Toronto Stock Exchange
Silver and gold were the theme of the holiday shortened April 18-21 period, and the strength of the two metals helped ensure that the TSX composite index would finish higher than where it began. The index gained 234 points to move up to 13,972.
Despite a highly touted report from Goldman Sachs warning of a pullback in gold prices, the yellow metal shrugged off all naysayers and surged to a historic mark as it broke through the US$1,500-per-oz. barrier. The metal finished at US$1,504 per oz., up US$16. The Global Gold index tracked the metal higher as it was up 15 points to 412.62. Silver also reached lofty heights as it broke above the US$45-per-oz. mark and finished at US$46.26.
The Capped Metals & Mining index rose for the period as it gained 70 points to finish at 1,477.36. That gain came on the back of stronger copper, aluminum and tin prices.
With all the strength in commodity prices, it should come as little surprise that the Canadian dollar continued to find favour with investors. The loonie made a new three-and-a-half-year high of US$1.05. Beyond commodity prices, a weaker greenback and strong economic data suggesting future rate hikes were seen as the key drivers behind the currency’s surge.
MagIndustries was the period’s biggest percentage gainer. The company’s shares jumped 47% to 22¢. The spike came thanks to investment dollars from China, as Evergreen Industries, a diversified industrial company based in Shanghai, made a friendly, all-cash, $115-million takeover offer, which would give shareholders 25¢ per share. MagIndustries has been developing potash assets in the Republic of Congo.
The second-largest percentage gainer was Banro, which also benefited from the interest of the Chinese. The junior gold company with operations in the Democratic Republic of the Congo (DRC) had the markets buzzing after a document claiming to be from management, hinted at a high-level deal in the works. Although Banro flatly denied the document came from its management, its shares still began to climb steeply. Just days later, the company announced that it had entered into a memorandum of understanding with China Gold International Resources to jointly develop its gold properties in the eastern DRC. Banro shares were up 30% to $3.51.
Mandalay Resources also made significant gains over the period. The company’s shares were up 23% to 87¢ on the heels of an updated resource estimate that replaces all of the depleted reserves at its Costerfield gold-antimony mine in Victoria, Australia. The estimate extends the mine’s reserve life well into 2012 and shows that mineralization extends at depth. Those deeper zones will be tested as part of its 2011 drill program, the company says.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR387371.251.061.17-0.13
MagIndustriesMAA316260.230.150.22+0.07
Equinox MinlsEQN243197.547.427.500.00
Kinross GoldK1839815.0714.3114.63-0.41
Lundin MngLUN164868.017.578.00+0.05
Alexis MinlsAMC135330.120.100.11-0.02
Teck BTCKB1242554.2547.8453.83+4.00
IAMGold CorpIMG1224820.2318.7719.56+0.29
Yamana GoldYRI1156712.6211.8712.18-0.12
GoldcorpG1128353.1650.8353.07+1.02
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
MagIndustriesMAA316260.230.150.22+46.6
Banro ResBAA75253.552.653.51+30.0
Red Cresc ResRCB1680.440.360.44+29.4
Extorre Gold MXG39569.586.849.00+28.9
Peregrine MtlsPGM7711.491.221.48+25.4
Golden QueenGQM11543.823.083.76+25.3
EMC MetalsEMC33190.320.250.31+24.0
Mandalay ResMND18450.870.680.87+22.5
Chieftain MtlsCFB2665.854.805.85+21.8
Primero MngP23085.094.155.00+18.7
White Tigr GldWTG1222.852.292.40-20.0
Emed MiningEMD27620.250.200.21-16.0
Petaquilla MnlPTQ14461.020.820.85-15.8
Alexis MinlsAMC135330.120.100.11-15.3
Aeroquest IntlAQL1901.030.920.92-14.8
Dejour EnterpDEJ8130.400.360.36-14.2
PC GoldPKL13221.050.880.92-14.0
Forsys MetalsFSY4262.091.781.78-14.0
Redzone ResREZ590.590.490.58-13.4
Dalradian ResDNA22371.801.401.60-13.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
First QuantumFM1715798129.97+10.96
Royal GoldRGL5574557.37+5.57
Teck ATCKA2415754.99+4.24
Teck BTCKB1242493653.83+4.00
Inmet MiningIMN80134169.78+3.16
Sprott Ph SilvPHSU116587722.16+2.58
Franco-NevadaFNV233508037.93+2.40
Agnico-EagleAEM282269664.99+2.27
AgriumAGU218486987.16+2.04
Extorre Gold MXG39564619.00+2.02
Major DrillingMDI56620515.69-0.86
Pan Am SilverPAA124076535.70-0.86
Labdr Iron MnsLIM71034512.88-0.66
Labdr I-Ore RoLIF_U20320675.85-0.66
White Tigr GldWTG1218872.40-0.60
SouthGobi ResSGQ35020512.18-0.48
First MajesticFR436890022.25-0.46
Silver WheatonSLW1015246440.45-0.45
Grande Cache CGCE81784608.54-0.44
Northern Dyn MNDM60615313.50-0.44
TSX Venture Exchange
The shortened trading period of April 18-21 had the S&P-TSX Venture composite index ending down 9.27 points at 2,281.64. Volume was up, averaging 208.3 million shares traded daily. However, as the bears surged past the bulls, 66 juniors hit new 52-week lows and 39 hit new highs.
