Toronto Stock Exchange
A positive turn in Europe’s debt crisis helped bolster global markets for the June 20-24 period, and the TSX was no exception. The TSX Composite Index climbed 120 points to finish at 12,908.89.
But the news wasn’t all good. Crude oil prices fell, and the Bank of Canada issued a warning that certain risks were increasing. Risks highlighted by the bank involved European sovereign debt concerns, U.S. debt and fiscal challenges, and higher household debt levels in Canada.
Despite falling gold prices, the Global Gold Index gained 4 points to finish at 358.11 points. The six-month price chart still shows a downward bias. The yellow metal itself was off US$41, and finished the period at US$1,500.90 per oz.
The Capped Diversified Metals & Mining Index also made a modest reversal of its slumping trend as it lifted 67 points, to close at 1,312.90. The prices for copper, nickel, tin lead and zinc were all higher, while aluminum prices were flat.
Zincore Metals‘ shares were the period’s largest gainer by percentage points. They surged 36% and finished at 38¢. The run came after the company released drill results from the Yanque deposit at its Accha zinc project in southern Peru. Highlights included 7.29% zinc equivalent over 56.9 metres, and 15.06% zinc equivalent over 13.6 metres. The company is drilling to determine locations in the early years of an open-pit mine plan.
Investors were also bullish on shares of Continental Precious Minerals. Buying pressure caused a 29% rise to 36¢. The increase came after Continental announced a lease agreement to further its exploration program in Sweden. The new land will be part of its MMS Viken licence, where it pushes ahead on a pre-feasibility study while looking for a joint venture agreement with a major mining company.
A move by a hedge fund to bring a new slate of directors to the Klondex Mines board bumped the company’s share price. Klondex shares were up 23% to $2.87 after announcing the dissident proxy by the fund. Klondex issued a statement urging investors not to vote for the fund’s slate. The hedge fund currently controls 8.1% of the company’s shares.
A financing proposal helped lift Niocan shares by 18% to $1.06, even though the company rejected the offer. The company said that Augyva Mining Resources offered to subscribe to 3.5 million units at a price of $1.15 per unit, so long as it could fill three of the four board seats.
The release of Orezone Gold‘s preliminary economic assessment for its Bomboré gold project in Burkina Faso showed that investors were hoping for more. After releasing the study, the company’s share price fell 25% to $3.19. The base case financial model in the study yielded an internal rate of return of just 9.9%.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR327840.910.830.860.00
Teck BTCKB2199746.4841.9645.95+2.29
Kinross GoldK1939715.3814.5214.94+0.21
Lundin MngLUN158957.006.426.80+0.35
Avion GoldAVR139631.921.611.84+0.23
Great Basin GoGBG130892.041.651.96+0.33
IAMGold CorpIMG1272019.4617.6117.73-0.40
Breakwater ResBWR125307.437.397.410.00
Eldorado GoldELD1202914.6513.0913.89+0.56
Yamana GoldYRI1106511.5711.0111.23+0.19
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Zincore MtlsZNC5490.380.290.38+35.7
Contl PreciousCZQ3450.380.260.36+28.5
BRC DiamondCrBCD23410.150.120.15+25.0
Klondex MnsKDX6522.922.292.87+22.6
Great Basin GoGBG130892.041.651.96+20.2
Goldstone ResGRC40460.880.670.83+20.2
Niocan IncNIO731.080.881.06+17.7
Mawson ResMAW26531.941.561.90+17.2
South Am SilvrSAC9152.081.681.96+16.6
Diamond FieldsDFI4020.320.240.28+16.6
Orezone GoldORE27214.253.113.19-24.9
Crystallex IntKRY35000.110.080.09-18.1
Velocity MinlsVLC330.150.150.15-16.6
Tiger ResTGS1570.470.410.41-16.3
Spur VenturesSVU4680.440.370.38-15.5
First UraniumFIU9090.700.600.60-14.2
Champion MinlsCHM14661.651.351.39-14.2
Western LithiuWLC9340.690.600.61-14.0
Western AreasWSA165.755.575.75-13.5
PlatminPPN2400.720.590.61-12.8
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
First QuantumFM2106815127.40+8.39
AgriumAGU337482582.25+4.24
Allied NevadaANV393965032.16+3.05
Teck ATCKA1037347.46+2.86
Labdr I-Ore RoLIF_U25330469.30+2.74
Agnico-EagleAEM469691563.07+2.45
Potash Cp SaskPOT819955551.91+2.36
Teck BTCKB2199731645.95+2.29
Pan Am SilverPAA130805929.22+1.87
Silver WheatonSLW1060028731.34+1.86
Orezone GoldORE27212343.19-1.06
Western AreasWSA158005.75-0.90
US Gold Can AcUXE101215.67-0.72
Queenston MngQMI4494826.74-0.67
WitwatersrandWGR165025.10-0.60
North Am En PaNOA1316636.89-0.55
Sprott Ph SilvPHSU14686115.47-0.53
Contintl GoldCNL7523737.55-0.44
IAMGold CorpIMG1272024217.73-0.40
Central FundCEFA61162220.25-0.38
TSX VENTURE EXCHANGE
Vancouver – The S&P TSX Venture Exchange Index managed a slight gain during the trading week, climbing 7.39 points to 1,905.33 after two days of gains outweighed three days of losses. Volume was in-line with recent weeks at a subdued average of 93.3 million shares traded daily.
