Market news

Toronto Stock Exchange

Despite a key agreement being brokered by the heads of all members of the European Union except Great Britain, the S&P/TSX Composite Index finished the Dec. 5-9 period lower than where it began, off 103 points to 12,034.15 points.

While pundits applauded the last-minute agreement in Europe, markets are taking a wait-and-see approach. The treaty intended to cure some of the region’s ailments won’t be tabled until March.

The S&P/TSX Global Gold Index followed the overall market. It was down 4 points to 403.05 points, and the price of gold fell US$35 per oz. to US$1,716.80 per oz.

The S&P/TSX Capped Diversified Metals & Mining Index, however, bucked the trend and went up 41 points to 1,149.50 points in a period that saw nickel, tin and lead prices inch higher, while copper, aluminum and zinc prices came off slightly.

Rumours of a takeover propelled Oromin Explorations‘ stock price 43% higher to $1.19. The company with gold exploration assets in Senegal and an oil prospect in Argentina confirmed that it is in discussions, but revealed few details beyond that.

European Goldfields

also benefited from acquisition rumours, with the company’s shares up 25% to $12.86 for the period. The market activity centres on the alleged interest of two suitors for the company: Eldorado Gold and Centerra Gold. European Goldfields has projects in Greece, Romania and Turkey, and while the company admits that preliminary talks have been held, it says no formal offers have been made.

An agreement with BHP Billiton helped boost Polar Star Mining shares over the period as well. The company’s share price grew 27% to 38¢ after it announced an option agreement with the mining major on 172 sq. km of exploration ground south of Polar Star’s Montezuma property in Argentina. The deal calls for BHP to spend US$1 million on reconnaissance exploration, after which it will choose five separate blocks that will see US$3.5 million in exploration expenditure on each selected block for a 51% interest.

Environmental authorities gave the thumbs-up to Canadian Zinc to develop its Prairie Creek zinc mine in the Northwest Territories and the market followed suit, bringing the company’s shares up 27% to 76¢ for the period. Canadian Zinc plans on upgrading existing infrastructure on the site that was built in the eighties. The project has drawn much attention from environmentalists because it sits in the Mackenzie Mountains near the Nahanni National Park. An environmental impact review board ruled, however, that a mine wouldn’t have a significant impact on the environment.

TSX most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Eastern Platin ELR 25546 0.61 0.53 0.56 – 0.03

Lundin Mng LUN 23788 4.37 3.98 4.14 + 0.11

Platmin PPN 21846 0.19 0.09 0.14 – 0.03

Kinross Gold K 19535 14.19 13.43 13.61 – 0.37

Allana Potash AAA 18711 1.10 0.94 0.97 – 0.11

Grande Cache C GCE 15998 9.88 9.39 9.84 + 0.01

Teck B TCKB 15391 39.55 36.98 37.92 + 0.05

Cline Mng CMK 13767 1.74 1.46 1.58 – 0.08

Potash Cp Sask POT 13754 44.48 40.60 41.57 – 1.52

Orbite Alumnae ORT 13574 3.06 2.54 2.70 – 0.19

TSX Venture Exchange

The S&P/TSX Venture Composite Index finished off the Dec. 5-9 period at 1,547.31 points, down 9.57 points after dropping in four days and rallying on the fifth. Volume was up slightly at an average of 93.7 million shares traded daily.

Rye Patch Gold‘s brazen move to snap up claims that Coeur d’Alene Mines accidentally let lapse had the junior in the spotlight. Rye Patch shares climbed to as high as 84¢ before ending the trading period up 31¢ at 70¢ as the highest percentage gainer of the trading period, while the 21.2 million Rye Patch shares that changed hands made it the most active stock on the index. Rye Patch is claiming that it staked 30.3 sq. km of land around Coeur’s Rochester silver project in Nevada after Coeur failed to pay the annual claim maintenance fee. The companies have since launched lawsuits against each other.

As a snapshot of the current state of global exploration, drilling contractor Energold Drilling reported that quarterly revenue jumped 188% to $47 million, while drilling for 2011’s first nine months was up 85% to 451,400 metres. The results helped propel the company’s share price up 72¢ to $4.89 as the period’s highest value gainer, while the week before the company’s stock price climbed 44¢ to $4.17. Energold noted that the majority of its drilling continues to be on brownfield mine sites, but an increasing portion is coming from frontier-oriented programs in West Africa and South America.

Luna Gold saw heightened activity after announcing a resource update on its Aurizona gold mine in northeast Brazil. The company ended the period up 4¢ at 65¢ with 6.9 million shares changing hands. The updated resource stands at 78 million measured and indicated tonnes grading 1.26 grams gold for 3.17 million oz. gold, plus 15.2 million inferred tonnes at 1.47 grams gold for 720,000 oz. gold, representing a 250% increase in the measured and indicated categories and a 79% increase in inferred resources. The company also reported drill results, including 23 metres grading 4.04 grams gold and 71 metres averaging 1.69 grams gold.

