Toronto Stock Exchange
The PDAC effect – a boost to mining stocks which is said to coincide with the massive convention in Toronto – didn’t last long this year, as miners fell with the rest of the market during a disappointing March 7-11 period. In all, the TSX composite index was off 629 points to finish at 13,674.
The sell-off was tied to jittery markets the world over, and came despite Canada showing decent housing-start numbers and a merchandise trade surplus for a second straight month. And while employment numbers disappointed somewhat, 15,000 jobs were still added in February and the unemployment rate was stable at 7.8%.
Despite increased worry over the political situation in the Middle East, gold failed to continue to attract investment inflows, as the metal’s recent strong run came to an end with a US$26 correction. The metal finished the period at US$1,411.50 per oz. and its loss was mirrored by the Global Gold index, which shed 20 points to end at 384.21.
The diversified miners represented in the Capped Metals & Mining index didn’t fare any better, as the index was off 114 points to close at 1,356.75. That fall came as prices fell for copper, aluminum, nickel, tin, lead and zinc.
But there were still a few positive stories in the mining sector over the period, one of which was Tiger Resources. The company is showing that the Democratic Republic of the Congo (DRC) is still a place to hunt for world-class copper deposits, despite the political risks. Drill results from Tiger’s Sase project in the DRC helped the company carve out a 10% gain, moving up to 54¢. That boost came thanks to results that were highlighted by 28 metres grading 4.13% copper and 75 metres of 5.94% copper.
Nuinsco Resources received a nasty tax bill from the Canada Revenue Agency (CRA) and watched its shares fall shortly thereafter. The company released the news after markets closed on Friday, March 4, and its shares fell when markets opened on Monday. In total, Nuinsco shares were off 25% for the period as they finished at 18¢. The company says CRA is now charging it $4.4 million for transactions completed in 2006. Nuinsco says it plans to vigorously defend what it and its counsel believe to have been a correct filing position related to those transactions.
Despite attracting new investment, Diamond Fields International shares dropped 19% for the period, finishing at
25¢. The decline coincided with word that Jean-Raymond Boulle’s Spirit Resources
is looking to increase its interest in the
company. Spirit, which is a privately held company controlled by Boulle, said it will look to acquire more shares of Diamond Fields through ordinary market purchase. The company said it could take as much as an additional 5% interest in the company. Boulle and Spirit currently control roughly 30% of Diamond Fields’ shares.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR313881.611.371.42-0.18
Equinox MinlsEQN293325.774.935.21-0.55
Lundin MngLUN235137.867.197.39-0.51
Kinross GoldK1813315.6514.5214.94-0.24
Great PantherGPR173164.903.704.30-0.09
Uranium OneUUU167366.485.765.96-0.49
Yamana GoldYRI1575812.8311.9812.36-0.09
Canada LithiumCLQ157141.000.770.88-0.11
Cons Thomp IrnCLM1566017.1717.0817.120.00
Cline MngCMK152573.593.113.53-0.03
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
PC GoldPKL83891.160.790.99+28.5
Rockwell DiamRDI42950.050.050.05+25.0
Anaconda MngANX17890.090.080.09+12.5
Tiger ResTGS1240.600.510.54+10.2
Horizns G BearHGD225410.889.4410.52+9.0
Arehada MiningAHD770.130.120.13+8.3
Peregrine MtlsPGM18210.960.860.94+8.0
Adanac MolyAUA6082.772.002.44+7.9
Harry WinstonHW174914.3012.9013.78+7.8
Extract ResEXT2711.059.3110.20+6.6
Gryphon GoldGGN33640.200.130.14-30.0
MinemakersMAK230.500.400.40-29.8
Crescent GoldCRA11310.090.050.05-28.5
Nuinsco ResNWI45030.230.170.18-25.0
Crosshair E&MgCXX16052.111.431.62-23.2
Dejour EnterpDEJ10950.500.360.37-21.2
Zincore MtlsZNC22320.900.670.69-19.7
Diamond FieldsDFI7220.310.250.25-19.3
NoventaNTA1710.210.170.17-19.0
Energy FuelsEFR40021.000.800.81-19.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Harry WinstonHW174935613.78+1.00
Horizns G BearHGD225425310.52+0.87
Extract ResEXT2702210.20+0.64
PC GoldPKL83888010.99+0.22
Fronteer GoldFRG606756214.62+0.19
Revett MnlsRVM6157964.63+0.19
Adanac MolyAUA6076502.44+0.18
Mountain ProvMPV7045826.04+0.16
China Gold IntCGG41459525.53+0.12
Extorre Gold MXG20515475.79+0.12
First QuantumFM2452569111.95-11.99
AgriumAGU535697286.89-7.00
Potash Cp SaskPOT1355268152.65-6.71
Labdr I-Ore RoLIF_U39185271.22-5.88
Agnico-EagleAEM391834264.95-3.82
Golden MnlsAUM7636619.91-3.55
Pan Am SilverPAA221334634.92-3.52
Teck BTCKB1474667450.93-3.19
Cameco CorpCCO531661336.32-3.16
Teck ATCKA2367352.03-3.07
TSX Venture Exchange
The S&P-TSX Venture composite index tumbled 173.08 points in the March 7-11 trading week to close at 2,266.75. Trading volumes remained strong, however, averaging 193 million shares daily, with 110 companies hitting 52-week highs and 53 reaching new lows.