Fluctuating rare earth stocks once again led value gains during the period. Quest Rare Minerals topped the list, up $1.39 after five straight days of gains to end at $6.45 on 2.8 million shares traded. The company announced plans to spend another $150,000 on exploration at its Strange Lake joint venture in Labrador with Search Minerals, and also released its quarterly management discussion.
Tasman Metals was second in value gains with a $1.01 increase to end at $4.98 on no news, though it recently announced the completion of 4,700 metres of drilling at its Norra Karr heavy rare earth project in Sweden. The company reports that the drilling has significantly expanded the mineralization thickness, extending the depth of intrusion by roughly 100 metres below the lower limit of the current resource.
Geomega Resources jumped 97¢ to $3 after releasing results from two holes at its Montviel property in Abitibi, Que. One hole returned 544.6 metres grading 1.41% total rare earth oxides (TREO), and the other hit 127.6 metres carrying 1.51% TREO. The company reports that the drilling extends the mineralized zone 200 metres farther west along strike and 175 metres south, for a defined area of 500 metres along strike and 400 metres wide.
Allana Potash was the second most traded stock on the Venture, clocking in 20.4 million shares traded after releasing an updated resource estimate for its Ethiopian potash project. The Danakhil project now hosts 673 million measured and indicated tonnes grading 18.65% potassium chloride (KCl) and an inferred resource of 596
million tonnes averaging 19.96% KCl, while the resource only covers 40% of the company’s licensed land area in the basin. The company’s stock price dropped 34¢ to $1.74 in the period.
Little-traded shell company Drexel Resources popped 510% on a single day after announcing a $2.4-million financing. The company’s share price climbed 51¢ to 61¢ with 106,000 shares traded on news of the financing, which included the announcement that former Fronteer Gold president Mark O’Dea was buying a 32.8% stake in the company. Drexel’s qualifying transaction in Septemb
er 2010, and current sole property, was for a 60% interest in the Titan copper-gold-molybdenum property in British Columbia from Eagle Plains Resources.
Uranium North Resources climbed 7¢ to 17¢ after announcing drilling had started on its 20-hole exploration program at its Amer Lake uranium project in Nunavut.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Sandstorm ResSSL211401.221.081.13-0.03
Allana ResAAA204432.271.581.74-0.34
Macusani YelloYEL108920.230.160.23+0.07
Orbite Expl AORTA94013.683.103.49+0.25
Seafield ResSFF82170.340.240.31+0.07
Axmin IncAXM72840.090.080.080.00
IBC Adv AlloysIB69440.190.160.180.00
Copper Fox MtlCUU54922.301.832.20+0.20
KWG ResKWG52750.090.090.090.00
Silver Quest RSQI39821.130.941.04+0.11
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Hinterland MtlHMI1420.340.140.30+130.7
Orestone MngORS9300.070.050.07+75.0
Uranium NorthUNR32270.170.100.17+54.5
Eastfield ResETF1950.150.100.15+50.0
Baroyeca Go&SiBGS4330.150.100.15+50.0
Geomega ResGMA5863.652.083.00+47.7
Fairmont ResFMR320.250.220.25+47.0
Macusani YelloYEL108920.230.160.23+43.7
AndeanGoldAAU1330.150.120.14+40.0
Abzu GoldABS2620.700.510.70+37.2
Open GoldOPG1050.100.080.08-33.3
Halo ResHLO7400.260.190.19-29.6
Aldridge MinlsAGM1671.170.830.83-29.0
Chilean GoldCHN1110.340.200.22-26.6
Adriana ResADI14051.250.810.92-26.4
Panthera ExplPNX450.180.160.16-23.8
West High YldWHY240.340.300.30-23.0
Midasco CapMGC510.110.090.10-23.0
Canaf GroupCAF290.090.070.07-22.2
Claim Post ResCPS1020.090.070.07-22.2
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Quest Rare MnlQRM20089196.45+1.39
Tasman MetalsTSM10161784.98+1.01
Geomega ResGMA5859553.00+0.97
Clifton StarCFO11757982.60+0.47
New Millen CapNML14415072.66+0.38
Olivut ResOLV2281411.45+0.37
Gold CanyonGCU5161793.00+0.34
Southern ArcSA12265751.98+0.31
Trelawney M&ExTRR18818144.51+0.31
Kaminak GoldKAM12968873.82+0.31
Bear Creek MngBCM9986245.16-0.82
Mirasol ResMRZ4431634.23-0.53
Batero GoldBAT5125192.50-0.35
Aldridge MinlsAGM1672540.83-0.34
Allana ResAAA204427201.74-0.34
Adriana ResADI14051150.92-0.33
Ninety Nine CpWDG5014281.81-0.30
Hana MngHMG4754651.66-0.29
Chesapeake GldCKG3710111.50-0.24
Archon MineralACS120001.50-0.20
U.S. markets
The Dow Jones Industrial Average and the S&P 500 Index fell for their seventh week in the last eight as mounting anxiety about Euro-zone debt continued to eat away at investor confidence. The Dow Jones Industrial Average fell 69.78 points, or 0.58%, to finish at 11,934.58 during the June 20-24 trading week, while the S&P 500 Index lost 3.05 points, or 0.24%, to 1,268.45. The Philadelphia Gold and Silver Index inched up 1.77 points, or 0.93%, to close at 191.89.
