The S&P/TSX Composite Index closed the Jan. 30-Feb. 3 trading period at 12,577.28 points, a 110.78-point gain, marking its seventh consecutive weekly advance.
Bolstering Canada’s benchmark stock index was healthy economic figures from the U.S., which offset the unimpressive Canadian job data and concerns over Greece’s unresolved debt deal.
The unemployment rate in the U.S. dropped from 8.5% to 8.3%, whereas the jobless rate in Canada rose to 7.5% due to not enough jobs being created. The U.S. also reported a strong growth in its services sector.
Diversified miners moved up 18.05 points to 1,237.21, while the S&P/TSX Global Gold Index and the price of gold finished the period lower, sliding 8.88 points to 383.77 and US$11.40 per oz. to US$1,725.90.
Following an unsolicited bid by Perth-based Panoramic Resources, Magma Metals became the week’s biggest percentage gainer, surging 87.5% to 15¢.
Panoramic is offering to acquire all of Magma shares it currently doesn’t own in a deal that would provide two Panoramic shares for every 17 Magma shares. This implies a value of 14.94¢ per share based on Magma’s Feb. 2 closing price on the Australian stock exchange.
Magma’s directors say the conditional offer appears “highly opportunistic” and urge shareholders not to respond to the bid.
Starcore International Mines gained 32% after announcing on Feb.2 it has repaid its US$3.2-million debt one year ahead of schedule. To help pay that loan, which was used to acquire the San Martin gold-silver mine in Queretaro, Mexico, the company closed a $2.25-million non-brokered private placement on Jan.31. The placement consisted of 9 million units priced at 25¢ apiece. Each unit contained one share and a half share warrant. Though Starcore has paid all its debt, it still has forward contracts under the loan agreement for the sale of 14,513 oz. gold at a price of US$731 per oz. until Jan. 31, 2013.
Starcore’s sole asset, the past-producing San Martin mine, has reserves of 586,318 tonnes grading 2.29 grams gold and 39 grams silver per tonne.
New Millennium Iron jumped 29.2% to close at $2.65 a share after reporting that its joint-venture partner Tata Steel Minerals Canada has signed a life-of-mine confidential rail transportation contract and locomotive rental agreement with Quebec North Shore and Labrador Railway Co. These agreements will allow Tata to transport iron ore products produced from the joint Direct Shipping Ore project in Newfoundland and Labrador to Sept-Îles, Que. Providing a significant step in the logistics process of shipping iron ore products to Tata Steel Europe, and giving cost and transport certainty, said New Millennium’s president and CEO Dean Journeaux in a statement. Tata Steel owns 27% of the company.
Metallurgical coal producer Walter Energy topped the week’s value gains, advancing $4.20 per share to $75.60 after announcing a regular quarterly dividend of 12.5¢ a share payable on March 12 to shareholders on record as of Feb. 20, 2012.
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