Toronto Stock Exchange
The TSX composite index endured a tough period as the index fell 88 points to 13,766.76 for the Feb. 7-11 period.
The fall came as experts predicted a slump in housing starts and housing prices in Canada due to a divergence in wages and home values.
The news wasn’t all bad on the economic front, however, as exports jumped 9.7% in December 2010, which meant they managed to outpace imports and create a trade surplus. That could well translate into stronger economic growth numbers for the month.
But the big story of the week wasn’t found in economic data; instead it came from word of a proposed merger between the TMX Group and the London Stock Exchange. If successful, the merger would make for a global leader in energy and mining stock trading, but questions remain if the deal will get the required government approval.
The idea of a new trading platform for miners did little to help gold miners on the Toronto Stock Exchange however. The Global Gold index was off 6 points and finished at 382.88 despite gold rising US$17 to end at US$1,354 per oz. The price of the yellow metal was seen as benefiting from the political turmoil in North Africa.
The Capped Metals and Mining index fell 49 points to 1,532.89 as the prices for copper, aluminum, nickel, lead and zinc were all lower. The price of tin, however, managed to continue on its extended bull run as it finished the period US7¢ higher at US$14.27 per lb.
Results from a geochemical soil survey seemed to be enough to get Velocity Minerals some attention. The company’s shares jumped 29% to 18¢ after the study showed two separate anomalous areas for gold in the Orogrande mining district in Idaho Cty., Idaho.
MagIndustries saw its shares tumble after a key investor pulled out of a deal to acquire shares in the company. MagIndustries reported that TSC Capital would not follow through on a letter of intent announced last December. The company said it was working on alternative transactions. Its shares were off 29% to 39¢ apiece.
It wasn’t a strong period for EMC Metals either. The company released results from testwork on producing scandium-aluminum alloys, which said more testwork was needed to improve its understanding. Future tests will involve more capital as they will require larger-scale facilities and higher temperature tests. EMC shares fell 22.8% to 27¢.
Staying with market losers, Magma Metals lost 20% of its market cap for the week as its shares closed at 39¢. The fall came after the release of a scoping study for its Thunder Bay North platinum-palladium-copper-nickel project in Ontario that predicted an internal rate of return of 13% and a net present value of $41 million using an 8% discount rate.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Uranium OneUUU332626.656.156.15-0.28
MagIndustriesMAA289540.300.190.20-0.08
Centamin EgyptCEE248272.532.092.45+0.15
Osisko MngOSK2448314.4513.3713.77-0.23
First NickelFNI243980.220.170.19+0.03
Eastern PlatinELR240701.811.611.64-0.14
Kinross GoldK2287317.1316.2016.20-0.55
Teck BTCKB1819263.3756.9657.98-3.78
Equinox MinlsEQN181116.796.386.43-0.20
Yamana GoldYRI1762512.0011.5911.59-0.11
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Velocity MinlsVLC6990.190.140.18+28.5
Polo ResPOL1450.100.080.10+25.0
Armistice ResAZ11660.520.410.50+25.0
Klondex MnsKDX14343.803.083.71+20.4
First NickelFNI243980.220.170.19+18.7
MinemakersMAK520.650.620.65+18.1
Talon MetalsTLO19902.492.032.47+16.5
Auryx GoldAYX134460.880.730.85+16.4
Pretium ResPVG15259.497.969.30+16.2
Canadn ZincCZN29160.930.750.88+15.7
Crystallex IntKRY118450.170.130.14-41.6
MagIndustriesMAA289540.300.190.20-28.5
EMC MetalsEMC31020.360.260.27-22.8
Magma MetalsMMW27570.460.350.39-20.4
Ram PowerRPG78621.911.471.56-19.1
Silver Bear RsSBR5120.570.480.48-15.7
Pac NW CapPFN11450.190.160.17-15.0
Northern Dyn MNDM219021.5016.7517.85-13.8
Tiger ResTGS1400.540.470.48-12.7
South Am Gld&CSAG15150.090.070.07-12.5
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Potash Cp SaskPOT3830582185.49+6.33
AgriumAGU551679696.31+5.81
First QuantumFM2705965133.39+4.29
Pretium ResPVG15253109.30+1.30
Golden MnlsAUM3819722.35+1.29
GoldcorpG1570805942.41+1.25
Avalon Rare MtAVL80064157.38+0.94
Karnalyte ResKRN19396410.75+0.70
Seabridge GoldSEA22142629.89+0.69
Tahoe ResTHO69266315.15+0.66
Inmet MiningIMN230488874.12-4.99
Teck BTCKB1819198657.98-3.78
Northern Dyn MNDM219008417.85-2.87
Teck ATCKA4193259.34-2.85
Labdr I-Ore RoLIF_U17151770.78-1.12
Alamos GoldAGI270173415.81-1.10
Agnico-EagleAEM270211671.05-0.99
Imperial MetalIII21543722.99-0.97
Detour GoldDGC380391429.95-0.95
Medusa MngMLL1142886.48-0.87
TSX Venture Exchange
The S&P-TSX Venture composite index fell 12.73 points or 0.54% to close at 2,357.56. Volume during the Feb. 7-11 week averaged 205 million shares traded. Some 145 companies reached new 52-week highs, while 36 hit new 52-week lows.
