Market News (April 04, 2011)

Toronto Stock Exchange

An eventful period in Canadian politics didn’t translate into much excitement on
the TSX, as the TSX composite index rose only slightly for the March 21-25 period, gaining 120 points to finish at 14,039.39. 

As a coalition of opposition parties brought down the Conservative government, the market shrugged indifference, seemingly more concerned with macroeconomic factors. 

On the economic growth front, retail sales fell by 0.3% month-over-month in January and volumes were down too with vehicles and home-related items falling the most. But while consumer spending slowed, business investment and exports are expected to drive real growth going forward. 

Continuing tensions in North Africa and the Middle East underlined gold’s strength as the metal was up US$9 to US$1,436 per oz. Gold miners moved in-step with the metal as evidenced by the Global Gold index climbing 17 points to finish at 397.29 points. 

The diversified miners also tracked higher on the back of stronger copper, aluminum, nickel, tin and lead prices. The Capped Metals and Mining index was up 9 points to 1,425.48. 

Starcore International Mines shares were the week’s largest gainer by percentage, shooting up 67% to 15¢. The upswing came after Starcore announced that Goldcorp had cancelled the subordinated security interest it held over its mining properties. Goldcorp held the interest as collateral on silver sales to be made by Starcore to Goldcorp from its San Martin mine in Mexico. The cancellation signals that Goldcorp is either sufficiently confident in Starcore’s ability to provide the silver, or that it no longer requires the metal from the company. Starcore had agreed to sell Goldcorp silver production at the prevailing spot price until 2029. 

After initially dropping on word that Russia’s Atomredmetzoloto (ARMZ) was making a smaller offer for it, Mantra Resources rebounded for the period and finished 25% higher at $6.68. Mantra announced it would accept the new offer for the company and its key asset, the Mkuju River uranium project in Tanzania.

The lower price was good news for Uranium One which has a deal with ARMZ to buy Mantra from it within a specified time frame. While initially ARMZ had agreed to buy Mantra for A$8 per share, the revised offer comes in at A$7.02 per share. The new offer came in light of the fall in market cap of nearly all uranium companies in the wake of Japan’s nuclear plant disaster. 

Year-end results and a resource update sent Silver Bear Resources shares up 24% to close at 93¢. The rise came courtesy of a new resource estimate at its Mangazeisky silver project in Russia, which put 1.1 million tonnes of 514 grams silver for 18 million oz. in the indicated category, and 1.7 million tonnes of 554 grams silver for 31 million oz. in the inferred category.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Uranium OneUUU922284.744.154.35+0.42

Lundin MngLUN331267.737.077.63+0.29

Kinross GoldK3041416.3714.5115.76+1.30

MagIndustriesMAA284080.160.120.15-0.02

Equinox MinlsEQN282045.605.005.46+0.22

Eastern PlatinELR273151.411.321.39+0.07

Centamin EgyptCEE228822.242.032.22+0.22

Energy FuelsEFR222570.670.490.60+0.13

Cons Thomp IrnCLM1900117.1817.0317.17+0.08

Starcore Int VSAM182910.170.090.15+0.06

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Starcore Int VSAM182910.170.090.15+66.6

Energy FuelsEFR222570.670.490.60+27.6

Golden MnlsAUM12323.7817.8422.59+27.0

TriAusMinTOR3990.210.170.19+26.6

Diamond FieldsDFI4100.440.340.39+25.8

Mantra ResMRL66816.736.556.68+25.0

Extract ResEXT499.107.719.10+24.6

Silver Bear RsSBR14061.030.730.93+24.0

Talon MetalsTLO9162.672.142.55+20.8

NGEx ResNGQ32681.831.471.80+20.0

Crosshair E&MgCXX24791.451.141.14-17.3

Olympus PacifOYM22480.490.400.42-14.2

BRC DiamondCrBCD200.150.120.12-14.2

Torex GoldTXG84202.101.691.77-13.6

St. AugustineSAU1591.000.900.91-13.3

White Tigr GldWTG163.653.123.25-12.1

MagIndustriesMAA284080.160.120.15-11.7

Pac NW CapPFN4240.290.260.26-10.3

INV MetalsINV3870.720.650.65-9.7

Greystar ResGSL79293.002.372.49-9.4

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Golden MnlsAUM12275522.59+4.81

