Toronto Stock Exchange
The commodities sector asserted its stren-gth over the April 4-8 period but failed to take the heavily resource-weighted TSX composite index along for the ride. The index was off 4 points for the period, finishing at 14,208.43 points.
Stronger prices for copper, aluminum, nickel, tin, lead and zinc had the Capped Metals & Mining index rising 52 points to 1,538.12, while silver prices broke above the US$40 per oz. mark and gold climbed US$37 to US$1,469.50 per oz. The Global Gold index was up 21 points to 415.46.
The Bank of Canada’s Business Outlook Survey showed that businesses were anticipating rising inflation largely due to higher energy prices. Still, domestic demand indicators suggested inflation wou-ldn’t be a near-term problem, and the Bank of Canada was seen as not likely to raise rates until July.
As French-backed troops stormed the presidential palace in Côte d’Ivoire, the stocks of both Cluff Gold and La Mancha Resources came back to life. Both companies had halted gold mining operations in the country due to the political violence that broke out after reigning president Laurent Gbagbo lost an election but refused to cede power. At presstime, Gbagbo was said to have been arrested. Cluff shares were up 36% to $1.90 for the period, while La Mancha shares were up 6% to $2.31.
The other big news of the week surrounded Equinox Minerals. The copper miner’s shares jumped 34.3% to $7.35 after news that Minmetals Resources was launching a $6.3- billion bid for the company. The Hong Kong-listed company, whose largest shareholder is Beijing-based China Minmetals Group, said the offer would be contingent on Equinox dropping its bid for Lundin Mining, which was made at the end of February.
The news was good for Golden Predator as well, as the company continues to expand the Bohemian zone at the Brewery Creek gold project in the Yukon. The company’s latest drilling was highlighted by 28 metres of 5.06 grams gold per tonne and 10 metres of 3.56 grams gold. Golden Predator shares were up 26% to $1.12 for the period.
The news wasn’t so good for Ivernia, however, which saw its share price fall by 44% to 22¢ after announcing that it had voluntarily halted all operations at its Magellan lead mine in Western Australia. The shutdown came after a sample of dried mud from the bottom of a shipping container coming out of the mine site tested positive for lead contamination. The company said there is no risk to public safety. Initial inquiries also indicate that there has not been a breakdown in the washing and inspection procedures for shipping containers leaving the mine site. While the precise origin of the
mud is still unknown, the company says it has initiated a clean-up and is a comprehensively reviewing all its mining activities.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Equinox MinlsEQN1154247.847.357.67+1.96
Lundin MngLUN475528.157.817.97-0.36
B2GoldBTO323773.572.933.45+0.49
Romarco MnrlsR288471.991.811.87-0.01
Uranium OneUUU273004.073.883.99+0.08
Baja MngBAJ257601.251.111.24+0.14
Kinross GoldK2306016.0114.7815.90+1.12
Crowflight MnlCML228870.120.090.10+0.02
Eastern PlatinELR226281.421.301.39+0.08
GoldcorpG1886952.1447.4052.14+4.73
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Crescent GoldCRA59440.080.050.07+40.0
Cluff GoldCFG272.101.751.90+35.7
Equinox MinlsEQN1154247.847.357.67+34.3
South Am SilvrSAC64053.152.263.15+31.8
Extorre Gold MXG20017.465.587.35+31.7
Silver Bear RsSBR14021.190.871.19+30.7
Western CopperWRN45594.153.254.07+26.0
Tahoe ResTHO138024.4119.4324.30+25.9
Golden PredatrGPD31801.270.891.12+25.8
Endeavr SilverEDR404912.199.6311.85+25.5
IverniaIVW110230.400.200.22-43.5
Ram PowerRPG32841.271.011.02-20.9
Talon MetalsTLO34742.902.322.32-16.5
Homeland EnrgyHEG14840.060.050.06-14.2
Crystallex IntKRY34970.160.120.12-14.2
Horizns G BearHGD33609.998.778.82-11.3
MagIndustriesMAA59730.180.160.16-11.1
Dalradian ResDNA3722.151.851.93-11.0
TimmincoTIM16330.470.400.41-10.8
Nautilus MinlsNUS3523.052.652.65-10.4
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
First QuantumFM2709561136.70+6.82
Pan Am SilverPAA263178840.83+5.15
Tahoe ResTHO137977124.30+5.00
GoldcorpG1886935852.14+4.73
Teck BTCKB1555312554.91+3.66
Silver WheatonSLW1091957044.92+3.57
Allied NevadaANV102122439.00+3.40
Newmont MngNMC7785255.36+2.76
Silver Std ResSSO114452833.61+2.76
Teck ATCKA1840955.27+2.71
Potash Cp SaskPOT1029011455.60-2.41
Horizns G BearHGD33597028.82-1.13
AgriumAGU342755288.26-1.10
North Am En PaNOA4820711.08-0.94
Cameco CorpCCO755811028.62-0.82
Major DrillingMDI62689616.15-0.78
SouthGobi ResSGQ65974613.76-0.64
Talon MetalsTLO34744472.32-0.46
Alamos GoldAGI472796514.78-0.44
Russell MetalsRUS82148627.00-0.42
TSX Venture Exchange
The S&P-TSX Venture composite index climbed 90.39 points in the April 4-8 period to close at 2,388.79 points. Activity was up from recent weeks at an average of 169
million shares traded daily, while some 89 juniors hit new 52-week highs and 57 fell to new lows.