The most active trader on the Venture exchange was Encanto Potash, which dropped 9¢ over the week to close at 38¢. The company had previously been enjoying a spectacular run-up in junior potash stocks that started in mid-2010 as fertilizer and crop prices increased, and speculation surrounding BHP Billiton‘s failed takeover of Potash Corp. of Saskatchewan reached fever pitch. Investors await Encanto’s initial resource calculation for its main potash project, Muskowekwan, 100 km north of Regina, Sask. Drilling there in 2010 returned grades greater than 25% K2O or 40% KCl over several metres in two separate potash beds. On March 7, Encanto announced it is modifying the initial resource report to include calculations based on conventional mining methods and the in situ-leach mining method, as it argued different methods can have a profound impact on resource tonnage. It expects to finalize the report in early April.
Diamond International Exploration has changed its name and its exploration focus, helping it become the trading period’s biggest percentage gainer. The company, now called Northaven Resources, has decided to shift its focus to metals and away from the several diamond prospects it controls in Brazil. It has acquired an option on a new gold prospect it calls Murray, near Upper Arrow Lake in B.C.’s southeast. The news propelled the stock up 8¢ to 15¢. Northaven says it is also reviewing gold, silver and copper properties in Canada and South America, and is in advanced negotiations for a few other B.C. prospects.
The trading week’s biggest percentage loser was Sidon International Resources, which lists its headquarters as a P.O. box in Everett, Wash. Initial drilling at the company’s main MEG project in Tanzania, including 3 metres grading 1.7 grams gold per tonne, failed to impress investors, helping push the stock down to 6¢ from 12¢.
Finally, Giyani Gold was the week’s biggest value gainer, rising 47¢ to $3.48. Giyani, formerly a shell named 99 Capital, recently raised $9 million in a priva
te placement to pay for its acquisition of a 66.5% interest in six past-producing gold mines in South Africa’s Giyani greenstone belt. The company says the belt is an underexplored region of the country, and a key industrial development initiative for the Chamber of Mines of South Africa. Giyana Gold has extended the deal’s closing date several times from the original date of Oct. 29, 2010, while it completes due diligence and finalizes terms. It now hopes to complete the transaction by March 31.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Encanto PotashEPO208840.460.310.38-0.08
Sidon Intl ResSD205900.120.050.06-0.06
Passprt PotashPPI169820.910.650.80-0.04
Century MiningCMM167980.790.460.58-0.18
Allana ResAAA165071.921.471.65-0.02
Apella ResAPA160660.340.200.25+0.05
Ucore UraniumUCU129151.180.920.97-0.13
Great WesternGWG125500.910.760.83+0.01
Orbite Expl AORTA116592.712.052.30-0.27
Copper CanyonCPY112391.080.920.96+0.12
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Diamond ExplDIX36310.170.070.15+114.2
Redstar GoldRGC21870.390.270.39+62.5
Palladon VentPLL1531.490.991.45+47.9
Northern ShielNRN24750.280.170.28+47.3
Confedertn MlsCFM18330.970.640.97+40.5
Pac Coast NiklNKL5360.180.120.18+38.4
Huldra SilverHDA7381.761.221.70+37.1
Westar ResWER9030.680.440.60+33.3
Avrupa MnlsAVU6510.600.450.56+30.2
Resolve VentRSV460.260.240.26+30.0
Sidon Intl ResSD205900.120.050.06-50.0
Open GoldOPG4890.280.170.17-41.3
Sanatana DiamSTA16040.600.260.29-35.5
Alexander NubiAAN13250.420.280.29-29.2
Caza GoldCZY7000.750.520.54-28.0
Goldrea ResGOR6270.120.070.08-27.2
Great Quest MeGQ19212.811.352.01-26.9
Zinco MngZIM490.510.450.45-26.2
Decade ResDEC39980.250.170.17-26.0
Waymar ResWYM6091.611.131.19-25.6
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Ninety Nine CpWDG21255993.48+0.47
Palladon VentPLL1531961.45+0.47
Huldra SilverHDA7377361.70+0.46
Mansfld MnrlsMDR4542772.80+0.36
Adriana ResADI45493501.69+0.34
Wildcat SilverWS71304291.49+0.31
Tribune UranmTCB476581.30+0.30
Callinan MnsCAA7733843.21+0.29
Confedertn MlsCFM18332890.97+0.28
Grayd ResGYD14885451.92+0.27
Mirasol ResMRZ3893946.19-1.51
Batero GoldBAT23989774.82-1.48
Bear Creek MngBCM334321210.30-1.35
Chesapeake GldCKG75078810.77-1.29
Rainy River RsRR121500111.00-0.99
Geomega ResGMA6880463.89-0.86
Tasman MetalsTSM20800954.15-0.85
Clifton StarCFO13680693.42-0.83
Great Quest MeGQ19213062.01-0.74
Trelawney M&ExTRR46079804.30-0.65
U.S. Markets
The annual convention of the Prospectors and Developers Association of Canada in Toronto might have ended on a high note with record attendance, but the same could not be said for U.S. equity markets during the March 7-11 trading week.