Columbus Gold sparked some interest after announcing it had restructured terms on its Paul Isnard gold project in French Guiana and was starting a 15,000-metre drill program there, with the company’s share price climbing 16¢ to 82¢. The company reports that a new royalty agreement between Columbus and Iamgold‘s local subsidiary has several improved provisions, while an amended earn-in agreement with Auplata allows Columbus to secure 100% of the project by simply paying $1.5 million. The company also recently sold its Nevada Summit gold project to Agnico-Eagle Mines for US$8.5 million.

TSX-V most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Rye Patch Gold RPM 21204 0.84 0.41 0.70 + 0.31

Alexander Nubi AAN 10353 0.06 0.04 0.06 0.00

New Guinea Gld NGG 10213 0.06 0.05 0.05 – 0.01

Axmin Inc AXM 8458 0.05 0.05 0.05 0.00

Hana Mng HMG 7819 1.66 1.35 1.63 + 0.19

Royal Coal RDA 7020 0.05 0.03 0.04 0.00

Luna Gold LGC 6871 0.74 0.61 0.65 + 0.04

NWM Mng NWM 5955 0.08 0.08 0.08 0.00

Slam Exploratn SXL 5415 0.09 0.07 0.07 0.00

Alto Vent ATV 5232 0.03 0.02 0.02 0.00

TSX-V greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Rye Patch Gold RPM 21204 0.84 0.41 0.70 + 79.4

Knick Expl KNX 179 0.16 0.08 0.16 + 77.7

Sable Res SAE 176 0.14 0.08 0.14 + 75.0

Mountain Boy M MTB 1951 0.11 0.06 0.11 + 57.1

Viking Gold VGC 1108 0.22 0.14 0.20 + 53.8

Dot Res DOT 10 0.03 0.03 0.03 + 50.0

Solid Gold Res SLD 466 0.07 0.05 0.06 + 50.0

Canadn Mi
ning CNG 1301 0.04 0.03 0.03 + 50.0

Roscan Minls ROS 37 0.10 0.07 0.10 + 42.8

Lincoln Mng LMG 111 0.10 0.08 0.10 + 42.8

Mazarin MAZH 15 0.01 0.01 0.01 – 50.0

Stratabd Mnr SB 114 0.09 0.05 0.05 – 44.4

Bearclaw Cap BRL 200 0.06 0.05 0.05 – 44.4

Zonte Mtls ZON 163 0.28 0.16 0.18 – 40.0

Kingsman Res KSM 1621 0.06 0.03 0.03 – 40.0

Mukuba Res MKU 110 0.15 0.10 0.10 – 37.5

Amerix Pr Mtls APM 1108 0.09 0.07 0.07 – 36.3

Radius Gold RDU 617 0.41 0.26 0.26 – 35.0

Hudson River M HRM 134 0.06 0.05 0.06 – 33.3

Cassius Vent CZ 14 0.10 0.10 0.10 – 33.3

TSX-V greatest value change

WEEK

VOLUME CLOSE CHANGE

Energold Drill EGD 2261179 4.89 + 0.72

Callinan Royal CAA 338184 2.89 + 0.34

Rye Patch Gold RPM 21204204 0.70 + 0.31

Verde Potash NPK 158054 7.49 + 0.29

Lumina Copper LCC 618247 11.45 + 0.25

Astur Gold AST 86974 1.74 + 0.21

Kootenay Gold KTN 407000 1.20 + 0.20

Hana Mng HMG 7818531 1.63 + 0.19

Columbus Gold CGT 565180 0.82 + 0.16

Lovitt Res LRC 26000 0.55 + 0.16

Trelawney M&Ex TRR 2694966 3.07 – 0.43

Atac Res ATC 1173589 2.86 – 0.42

Maudore Minls MAO 56385 5.25 – 0.42

Tasman Metals TSM 296517 2.11 – 0.39

Chesapeake Gld CKG 43460 12.25 – 0.33

Cap-Ex Vent CEV 3939057 0.93 – 0.25

Kaminak Gold KAM 1435405 2.35 – 0.25

Pac Booker Min BKM 13073 8.25 – 0.24

Batero Gold BAT 243508 2.12 – 0.23

Regulus Res REG 927089 0.51 – 0.21

U.S. Markets

U.S. equities ended the week marginally higher as leaders in the European Union – except Great Britain – agreed to draft a new treaty to form a closer fiscal union in the eurozone. But skepticism continued regarding Europe controlling its debt crisis, and Moody’s rating agency downgrades of France’s three largest banks in debt and worrisome manufacturing data from China drove many investors out of the markets.

The Dow Jones Industrial Average climbed 1.37% higher to 12,184.26 points, while the S&P 500 Index edged up 0.88% to 1,255.19 points. The Nasdaq Composite Index gained 0.75% to finish at 2,646.58 points, while the Philadelphia Gold and Silver Index headed in the opposite direction, down 0.81% to close the period at 200.64 points.