Richfield Ventures was the big news-maker of the week as it climbed $2.09 to $10.02 after New Gold made an all-share bid to buy it for $550 million. While Richfield’s share price climbed significantly, it still came short of the offer value of $10.38 per Richfield share. New Gold is looking to buy the early-stage Blackwater gold project in British Columbia where a recent resource estimate established 1.8 million indicated oz. gold and 2.3 million inferred oz. gold.
Roxgold was the week’s breakout star,
rising 54¢ or 174% to end at 85¢ on 14 million shares traded, despite its shares being halted for three days. Trading was activated on April 8 after the company announced spectacular drill results from its Yaramoko gold project in Burkina Faso. Results included hole 55 that hit 20 metres of 28.61 grams gold per tonne from 6 metres, then at 38 metres the same hole hit 11 metres averaging 4.88 grams gold, while hole 36 cut 10 metres of 14.9 grams from 76 metres depth. Roxgold is earning a 60% interest in the project from Riverstone Resources, which climbed 30¢ to $1.02 in the period.
Not far behind, White Tiger Mining was up 49¢ or 153% to end at 81¢ after releasing preliminary drill results from its Marshall Lake copper-gold-silver project in Ontario. Assay results for hole 11-21 were not available yet, but the company reports that the hole hit two significant zones including a 101-metre section of chalcopyrite stringer from 3 metres depth, followed by a second zone of 57 metres. The new hole was drilled 300 metres southeast of discovery hole 08-06.
Amazon Mining climbed $1.30 to end at $9.75. The company announced that the Minas Gerais state government in Brazil signed a memorandum of understanding to provide financial support for Amazon’s Cerrado Verde potash project. Details such as the scale of possible assistance were not included, but the state has committed to provide support implementing and operating project, especially with financing and streamlining permits and licences.
< p>Bravo Gold regained some lost ground, more than doubling its share price with an 8.5¢ climb to 16¢ on 29.2 million shares traded. The company hit a 52-week high of 37¢ per share last April but has since been sliding. On April 16, 2011, Bravo released an updated resource for one of the deposits at its Homestake Ridge gold project in northwest B.C. that more than doubled the contained gold oz. The project now hosts 191,000 indicated oz. gold and 1.35 million indicated oz. silver, plus 530,000 inferred oz. gold and 13.5 million inferred oz. silver.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Aurcana CorpAUN364760.940.750.79-0.08
Bravo GoldBVG291730.170.080.16+0.09
Orbite Expl AORTA152124.543.564.43+0.52
Geo MineralsGM152060.120.060.10+0.03
Placer DomePDG147870.690.490.66+0.22
Copper Fox MtlCUU147752.741.882.69+0.77
RoxgoldROG140760.950.320.85+0.54
Allana ResAAA131402.091.791.94+0.13
White Tiger MgWTC115340.810.330.81+0.50
Richfield VentRVC1039310.349.4010.02+2.09
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
RoxgoldROG140760.950.320.85+174.1
White Tiger MgWTC115340.810.330.81+161.2
Rainy Mtn RoylRMO21010.330.140.30+130.7
Bravo GoldBVG291730.170.080.16+128.5
Northern LionNL43450.540.250.53+96.3
Stroud ResSDR44710.170.090.16+60.0
Amato ExplAMT3690.140.090.14+55.5
CangoldCLD23160.140.090.12+50.0
Placer DomePDG147870.690.490.66+50.0
Indigo ExplIXI8350.510.330.49+48.4
Nomad VenturesNMD330.230.200.20-39.3
African Aura MAUR1015.003.013.01-34.5
Bonanza ResBRS7290.320.250.25-34.2
Boss PowerBPU1870.150.140.14-30.0
Mill Bay VentMBV1050.230.190.19-29.6
Belmont ResBEA57590.070.040.05-28.5
Strait GoldSRD3050.130.100.11-26.6
IGC ResIGC200.060.060.06-25.0
Pinestar GoldPNS3090.400.310.31-24.3
Hudson River MHRM4680.140.100.10-23.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Richfield VentRVC1039278010.02+2.09
Amazon MngAMZ6107259.75+1.37
Rare Elemnt RsRES187787713.71+1.09
Clifton StarCFO10526224.35+0.91
Chesapeake GldCKG19033112.98+0.90
Wildcat SilverWS60849422.91+0.80
Copper Fox MtlCUU147748262.69+0.77
Batero GoldBAT7035105.10+0.71
Maudore MinlsMAO2409536.40+0.70
Gold CanyonGCU34701074.00+0.62
African Aura MAUR1009463.01-1.59
Geomega ResGMA5399143.90-0.51
Riva GoldRIV5576841.63-0.26
Reunion GoldRGD15896172.09-0.21
Mansfld MnrlsMDR1967382.62-0.13
Bonanza ResBRS7285500.25-0.13
Nomad VenturesNMD330000.20-0.13
Callinan MnsCAA3359273.21-0.12
Contintl NicklCNI175301.74-0.12
Pinestar GoldPNS3087900.31-0.10
U.S. market
During the April 4-8 trading week, the Dow Jones industrial average inched up 3.33 points to close at 12,380.05, while the S&P 500 index dropped 4.24 points to finish at 1,328.17. The Philadelphia Gold and Silver index climbed 14.02 points to 228.95.