First QuantumFM1922915125.84+4.24

Silver WheatonSLW887166042.95+3.70

Imperial MetalIII32731322.21+3.35

Newmont MngNMC4852153.43+3.03

Coeur d AleneCDM34346933.93+2.95

Detour GoldDGC173775632.61+2.79

First MajesticFR641440719.53+2.73

Potash Cp SaskPOT930781256.12+2.41

Pan Am SilverPAA147826736.50+2.35

Inmet MiningIMN138744062.78-2.96

Teck ATCKA1239553.50-0.93

Horizns G BearHGD22835339.69-0.89

AgriumAGU363115787.77-0.73

Teck BTCKB1444364552.66-0.71

SouthGobi ResSGQ233113414.06-0.69

White Tigr GldWTG158503.25-0.45

China Gold IntCGG27221855.41-0.37

Torex GoldTXG84204391.77-0.28

Greystar ResGSL79294142.49-0.26

TSX Venture Exchange

The S&P-TSX Venture composite index jumped 70.16 points in the March 21-25
period to end at 2,314.03, but is still short of its 2,439.83-point peak before the Japan
earthquake severely disrupted markets. 

Sixty-two Venture-listed companies hit 52-week trading highs and 56 fell to new lows. Volume was down to a daily average of 142 million shares traded.

With silver prices already sending silver stocks upwards, Wildcat Silver was well placed to release two sets of high-grade intercepts from its Hermosa project in Arizona. Results included 100.3 metres grading 153.4 grams silver per tonne, 13.79% manganese, 4.25% zinc, 3.72% lead and 0.19% copper, and 13.7 metres of 332.9 grams silver, 7.43% manganese, 0.31% zinc, 4.35% lead and 0.14% copper. The results were enough to propel the company’s share price up 73¢ to $2.15 on 12.7 million shares traded. 

Mustang Minerals galloped ahead after releasing platinum and palladium results from its Mayville property in southeastern Manitoba. Some 48.8 million shares were traded as the company rocketed from 12¢ to a peak of 42¢ before ending the period up 18¢ or 150% at 30¢. Drill hole 11-07 hit 9.15 metres grading 9.5 grams of combined platinum and palladium per tonne and 0.27 gram rhodium from 55.5 metres depth, within a wider interval of 41.2 metres carrying 2.9 grams platinum and palladium. 

A significant partnership with a private Turkish mineral company had Tirex Resources climbing 41¢ to $1.20. The memorandum of understanding has Ekin Maden funding the development of six historic deposits at Tirex’s Mirdita project in Albania. Tirex will spin out the gold-copper-zinc-silver deposits into a new company equally owned by Tirex and Ekin Maden. Tirex controls a 344-sq.-km land package containing 17 historic deposits in the country.

 Orbite Exploration is pushing forward with a patented aluminum refining method at its Quebec-based Grande-Vallée aluminum property and now has far more material to test. A technical report has tripled the previous estimate of contained alumina at the Marin sector of the property, now estimated at 400 million to 500 million cubic metres, which the company reports is the equivalent to 1 billion indicated tonnes of 23.13% aluminum oxide. The alumina at Marin is contained in cl
aystone that the company’s method is designed to process. Orbite’s share price climbed 73¢ to an all-time high of $3.32 on 15 million shares traded.

Rare Element Resources was the week’s biggest value gainer, up $1.88 to $12.10 on no clear news. The company announced its geological team for the 2011 exploration and development programs at its Bear Lodge rare earth element and Sundance gold projects in Wyoming, on which it expects to spend $15 million.  