Montreal-based Geomega Resources soared 110.6% or $1.46 to $2.78 per share on assays from one drill hole at its Montviel rare earths property in Quebec. The hole assayed 1.24% total rare earth oxides (TREO) over its 480-metre core length, from 21 to 501 metres, and included a high-grade section of 2.03% TREO over 39.4 metres from 266.6 metres. The results came from the first phase of drilling. The property is underlain by the Montviel carbonatite complex, which extends over an area of 32 sq. km, making it one of North America’s largest carbonatites.
Focus Metals surged 71¢ to $1.42 following a presentation by chief executive Gary Economo at the Critical Metals Conference in New York, where he discussed the importance of the company’s “critical technology” flake graphite and rare earths properties in Quebec. He described Focus Metals’ 100%-owned Lac Knife graphite deposit, which it acquired in mid-2010, as one of the richest pure graphite sources in the world and explained that large flake graphite is used in the production of lithium ion batteries. Graphite is also used in high-tech electronics such as iPads to remove the heat from sensitive components. The junior is also partnered with Soquem, the operating and exploration arm of the Quebec government, at its Kwyjibo rare earth, copper and iron ore property.
Yellowhead Mining jumped 48¢ to $1.88 on no news. The company has a 100% stake in the Harper Creek copper-gold-silver advanced exploration project in south-central British Columbia, about 150 km from Kamloops. The company describes Harper Creek as “one of the largest copper pre-development projects in Canada.”
Andina Minerals rose 42¢ to $1.90 after the company announced on Feb. 9 that it would be releasing a much-anticipated prefeasibility study on its 100%-owned Volcan gold project on Feb. 14. Volcan is in Chile’s Atacama region about 120 km east of Copiapo in the prolific Maricunga gold belt. As of Jan. 31, initial reserves for the Dorado deposits at the Volcan project reached 283 million tonnes grading 0.72 gram gold per tonne for about 6.6 million oz. contained gold.
Loncor Resources climbed 40¢ to $2.90 per share
on no news. On Feb. 1, the junior announced that it had closed two financings, raising a total of $23.97 million. Of that, $3.99 million was a non-brokered private placement to Newmont Mining of 1.7 million shares in the company at $2.35 apiece. Loncor plans to use the funds to explore its Ngayu and North Kivu gold projects in the Democratic Republic of the Congo.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Passprt PotashPPI593101.860.760.95+0.21
Allana ResAAA566542.431.621.69-0.11
Encanto PotashEPO446180.650.490.53+0.02
Great WesternGWG182451.140.961.00-0.06
Stans EnergyRUU178493.401.982.58-0.62
Western PotashWPX168001.701.371.69+0.34
Catalyst CopprCCY146610.250.190.20+0.04
Galena CapitalFYI117020.090.050.08+0.02
Focus MetalsFMS114921.480.731.42+0.71
Eagle Hill ExpEAG113350.350.230.32+0.08
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Geomega ResGMA17352.891.302.78+110.6
Focus MetalsFMS114921.480.731.42+100.0
Softrock MnrlSFT106430.150.090.12+71.4
Bitterroot ResBTT35230.190.100.18+63.6
Gogold ResGGD7090.900.480.80+60.0
Confedertn MlsCFM54350.840.460.68+51.1
D Arianne ResDAN81291.250.701.13+50.6
Barker MnrlsBML25290.100.050.06+50.0
Mesa UranMSA7661.490.881.27+45.9
El Tigre SilvrELS3990.640.440.64+45.4
Sacre-Coeur MlSCM39651.120.530.55-50.8
Petromin ResPTR3820.140.090.10-28.5
AMI ResAMU3020.220.160.16-23.8
Island Arc ExpIAX6180.080.050.07-22.2
ICS Copper SysICX130.070.060.07-22.2
Auriga GoldAIA3100.300.250.25-21.8
Knick ExplKNX1260.320.260.26-21.2
Orsa VentORN370.150.140.15-21.0
Rhyolite ResRYE590.580.450.45-21.0
Klondike SilvKS22890.040.030.04-20.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Geomega ResGMA17349862.78+1.46
Prospctr C ResPRR149540.51+0.94
Focus MetalsFMS114915811.42+0.71
Yellowhead MngYMI31335651.88+0.48
Andina MnlsADM19374041.90+0.42
Mesa UranMSA7661071.27+0.40
Loncor ResLN4037272.90+0.40
Trelawney M&ExTRR24043593.81+0.39
D Arianne ResDAN81288891.13+0.38
Lumina CopperLCC2876685.81+0.36
Hana MngHMG28191004.32-0.68
Stans EnergyRUU178489622.58-0.62
Maudore MinlsMAO1125335.42-0.58
Sacre-Coeur MlSCM39647990.55-0.57
Riva GoldRIV6844191.80-0.38
Rare Elemnt RsRES58978913.50-0.38
Atac ResATC8719096.50-0.37
Ninety Nine CpWDG5842342.67-0.33
Cayden ResCYD12723554.08-0.25
Southern ArcSA5315811.66-0.24
U.S. MARKETS
Increasing consumer confidence led to a second straight weekly advance for U.S. stocks. Oil prices fell on news that Egyptian President Hosni Mubarak finally resigned and handed power over to the military.