With the price of silver breaking through US$40 per oz. for the first time since 1980, when it touched a record US$50.35 per oz., mining silver has become a very profitable business. Shares of Pan American Silver gained US$5.72 a share to close the trading week at US$42.65 on no news, while shares of BHP Billiton, which mines about 42 million oz. silver a year at its Cannington mine in Queensland, also jumped with a gain of US$4.48 to US$101.32.
Goldcorp increased US$5.21 per share to US$54.44 on news of an updated feasibility study for its recently acquired Cerro Negro gold project in Argentina. Highlights included average annual gold production for the first five years of about 550,000 oz. with average cash costs of less than US$200 per oz. gold. The study estimates that Cerro Negro will have a mine life of 12 years with initial production starting in mid-2013. Throughput would be 4,000 tonnes per day and capex to full production would amount to US$750 million. Reserves have also increased 100% to 4.3 million oz.
Randgold Resources climbed US$3.60 to US$87.20 per share on no news, while Allied Nevada was up US$3.50 per share to US$40.56, in part due to a first quarter earnings report. The company announced preliminary first quarter operating results for its Hycroft gold mine near Winnemucca, Nev., with production of 20,718 oz. gold and 61,751 oz. silver.
In terms of specialty metals, rising antimony prices helped send US Antimony skyward, up 167.2% to US$1.47 per share. Prices of 99.6% antimony metal were running at an average of US$14,950 per tonne in February 2011, up from US$6,661 per tonne in February 2009, according to Metal Bulletin. In 2010, US Antimony’s revenues jumped 121% year-on-year with a profit of US$805,213 on sales of US$9.07 million. In 2009, the company lost US$343,492 on sales of US$4.1 million.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA12855618.4717.4217.92+0.45
Freeport McMo*FCX8380358.7555.1157.23+2.15
Silver Wheatn*SLW7338247.6043.6646.91+4.08
Hecla Mining*HL469359.959.049.76+0.76
Newmont Mng*NEM4546859.2854.2057.99+3.62
Barrick Gold*ABX4462454.8951.2254.37+3.10
Goldcorp*GG4089154.5049.0954.44+5.21
Potash C Sask*POT3873861.8057.5558.06-2.21
Kinross Gold*KGC3838516.7415.3116.60+1.24
Rare Elemt Re*REE3604315.6013.1214.42+1.40
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
US Antimony*UAMY16111.570.561.47+167.2
Tri-Valley*TIV194170.830.570.80+48.1
Western Coppr*WRN14304.353.374.24+27.7
Radius Gold*RDUFF1430.760.610.76+24.5
Mag Silver*MVG31814.7511.6114.48+22.7
Almaden Mnls*AAU70145.153.944.69+20.8
Lake Vict Mng*LVCA5810.310.220.30+20.0
Gold Am Mng*SILA7360.130.100.12+20.0
China Shen Zh*SHZ14906.504.605.71+18.7
Minefinders*MFN537115.3812.9815.31+18.2
Puda Coal*PUDA217212.255.786.00-50.7
Grandview Gld*GVGDF130.060.040.04-33.3
SinoCoking Cl*SCOK31479.195.756.02-32.2
Am Engy Field*AEFI3750.800.560.58-22.6
Li3 Energy*LIEG10150.350.250.27-20.5
Elray Res*ELRA12940.050.040.04-20.0
Crystallex In*KRY97340.160.120.14-17.6
Infrastrc Mat*IFAM1360.180.150.15-16.6
Fischer-W Gld*FWGO1300.050.040.05-16.6
Tara Gold*TRGD1400.380.300.32-15.7
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Pan Am Silver*PAAS1499511042.65+5.72
Goldcorp*GG4089080654.44+5.21
BHP Billi-BHP*BHP17246155101.32+4.48
Teck B*TCK2248316457.35+4.19
Silver Wheatn*SLW7338175346.91+4.08
BHP Billi-BBL*BBL767059684.52+3.89
Newmont Mng*NEM4546779357.99+3.62
Randgold Res*GOLD494257087.20+3.60
Allied Nevada*ANV67186240.56+3.50
Silver Std Re*SSRI740230935.08+3.12
Puda Coal*PUDA21715446.00-6.19
Peabody Enrgy*BTU2659327768.11-4.60
Alpha Nat Res*ANR2116934857.10-3.16
SinoCoking Cl*SCOK31471896.02-2.87
Massey Energy*MEE1472787566.66-2.60
Potash C Sask*POT3873805258.06-2.21
Mosaic*MOS1924959278.41-1.96
OM Group*OMG92572335.20-1.60
Mesabi Trust*MSB62802939.96-1.57
Mechel*MTL265949730.07-1.16
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