West Africa-focused miner Randgold Resources topped the list of gains advancing US$4.25 to close at US$108.51 per share on no news, despite announcing on Nov. 28 that setbacks at its Tongon mine in northern Côte d’Ivoire would impact production in the fourth quarter. Wet weather, work stoppages, negotiations with a newly established labour union, a shift from diesel-generated power to the national grid and a mill breakdown were among the reasons the company anticipated this year’s production at Tongon would decrease by between 690,000 oz. and 700,000 oz. gold – down from its previous guidance of between 740,000 oz. and 760,000 oz. gold.

Shares of Cliffs Natural Resources gained US$1.01 to close at US$69.35 per share despite news on Dec. 5 that the company expects full-year 2012 production volume at its Empire iron ore mine in Michigan will fall to 2.7 million tons from this year’s full-year expected production volume of 4.6 million tons. The decrease results from blast-furnace maintenance scheduled at one of the company’s North American customer facilities. The company reassured investors that the expected production decline would not affect 2012 production volumes at its other four iron mines in the U.S.

U.S. most active issues

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Alcoa* AA 126790 10.11 9.42 9.64 – 0.27

Freeport McMo* FCX 76331 41.22 38.07 39.73 + 0.43

Potash C Sask* POT 47817 44.07 39.60 40.76 – 1.53

Hecla Mining* HL 46156 6.61 5.88 6.45 + 0.48

Alpha Nat Res* ANR 43104 25.48 22.50 23.45 – 0.66

Mosaic* MOS 31878 53.99 49.25 50.51 – 0.70

Barrick Gold* ABX 29942 51.81 49.11 49.81 – 1.21

Kinross Gold* KGC 29242 14.00 13.11 13.36 – 0.39

Arch Coal* ACI 29229 16.88 14.89 15.54 – 0.66

Newmont Mng* NEM 26340 67.97 65.04 66.94 + 0.26

U.S. greatest percentage change

VOLUME WEEK

(000s) HIGH LOW CLOSE CHANGE

Grandview Gld* GVGDF 62 0.09 0.01 0.09 + 200.0

Tombstone Exp* TMBXF 182 0.05 0.03 0.04 + 100.0

Douglas Lk Ml* DLKM 567 0.20 0.13 0.19 + 58.3

Oromin Expl* OLEPF 352 1.19 0.76 1.18 + 45.6

Crosshair Eny* CXZ 180 0.43 0.35 0.43 + 16.2

Dejour Enterp* DEJ 567 0.39 0.29 0.38 + 15.1

Caledonia Mng* CALVF 692 0.12 0.10 0.11 + 10.0

Tanz Roy Exp* TRX 2541 3.17 2.76 3.13 + 9.8

Stillwater Mg* SWC 16513 12.11 10.82 12.01 + 8.9

General Moly* GMO 3119 3.55 3.27 3.52 + 8.6

Radius Gold* RDUFF 55 0.40 0.25 0.28 – 22.2

El Capitan Pr* ECPN 2271 0.44 0.31 0.35 – 20.4

Geovic Mng* GVCM 251 0.22 0.17 0.19 – 17.3

Legend Intl H* LGDI 2566 0.19 0.12 0.15 – 16.6

Silver Dragon* SDRG 775 0.07 0.05 0.05 – 16.6

Linux Gold* LNXGF 241 0.05 0.03 0.05 – 16.6

Anooraq Res* ANO 157 0.52 0.44 0.44 – 15.3

Samex Mng* SMXMF 146 0.78 0.63 0.64 – 14.6

Li3 Energy* LIEG 539 0.09 0.07 0.07 – 12.5

America West* AWSR 53 0.50 0.34 0.35 – 12.5

U.S. greatest value change

WEEK

VOLUME CLOSE CHANGE

Randgold Res* GOLD 2178649 108.51 + 4.25

Ivanhoe Mines* IVN 21613224 21.78 + 1.60

Buenaventura* BVN 4541873 38.16 + 1.16

Cliffs Nat Rs* CLF 19044744 69.35 + 1.01

Stillwater Mg* SWC 16512859 12.01 + 0.99

Silver Std Re* SSRI 6981132 15.15 + 0.99

Seabridge Gld* SA 1534332 22.38 + 0.96

Richmont Mine* RIC 1623226 12.25 + 0.80

Coeur d Alene* CDE 6469773 29.25 + 0.65

HudBay Mnls* HBM 58697 10.49 + 0.59

Walter Energy* WLT 1272053 67.14 – 4.54

Molycorp* MCP 15414148 29.22 – 3.29

Alliance Rs P* ARLP 194202 72.23 – 1.92

Potash C Sask* POT 47816892 40.76 – 1.53

Peabody Enrgy* BTU 25270582 36.72 – 1.50

Compass Mnls* CMP 205140 73.65 – 1.41

AngloGold Ash* AU 6684024 45.63 – 1.39

Barrick Gold* ABX 29942180 49.81 – 1.21

Intrepid Pots* IPI 971731 21.80 – 1.17

Soc Quim&M Ch* SQM 2275990 54.52 – 1.15