Toronto Stock Exchange, Oct. 7-11

The S&P/TSX Composite Index closed up 176 points to 12,892.11, as investors hoped for a resolution to the budget impasse south of the border. The situation was doubly bad for commodities, as lower U.S. bond prices pushed yields higher, which hurt commodity prices.

The chain reaction was evident in the gold price, which was down US$36 to US$1,276.60 per oz., and that movement affected gold miners, as the S&P/TSX Global Gold Index fell 8 points to 162.54.

The copper price stayed above US$3.30 per lb., but diversified miners in the S&P/TSX Capped Metals & Mining Index lost 2 points to finish at 768.75.

A bid from OceanaGold made Pacific Rim Mining the most heavily traded and largest-gaining stock for the period. Pacific Rim shares were up 43% to 5¢ on 22.1 million shares traded after OceanaGold made an all-share offer valuing the company at $10 million. OceanaGold recently achieved production at its Didipio copper-gold mine in the Philippines, and wants to bring its expertise to El Salvador to develop Pacific Rim’s stalled El Dorado project. The project has been in limbo since 2008, when Pacific Rim halted exploration after the government dragged its heels on approving the project’s environmental-impact statement. OceanaGold shares were down 15¢ to $1.30 for the period.

Crocodile Gold’s shares rose 31% to 11¢ after announcing that third-quarter production was up 14% over the previous quarter. Feeling bullish, the company raised its full-year output guidance. It says its Cosmo, Fosterville and Stawell mines in Australia will produce up to 205,000 oz. gold — above the previous 180,000 oz.

Orbite Aluminae’s strong performance came after the company said it was in early stage talks with the Quebec government over financing alternatives. Activity in the company’s stock was strong, and trading was briefly halted. Orbite’s shares finished the period up 28% at 53¢ apiece.

Pretium Resources did not fare well. The company’s stock was off 29% over the period, finishing at $4.93, owing to Strathcona Mineral Services withdrawing as a consultant from Pretium’s Brucejack gold-silver project in B.C. Strathcona was hired to excavate and report assays from a bulk-sample program at the site. The work was being done to confirm a resource estimate by Snowden Mining Industry Consultants in November 2012. Pretium says Strathcona quit without providing details, but Strathcona’s founder, Graham Farquharson, told The Northern Miner that the company gave its reasons for leaving, and that it was up to the company to release those comments. Pretium says it will continue with its program as planned.

TSX most active issues

TSX greatest percentage change

TSX greatest value change