The price of crude oil dropped US$3.45 to US$85.58 per barrel, a 10-week low.
The Dow Jones industrial average finished Feb. 7-11 at 12,273.26 for a gain of 1.5%, while the S&P 500 index was up 18.28 points at 1,329.15. Nasdaq was also up 1.4% at 2,809.44.
As the price of gold advanced US$11.40 to US$1,360.40 per oz. the Philadelphia Gold and Silver index went the other way, closing down 1.7% at 203.73. Goldcorp finished up US$1.34 to US$42.98 after announcing a 23% increase in gold reserves to 60.1 million contained oz. at year-end 2010.
With the spot price for silver up US78¢ at US$29.89 per oz., Silver Wheaton gained US37¢ at US$34.23, while Hecla Mining slipped US13¢ to US$9.54. Hecla will release its 2010 fourth quarter results on Feb. 16.
Freeport-McMoRan Copper & Gold ended at US$53.52 for a loss of US$3.24 as the spot price of copper slipped US4¢ to US$4.52 per lb.
Crystallex International lost US10¢, to close at US14¢ on receiving news that Venezuela’s state mining company CVG had unilaterally terminated Crystallex’s mine operating contract covering the long-disputed Las Cristinas gold project.
With 12 active coal mining complexes in the northern and central Appalachia, and one in the Illinois basin, International Coal Group jumped US92¢ to US$9.30 per share. The company reported a net income of US$9.6 million, or US5¢ per share, in the fourth quarter of 2010.
Li3 Energy, an early-stage company focused on lithium mining opportunities in the Americas, closed up 41% at US38¢. The company has hired a consultant to conduct a preliminary review of the Maricunga lithium project in Chile, which is subject to a letter of intent to acquire.
Up 29% at US$1.15, American Energy Fields reported that it had acquired ground in the Aquarius Mountains mining district in Mohave Cty., Ariz., that has potential for uranium and rare earth elements.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA11452017.4816.9717.37+0.23
Freeport McMo*FCX7789257.6452.7653.52-3.24
Silver Wheatn*SLW4907235.5533.6034.23+0.37
Hecla Mining*HL486709.969.109.54-0.13
Intl Coal Gp*ICO438099.548.419.30+0.92
Barrick Gold*ABX4004948.9247.1047.49-0.62
Goldcorp*GG3599343.8441.1442.98+1.34
Northgate Mnl*NXG322912.982.682.92+0.23
Crystallex In*KRY303940.170.130.14-0.10
Kinross Gold*KGC3029917.2416.4116.44-0.51
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Li3 Energy*LIEG39920.390.300.38+40.7
Am Engy Field*AEFI15491.271.001.15+29.2
Yellowcake Mg*YCKM3890.060.030.05+25.0
Infrastrc Mat*IFAM470.260.210.26+23.8
Shoshone Silv*SHSH4140.170.140.17+21.4
El Capitan Pr*ECPN13591.140.890.98+20.9
Cornerstone C*CTNXF3030.670.530.63+18.8
Midway Gold*MDW9951.521.231.40+16.6
Intl Coal Gp*ICO438099.548.419.30+10.9
Samex Mng*SMXMF8740.860.710.78+9.8
Crystallex In*KRY303940.170.130.14-41.6
Strata O&G*SOIGF2750.350.260.27-22.8
Habanero Res*HBNRF310.080.080.08-20.0
New Jersey Mg*NJMC420.280.250.25-19.3
Constittn Mng*CMIN16250.220.180.19-13.6
Northern Dyn*NAK675221.7616.9018.17-13.5
Banro Res*BAA11193.382.912.93-11.7
America West*AWSR571.901.261.70-10.0
Buenaventura*BVN809245.9539.3040.04-8.8
Argentex Mng*AGXM4471.131.011.03-8.8
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Potash C Sask*POT19376062188.30+6.86
Agrium*AGU320475797.84+6.14
Mosaic*MOS2807206688.32+5.79
Soc Quim&M Ch*SQM270111856.65+2.61
Intrepid Pots*IPI107626639.08+2.09
Alliance Rs P*ARLP48261872.79+1.68
Goldcorp*GG3599314042.98+1.34
Seabridge Gld*SA194943630.50+1.04
OM Group*OMG83183637.31+1.01
Compass Mnls*CMP41173494.82+0.95
Buenaventura*BVN809175540.04-3.87
Teck B*TCK2889838658.81-3.70
Freeport McMo*FCX7789169253.52-3.24
Randgold Res*GOLD383638177.02-2.94
Northern Dyn*NAK675157018.17-2.85
Cliffs Nat Rs*CLF1309408887.51-2.62
Consol Energy*CNX1839052447.00-2.33
Mechel*MTL247312931.86-1.63
Alum Cp China*ACH48935424.18-1.23
Puda Coal*PUDA21104611.78-0.89
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