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Mustang MinlsMUM488110.410.120.29+0.18

Encanto PotashEPO164110.520.380.40-0.09

Orbite Expl AORTA149643.502.673.32+0.73

Great WesternGWG128110.940.790.89+0.12

Wildcat SilverWS127252.451.502.15+0.73

Allana ResAAA125731.871.521.81+0.17

Midlands MinlsMEX96630.280.220.27+0.06

Hudson River MHRM95840.170.090.11+0.02

Copper Fox MtlCUU94052.061.811.90+0.07

Abcourt MinesABI92810.250.170.19+0.01

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Mustang MinlsMUM488110.410.120.29+163.6

Messina MinlsMMI34540.190.090.16+100.0

Gray Rock ResGRK450.120.070.12+71.4

Intl Samuel ExISS1600.250.150.23+64.2

Network ExplNET22840.120.080.11+57.1

Ring of Fire RROF42170.150.090.14+55.5

Tirex ResTXX42421.220.761.20+51.9

Wildcat SilverWS127252.451.502.15+51.4

Max ResMXR4200.530.380.51+50.0

Champion BearCBA130.300.230.30+50.0

Solid ResSRW19260.160.120.12-29.4

Actus MnlsAAC1300.120.110.11-26.6

Rome ResRMR4170.580.480.48-25.0

Menika MiningMML670.050.030.03-25.0

Luiri GoldLGL300.120.120.12-25.0

Mukuba ResMKU1540.280.210.21-25.0

CangoldCLD1970.090.070.07-22.2

Caribou CopperCKR620.210.170.18-21.7

Hudson ResHUD14651.350.990.99-21.4

Ansell CapitalACP3680.350.300.30-21.0

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Rare Elemnt RsRES176331412.10+1.88

Chesapeake GldCKG13996911.74+1.39

Bear Creek MngBCM125514011.20+0.80

Orbite Expl AORTA149644243.32+0.73

Wildcat SilverWS127249482.15+0.73

IMPACT SilverIPT29563972.83+0.58

Avino SilverASM6698343.40+0.55

Fortress MnlsFST778755.00+0.50

Geomega ResGMA3378934.45+0.50

African Aura MAUR1164374.65+0.49

Rainy River RsRR304554510.65-0.65

Hana MngHMG51713853.26-0.43

Pac Booker MinBKM196468.00-0.38

Cayden ResCYD1253103.55-0.35

Hudson ResHUD14648240.99-0.27

Stans EnergyRUU62507191.95-0.26

Batero GoldBAT7718304.59-0.25

Providence CapPV1294501.12-0.23

Reunion GoldRGD24019491.70-0.22

Gold CanyonGCU42071053.17-0.19

U.S. markets

U.S. equity markets posted stronger results in the March 21-25 trading week with the Dow Jones industrial average edging up 362.07 points to 12,220.59, and the S&P 500 index rising 34.60 points to 1,313.80. The Philadelphia Gold and Silver index increased 10.36 points to 214.66, while the spot price of gold in New York ended at US$1,416.80 per oz., down US$2.90 per oz.

The strong outlook for iron ore and steel production helped Cliffs Natural Resources gain US$6.46 per share to US$94.41. On March 24, Reuters quoted the company’s chief financial officer Laurie Brlas as saying that Cliffs anticipates shipping roughly 31 million tonnes of iron ore a year to Asian markets within the next few years as demand continues to grow in China and Japan.

Coal companies continued to add significantly to their share prices during the week as uncertainty over Japan’s unfolding crisis at its Fukushima plant clouded the outlook for nuclear energy. Massey Energy rose US$6.10 to US$68.23 and Alpha Natural Resources climbed US$4.77 to US$60.05. 

