Toronto Stock Exchange, Oct. 28 – Nov. 1

The S&P/TSX Composite Index was down 65 points to 13,337.46 for the period, with a weak gold sector contributing to the slump. 

The metal price hit a two-week low, with market pundits interpreting the sell-off as a sign that the global growth story is gathering steam and drawing capital out of gold as a safe haven. Optimism for the global economy came on the back of better-than-expected manufacturing data coming from China. Also encouraging was the country’s economic growth rebounding to 7.8% in the three months ending in September, from the previous quarter’s two-decade low of 7.5%.

Overall for the period, the gold price was down US$39 per oz. to US$1,313.20, and the S&P/TSX Global Gold Index was down 17 points to 171.82

Barrick Gold contributed to the index sell-off, as its shares were down $3.19 to $18.72 for the period.  The selling came in anticipation of equity dilution, as the miner plans to raise $3 billion to repay debt by issuing 163.5 million shares at $18.35 each. The company is also suspending work at its Pascua-Lama project on the border of Argentina and Chile due to escalating costs.

Despite the copper price climbing two cents to US$3.30 per lb. on the positive economic data out of China, the base-metal camp had a less than stellar week, as evidenced by the S&P/TSX Capped Diversified Metals & Mining Index falling 27 points to 811.03. 

Taseko Mines’ shares were down 9% to $2.31 after an environmental study on its New Prosperity project in B.C. cast doubt on the project’s viability, arguing that a mine would harm the environment.

Taseko’s losses, however, paled in comparison those suffered by Perseus Mining shareholders. Perseus shares took the biggest hit by percentage, as the company’s stock fell 35% to 39¢ after reporting a slight decline in production at its Edikan gold mine in Ghana. Perseus was also downgraded by CIBC and GMP Securities. 

Volta Resources shareholders enjoyed a rosier period. The company’s shares were the biggest gainer by percentage, as they climbed 78% to finish up at 37¢. The surge came after B2Gold tabled a friendly offer that values the junior gold explorer at US$63 million, or 42¢ per share. While Volta’s portfolio is made up of nine projects across Burkina Faso and Ghana, it is the Kiaka project in Burkina Faso that is the apple of B2’s eye. Kiaka is nearing the feasibility stage. 

And Coro Mining gained 63% to finish the period at 20¢ on hopes that a deal can be reached for its San Jorge project in Argentina. The company announced that it extended the exclusivity period granted to an unnamed third party, but stressed that no deal has been signed between the two firms.

TSX most active issues

TSX greatest percentage change

TSX greatest value change