Toronto Stock Exchange, Sept. 9-13

The S&P/TSX Composite Index sank 131.24 points during the trading week to finish the period at 12,723.40, as concerns over the U.S. Federal Reserve’s tapering stimulus lingered.

The S&P/TSX Global Gold Index fell 17.36 points to 178.12, as the New York spot price for gold lost US$60.90 per oz. to US$1,327.90. The S&P/TSX Capped Diversified Metals & Mining Index bucked the downward trend, edging up 2.42 points to 801.64.

Gabriel Resources was the week’s most actively traded stock after the Romanian government appeared to have a change of heart towards the company’s Rosia Montana gold project. Media reports indicate that the country’s prime minister may halt the parliamentary vote of the draft legislation that his government submitted earlier to advance the development of the Rosia Montana gold project due to protests calling for the project to be blocked. The company said it is confirming the reports and would seek legal action if the draft legislation is rejected. Gabriel lost 36.7% to close the week at 93¢, as 24.5 million shares changed hands.

Another stock that saw heavy trading was Potash Corp. of Saskatchewan after reports indicated that Russian magnate Suleiman Kerimov would sell his 21.75% stake in fertilizer producer Uralkali to investor and lawyer Vladimir Kogan for US$3.7 billion. This fuelled speculation that Uralkali may rejoin an export partnership with Belaruskali, the Belarusian state fertilizer producer, which would improve the price of the crop nutrient. PotashCorp advanced $2.18 per share to $33.57, on 20.8 million shares traded.

Western Lithium shot up 200% to 45¢ on no news. “The company is not aware of any circumstances that could reasonably be expected to justify the recent trading activity,” it said in a Sept. 13 release. Western Lithium is working on “development initiatives and funding opportunities,” with a focus on its flagship Kings Valley lithium project in Nevada. On Sept. 16 the stock retreated 53% to 21¢.

First Point Minerals more than doubled after announcing that Cliffs Natural Resources would fund a prefeasibility study on their jointly held Decar nickel-iron alloy project in central B.C. Cliffs has an option to increase its 60% interest in Decar to 65% by funding 100% of the study and completing it by August 2015. It could further boost its interest in the project to 75% by bankrolling a feasibility study. Cliffs is figuring out the scope of work that the project requires in 2014. Since optioning into Decar in 2009, Cliffs has invested $21 million on the project and completed a positive preliminary economic assessment earlier this year. First Point gained 104% during the trading week to end at 28¢ per share. It holds the remaining 40% of Decar.

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