Silver’s surging bull market buoyed the shares of Coeur d’Alene, the largest U.S.-based primary silver producer and a growing gold producer. It shares gained US$3.10 per share to US$34.54 on no news. Silver Wheaton, meanwhile, added US$3.89 to end at US$43.80 per share on news that it had boosted attributable reserves by more than 9% in 2010. It was the sixth year in a row that the silver streaming company increased its reserves, which reached a record 954 million silver-equivalent oz. at the end of 2010. Attributable measured and indicated resources during the same period rose 1% to 377 million silver-equivalent oz., while inferred resources jumped 22% to 497 million silver-equivalent oz.

Finally, Rare Element Resources was up 18.9% to US$12.37 per share on no news. On March 15, the company reported an inferred resource estimate for its Sundance gold project in the Bear Lodge Mountains in northeastern Wyoming. Inferred resources tally 69.3 million tonnes averaging 0.42 gram gold per tonne using a 0.15 gram gold cutoff grade, for 947,000 contained oz. gold in three deposits.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Freeport McMo*FCX9528955.2551.2154.55+2.77

Alcoa*AA9527417.2416.2617.09+0.98

Silver Wheatn*SLW7154446.0040.8343.80+3.89

Hecla Mining*HL582179.538.418.98+0.64

Intl Coal Gp*ICO5413011.5010.0611.05+1.05

Kinross Gold*KGC4696616.8014.8616.07+1.38

Newmont Mng*NEM4083755.6051.0253.96+3.07

Cameco Corp*CCJ3733032.8230.5131.17+1.77

Barrick Gold*ABX3578652.8549.9951.51+2.11

Potash C Sask*POT3519058.1754.3657.23+2.71

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Silver Dragon*SDRG41190.180.100.17+70.0

Elray Res*ELRA17880.050.030.05+66.6

China Shen Zh*SHZ14535.423.414.36+28.2

Mines Managem*MGN24113.122.542.92+21.1

Vista Gold*VGZ69154.283.333.87+19.4

Rare Elemt Re*REE2227613.4410.2712.37+18.9

Harmony Gold*HMY3115414.6811.9914.10+18.7

Argentex Mng*AGXM14621.341.101.29+17.2

Oromin Expl*OLEPF961.321.111.32+15.7

Uranerz Energ*URZ134613.893.263.57+15.1

Apolo Gold*APLL180.190.110.15-25.0

Tombstone Exp*TMBXF2830.090.060.08-20.0

Crosshair E&M*CXZ6241.471.161.16-15.3

Legend Intl H*LGDI9170.840.700.74-9.7

Gold Am Mng*SILA5910.160.130.14-6.6

Am Engy Field*AEFI4970.870.510.78-6.0

Cornerstone C*CTNXF350.540.470.47-6.0

Claude Res*CGR18872.572.352.41-5.4

Canarc Res*CRCUF2610.200.170.18-5.2

SinoCoking Cl*SCOK86310.559.729.84-4.6

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Cliffs Nat Rs*CLF1812915394.41+6.46

Massey Energy*MEE2226760768.23+6.10

Alpha Nat Res*ANR3308837660.05+4.77

Silver Wheatn*SLW7154360843.80+3.89

Mosaic*MOS1773226178.82+3.29

Coeur d Alene*CDE2239325534.54+3.10

Newmont Mng*NEM4083710653.96+3.07

Mesabi Trust*MSB70385438.80+2.97

Randgold Res*GOLD302494176.10+2.91

Soc Quim&M Ch*SQM172689254.72+2.86

Agrium*AGU271138189.46-0.62

Teck B*TCK2114723253.70-0.52

SinoCoking Cl*SCOK8628779.84-0.48

Crosshair E&M*CXZ6238781.16-0.21

Natural Rs Pt*NRP48114335.23-0.18

Uranium Ener*UEC65656254.10-0.18

Claude Res*CGR18868042.41-0.14

Taseko Mines*TGB113866275.81-0.13

Legend Intl H*LGDI9166540.74-0.08

PolyMet Mng*PLM11032422.05-0.05