Cliffs Natural Resources, which produces metallurgical coal products, iron ore pellets, and lump and fine iron ore, topped the list of value gains with an advance of US$5.11 to US$86.62, despite receiving troubling news at the end of the trading week. On June 24 the company announced that federal regulators had denied its remediation plan to address carbon monoxide issues at its Pinnacle mine in West Virginia. Cliffs says it is now evaluating its options. The company had planned to produce over 1 million tonnes of low-volatile metallurgical coal from the mine in the last half of 2011.
Shares of Patriot Coal and Peabody Energy, meanwhile, got a lift from a positive report on the outlook for the coal sector by Goldman Sachs. Peabody Energy climbed US$3.17 to US$57.04, while Patriot Coal rose US$2.27 to US$21.25. Among its arguments, Goldman noted that high oil prices make coal a cheaper alternative for power generation and other uses, and pointed out that as countries like Germany turn away from nuclear power, coal could benefit.
Teck Resources shares were up US$1.88 to US$46.49 per share. On June 19 Teck updated its coal guidance for the second quarter, noting that due to the February earthquake and tsunami in Japan, some of its coal customers had deferred shipments because of reduced steel production requirements. Teck said it now expects coal sales in the second quarter “at the low end of its previously announced guidance range of 5.5 to
6 million tonnes.”
AngloGold Ashanti‘s stock continued to suffer from ongoing silicosis-related compensation issues. Shares of Africa’s biggest gold miner were down US$1.98 to US$40.12.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA9878315.6014.5615.23+0.51
Freeport McMo*FCX8601949.9047.1148.43+0.50
Mosaic*MOS5072064.9059.3363.60+4.28
Silver Wheatn*SLW4320533.6130.0031.75+1.56
Alpha Nat Res*ANR4264945.1440.6542.71+0.59
Hecla Mining*HL399027.656.947.29+0.30
Potash C Sask*POT3694754.1251.0152.54+1.57
Barrick Gold*ABX3416645.6542.9243.04-0.14
Kinross Gold*KGC3386615.8514.8215.14+0.08
Goldcorp*GG3326450.3846.2746.84+0.39
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
China Shen Zh*SHZ4533.952.373.60+50.6
US Antimony*UAMY12703.892.463.70+48.0
Starfield Res*SRFDF9100.060.040.06+20.0
El Capitan Pr*ECPN16930.950.780.92+17.9
Tara Gold*TRGD2020.470.350.45+15.3
Minera Andes*MNEAF8522.662.132.42+14.6
Li3 Energy*LIEG16840.250.200.24+14.2
Rubicon Mnls*RBY49174.743.934.54+14.0
Rare Elemt Re*REE775611.089.7210.67+13.0
Tri-Valley*TIV15850.620.530.61+12.9
Argentex Mng*AGXM5161.010.640.79-17.7
Gold Reserve*GRZ12513.052.242.52-15.7
Am Engy Field*AEFI2780.220.160.19-13.6
Geovic Mng*GVCM2870.370.310.31-11.4
Infrastrc Mat*IFAM2320.100.060.09-10.0
Paramount Gld*PZG241083.873.363.50-8.3
Golden Phoen*GPXM6930.130.120.12-7.6
America West*AWSR1331.401.151.25-7.4
North Am En P*NOA5727.746.986.98-6.9
Canarc Res*CRCUF2180.180.140.14-6.6
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Cliffs Nat Rs*CLF1791486686.62+5.11
Alliance Rs P*ARLP39696074.65+4.87
Mosaic*MOS5071993163.60+4.28
Agrium*AGU319654183.58+3.84
Allied Nevada*ANV548329633.30+3.72
Randgold Res*GOLD303624178.66+3.53
Peabody Enrgy*BTU3089724457.04+3.17
Patriot Coal*PCX702698821.25+2.27
Soc Quim&M Ch*SQM254757261.57+2.08
Teck B*TCK1951529946.49+1.88
AngloGold Ash*AU861102140.12-1.98
Compass Mnls*CMP51712183.25-1.60
Mechel*MTL269012624.96-0.67
Central Fund*CEF754490720.46-0.59
North Am En P*NOA5720756.98-0.52
Gold Reserve*GRZ12509982.52-0.47
Paramount Gld*PZG241082523.50-0.32
Gold Fields*GFI2414312413.92-0.31
Exeter Res*XRA2926434.20-0.18
Mountain Prov*MDM350975.51-0.18
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