The Dow Jones industrial average fell 125.48 points or 1.03% to finish at 12,044.40, while the S&P 500 index tumbled 578.52 points or 4.06% to close at 13,674.25. Even the Philadelphia Gold and Silver index lost ground, slipping 9.05 points or 4.19% to 206.81. Just 12 companies on the New York Stock Exchange reached new 52-week highs, with one falling to a new 52-week low.
The dismal trading results were reflected in the category of value gains, where only one company advanced at or above US$1. That was Harry Winston Diamond, which jumped US$1 to US$14.16 per share, or 7.6%, on no news. The company plans to release fiscal 2011 fourth-quarter and year-end results on March 22.
The second-largest value gain was Harmony Gold Mining, which rose 37¢ to US$12.47 per share, also on no news. On March 3, Harmony released its latest drill hole result at its Wafi-Golpu porphyry copper-gold project in the province of Morobe in Papua New Guinea, which returned 883 metres of 2.15% copper and 2.23 grams gold per tonne, including 628 metres of 2.82% copper and 3.06 grams gold. The mineral resource currently for Wafi-Golpu is 16 million oz. gold and 4.8 million tonnes copper. In its press release, Harmony noted that the latest intersection “continues to support our exploration target of 30 million oz. gold and 8 million tonnes copper.” Harmony holds 50% of the joint-venture project with Newcrest Mining holding the remainder.
Mountain Province Diamonds edged up 15¢ to US$6.21, also on no news. In December, Mountain Province published its technical report on the Gahcho Kue joint-venture diamond project, 300 km northeast of Yellowknife, N.W.T., and 80 km southeast of the Snap Lake diamond mine. The project has an 11-year mine life with a 20.7% internal rate of return and a $135.9 million net present value at a 15% discount rate. Mountain Province holds 49% of the joint venture and De Beers owns the rest.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Freeport McMo*FCX12698952.3246.2049.48-2.23
Alcoa*AA11405216.7515.4216.03-0.54
Silver Wheatn*SLW9125446.3838.6441.93-3.03
Hecla Mining*HL6299410.328.429.00-1.12
Potash C Sask*POT5616361.3352.8254.16-6.93
Intl Coal Gp*ICO4843411.069.159.78-0.76
Newmont Mng*NEM4276355.2251.1852.12-2.00
Kinross Gold*KGC3800416.1214.8415.36-0.28
Barrick Gold*ABX3461653.5849.8050.81-2.02
Alpha Nat Res*ANR3415257.8749.5851.09-5.68
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Elray Res*ELRA12140.040.020.03+50.0
Grandview Gld*GVGDF110.090.060.09+28.5
Gold Am Mng*SILA8860.180.130.17+21.4
Silver Dragon*SDRG18040.120.090.10+11.1
Strata O&G*SOIGF4490.300.230.24+9.0
US Antimony*UAMY1250.560.420.52+8.3
Harry Winston*HWD66714.7013.4814.16+7.6
Shoshone Silv*SHSH5680.190.140.16+6.6
Argentex Mng*AGXM12131.240.961.20+6.1
New Jersey Mg*NJMC1570.290.260.26+4.0
Global Gold*GBGD1710.160.120.12-33.3
Tri-Valley*TIV126030.730.470.50-25.3
Li3 Energy*LIEG10930.550.330.40-24.5
Crosshair E&M*CXZ8602.161.491.67-23.0
Dejour Enterp*DEJ16890.530.360.37-22.9
China Shen Zh*SHZ15665.563.124.12-21.2
Uranium Res*URRE122692.982.252.33-20.2
Uranium Ener*UEC50206.044.544.85-19.3
Uranerz Energ*URZ57714.873.783.95-18.0
Metalline Mng*MMG7561.451.101.10-17.9
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Harry Winston*HWD66703814.16+1.00
Harmony Gold*HMY2160287012.47+0.37
Alum Cp China*ACH31357823.83+0.25
Fronteer Gold*FRG488339315.08+0.23
MDU Res*MDU449557121.63+0.20
Mountain Prov*MDM2362156.21+0.15
Argentex Mng*AGXM12134121.20+0.07
US Antimony*UAMY1245500.52+0.04
Exeter Res*XRA5150725.29+0.03
Gold Am Mng*SILA8862510.17+0.03
Cliffs Nat Rs*CLF2700578887.69-11.43
Mosaic*MOS3068811976.28-9.22
Agrium*AGU323278089.32-7.26
Potash C Sask*POT5616343154.16-6.93
Randgold Res*GOLD598396573.63-6.85
Peabody Enrgy*BTU2530288863.14-6.21
Massey Energy*MEE2367734759.63-5.70
Alpha Nat Res*ANR3415229451.09-5.68
BHP Billi-BHP*BHP1907550789.59-5.25
BHP Billi-BBL*BBL797058274.84-5.11
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