Newstrike Capital jumped 65¢ to an all-time high of $2.29 on 9.8 million shares traded after releasing impressive drill results from its Ana Paula gold project in Mexico’s Guerrero state. Hole 37 hit 231 metres averaging 7.51 grams gold per tonne from 3 metres depth, and after a 9-metre gap hit a further 80.3 metres carrying 1.29 grams gold. Hole 35 hit 87.2 metres of 0.95 gram gold from 116 metres.
Great Western Minerals was once again the most-traded stock, with just under 15 million shares traded. It shares rose 3¢ to 81¢ following the announcement that the company is targeting an earlier production schedule at its 70%-owned Steenkampskraal rare earth project in South Africa, with immediate plans to start refurbishing the historic mine and associated infrastructure. Great Western is evaluating whether a full feasibility study is necessary, and will start development work once its program is approved by the National Nuclear Regulator of South Africa.
Chile-focused Samex Mining was one of the biggest percentage gainers, up 46¢ or 62.3% to $1.20 on 4.9 million shares traded after releasing early exploration results. At its Cinchado gold project, the company’s three holes missed their intended target, though a geophysical survey identified several anomalies. At its Milagro gold project, Samex again missed the target for hole 10-01, but did intersect continuously detectible gold values between 53 and 369 metres, while a 900-metre step-out hole cut detectible levels of gold between 261 and 373 metres, and a hole at its Milagro Pampa project hit detectible gold and copper from 150 to 500 metres depth, with all three holes hitting some short high-grade gold intervals.
Canaco Resources was up 44¢ to $4.76 after announcing plans to spin out its wholly-owned subsidiary Tigray Resources, which holds a 70% interest in the Harvest copper-gold-silver volcanogenic massive sulphide project in Ethiopia. Canaco has drilled 12 holes at the project so far, the best intercepting 52.1 metres grading 4.10% copper, 1.55 grams gold and 25.97 grams silver from 46 metres depth.
Sinchao Metals shares tanked after news that it did not actually hold a significant portion of the titles to its Sinchao polymetallic project in Peru. The lost claims contain roughly 40% of the existing inferred resource of 237 million tonnes grading 0.47% copper, 0.49 gram gold and 12.1 grams silver with a 0.27% copper cutoff. The company’s share price dropped 13¢ to end at 12¢ on 4.5 million shares traded.TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Great WesternGWG149740.810.660.81+0.03
Orbite Expl AORTA139634.703.624.39-0.41
Creston MolyCMS128100.580.510.560.00
Duran VentDRV106470.380.350.360.00
Newstrike CapNES97652.521.462.29+0.65
Aurcana CorpAUN86130.830.700.76-0.06
Copper Fox MtlCUU73552.752.252.59+0.16
Geo MineralsGM68890.130.090.12+0.02
Orko SilverOK61763.192.573.13+0.41
Western PotashWPX60001.211.061.18+0.02
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Lakewood MngLKW8160.050.030.04+100.0
Samex MngSXG48961.400.701.20+62.1
Kokanee MnlsKOK1270.240.160.24+60.0
Luiri GoldLGL1150.190.150.19+58.3
Midasco CapMGC3540.160.100.16+45.4
Anglo-BomarcANB460.130.110.13+44.4
Romios Gold RsRG45630.680.430.59+43.9
Newstrike CapNES97652.521.462.29+39.6
Am Creek ResAMK27560.160.130.16+33.3
Blue Sky UranBSK30190.250.190.24+33.3
Sinchao MtlsSMZ46100.220.090.12-52.0
MBMI ResMBR48030.160.050.08-50.0
Rainy Mtn RoylRMO7720.370.200.20-47.3
White Tiger MgWTC39900.800.470.47-41.2
Pro-Or Mng ResPOI29700.430.270.28-33.3
Roscan MinlsROS650.120.100.10-33.3
Alder ResALR8320.170.130.13-31.5
Darnley BayDBL24020.160.110.12-29.4
Gitennes ExplGIT10980.170.140.16-27.2
Cannon Pnt ResCNP2280.250.190.19-26.9
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Newstrike CapNES97651512.29+0.65
Gold CanyonGCU26315153.72+0.47
Samex MngSXG48960291.20+0.46
Canaco ResCAN29905194.76+0.44
Orko SilverOK61762533.13+0.41
Renaissnc GoldREN1734032.39+0.36
St Elias MnsSLI7919522.25+0.24
Callinan MnsCAA2291933.32+0.24
Rockhaven ResRK13161041.23+0.23
Titanium CorpTIC11753402.37+0.22
Rare Elemnt RsRES75298913.13-1.84
Amazon MngAMZ10378629.24-1.11
Tasman MetalsTSM13376554.87-0.65
Quest Rare MnlQRM24329407.44-0.51
Orbite Expl AORTA139630814.39-0.41
Avino SilverASM5668412.85-0.39
White Tiger MgWTC39900610.47-0.33
Chesapeake GldCKG7053812.75-0.33
Maudore MinlsMAO1716856.60-0.25
Eurasian MinlsEMX2277963.18-0.23
U.S. markets
U.S. equities were gaining momentum before markets closed on April 22 for Good Friday. The Dow Jones industrial average advanced 164.16 points in the abbreviated April 18-21 trading week to close at 12,505.99, while the S&P 500 index rose 172.9 points to 13,972.02.
