a share in cash or $983 million. This represents an impressive 70% premium over its closing price the day before the bid. Thrilled with the offer, investors pushed Grande Cache up 67% or $3.94 to $9.81 apiece on 76.5 million shares traded.

The company forecasts annual production at its Smoky River Coalfield in Alberta to increase to 2 million tonnes by 2012. Grande Cache is the last remaining Canadian pure-play coking coal producer.

Ivernia saw its shares jump 50% to 12¢. On Nov. 4 it announced that it will report its quarterly financial results for the period ended Sept. 30, 2011 after market close on Nov. 14. The company owns the Magellan lead carbonate mine in Western Australia. The mine has been on care and maintenance since early April.  

After announcing plans to boost production at its Lamaque gold project near Val-d’Or, Que., White Tiger Gold gained 24% to close at 87¢ apiece on 4.3 million shares traded. The company announced on Oct. 31 that operations at Lamaque have been restarted. It expects to mine 2,000 tonnes a day from the project by early 2012.

Lundin Mining was the second most actively traded stock this week, with 42.8 million shares changing hands. Despite the heavy traffic, investors pushed the company’s share price down 6¢ to $4.03.

Lundin announced that Freeport-McMoRan, the operator of its Tenke Fungurume mining operations in the Democratic Republic of Congo, has approved a second expansion phase at the project. The expansion is expected to add another 150 million lbs. of copper cathode a year to production. It should be completed in 2013.

Lundin also reported that its interim president and CEO, Paul Conibear, has formally taken the company’s reins on Oct. 31.

Lundin has a 24% interest in Tenke Fungurume, while Freeport holds 56% of the project. The state-owned miner, Gecamines, holds the remaining 20%.