With the American dollar under increasing pressure, the Philadelphia Gold and Silver index gained 7.08 points to close at 225.79. The Amex Gold Bugs index ascended 19.38 points to close at 595.93, up 3.4% for the week. Gold prices hit record highs above US$1,500 per oz. on April 20, lifting the shares of majors like Barrick Gold and Goldcorp to new 52-week highs (US$55.74 per share and US$55.80 per share, respectively). Precious metals royalty company Royal Gold, with interests in 33 producing mines, topped the week’s gains, jumping US$6.43 to US$60.20, on no news, while Agnico-Eagle Mines advanced US$2.79 to US$68.03, also on no news.
Banro enjoyed the week’s second-largest percentage gain, up 31.8% to US$3.73 per share, on news that it had signed a non-binding memorandum of understanding (MOU) with state-owned China Gold International Resources, China’s biggest gold producer. The MOU states the two companies “intend to cooperate” on the development of Banro’s flagship Twangiza gold property, including the proposed Phase 2 mine and related hydro-power project. The MOU states that the two companies also intend to cooperate on Banro’s other properties along the Twangiza-Namoya gold belt in the Democratic
Republic of the Congo. The MOU does
not, however, “create an obligation on the part of either party to consummate any transaction.”
Strong first quarter earnings pushed shares of Teck Resources up US$4.49 to US$56.43 per share. On April 18, Teck reported earnings attributable to shareholders reached $461 million, or 78¢ per share, in the first quarter. Adjusted quarterly profit was $450 million, or 76¢ per share, more than double the $198 million reported in the first quarter of 2010.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA10877517.0315.8816.97+0.45
Freeport McMo*FCX8872155.0049.7154.84+3.67
Silver Wheatn*SLW6997144.0039.9542.36-0.25
Hecla Mining*HL460789.478.719.46-0.15
Barrick Gold*ABX3157555.7452.0555.63+2.30
Kinross Gold*KGC2899715.6814.9415.35-0.32
Potash C Sask*POT2894858.7854.6857.96+2.26
Newmont Mng*NEM2825760.4557.2159.23+1.48
Goldcorp*GG2591255.8052.5655.67+1.49
Peabody Enrgy*BTU2300666.0562.0066.02+0.45
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Samex Mng*SMXMF35821.450.721.27+56.7
Banro Res*BAA25483.742.743.73+31.8
Geovic Mng*GVCM4010.730.510.64+20.7
Royal Gold*RGLD548160.7454.0360.20+11.9
Argentex Mng*AGXM5731.571.301.55+9.9
Cornerstone C*CTNXF100.480.420.48+9.0
Tri-Valley*TIV107900.790.550.75+8.7
Teck B*TCK1545957.0349.4356.43+8.6
North Am Pall*PAL127626.405.556.37+8.5
Richmont Mine*RIC24589.337.909.01+8.2
China Shen Zh*SHZ9326.174.394.45-28.9
America West*AWSR251.300.521.00-22.4
Elray Res*ELRA7950.050.030.04-20.0
Cream Mnrls*CRMXF4330.340.270.28-15.1
Petaquilla Mn*PTQMF5241.050.880.91-13.3
Crystallex In*KRY19930.150.130.13-13.3
El Capitan Pr*ECPN25810.980.780.84-13.4
Rare Elemt Re*REE1463516.0113.4913.66-12.5
Starfield Res*SRFDF440.080.070.07-12.5
Alberta Star *ASXSF1800.550.470.49-10.9
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Royal Gold*RGLD548128460.20+6.43
Teck B*TCK1545945556.43+4.49
Freeport McMo*FCX8872109654.84+3.67
Mosaic*MOS1672072076.77+2.97
Cliffs Nat Rs*CLF1026577097.22+2.87
Agnico-Eagle*AEM1065043068.03+2.79
Agrium*AGU199533691.31+2.78
Compass Mnls*CMP20503095.51+2.46
BHP Billi-BHP*BHP16375180102.23+2.43
BHP Billi-BBL*BBL775689984.52+2.32
Rare Elemt Re*REE1463474013.66-1.96
China Shen Zh*SHZ9322554.45-1.81
Pan Am Silver*PAAS998188037.42-0.65
Northern Dyn*NAK163081914.17-0.41
Mesabi Trust*MSB73918835.15-0.35
Intl Tower Hi*THM4294609.84-0.33
Kinross Gold*KGC2899676115.35-0.32
America West*AWSR249041.00-0.29
Silver Wheatn*SLW6997061342.36-0.25
Uranium Ener*UEC3167163.85-0.24
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