Toronto Stock Exchange
The S&P/TSX Composite Index closed the period at 12,577.28 points, up 110.78 points, its seventh consecutive weekly advance. Bolstering Canada’s benchmark stock index was healthy economic figures from the U.S., which offset unimpressive Canadian jobs data and concerns over Greece’s unresolved debt deal.
The official unemployment rate in the U.S. dropped from 8.5% to 8.3%, whereas the jobless rate in Canada rose to 7.5%. The U.S. reported strong growth in its service sector.
Diversified miners moved up 18.05 points to 1,237.21, while the S&P/TSX Global Gold Index and the gold price finished the period lower, sliding 8.88 points to 383.77 and US$11.40 per oz. to US$1,725.90.
Following an unsolicited bid by Perth-based Panoramic Resources, Magma Metals became the week’s biggest percentage gainer, surging 88% to 15¢. Panoramic is offering to acquire all of Magma shares it currently doesn’t own in a deal that would provide two Panoramic shares for every 17 Magma shares. This implies a value of 14.9¢ per share based on Magma’s Feb. 2 closing price.
Magma’s directors say the conditional offer appears “highly opportunistic” and urge shareholders not to respond to the bid.
Starcore International Mines gained 32% after reporting on Feb.2 it has repaid its US$3.2-million debt one year ahead of schedule. To help pay that loan, which was used to acquire the San Martin gold-silver mine in Queretaro, Mexico, the company closed a $2.25-million non-brokered private placement on Jan. 31. The placement consisted of 9 million units priced at 25¢ apiece. Each unit contains a share and a half share warrant. Though Starcore has paid its debt, it still has forward contracts under the loan agreement for the sale of 14,513 oz. gold at a price of US$731 per oz. until Jan. 31, 2013. Starcore’s sole asset, the past-producing San Martin mine, has reserves of 586,318 tonnes grading 2.29 grams gold and 39 grams silver per tonne.
New Millennium Iron jumped 29.2% to close at $2.65 a share after reporting that its joint-venture partner Tata Steel Minerals Canada has signed a life-of-mine confidential rail transportation contract and locomotive rental agreement with Quebec North Shore and Labrador Railway Co. These agreements will allow Tata to transport iron ore products produced from the joint Direct Shipping Ore project in Labrador to Sept-Îles, Que. This provides a significant step in the logistics process of shipping iron ore products to Tata Steel Europe, and gives cost and transport certainty, said New Millennium’s president and CEO Dean Journeaux. Tata owns 27% of the company.
Metallurgical coal producer Walter Energy topped the week’s value gains, advancing $4.20 per share to $75.60 after announcing a regular quarterly dividend of 12.5¢ a share payable on March 12 to shareholders on record as of Feb. 20, 2012.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Kinross GoldK3083411.6210.9811.14-0.53
B2GoldBTO200424.093.683.86+0.06
Grande Cache CGCE168049.649.319.36-0.22
Geologix ExGIX162730.360.280.35+0.05
Uranium OneUUU159712.802.542.65-0.15
Mercator MnlsML158881.901.711.86-0.01
Yamana GoldYRI1459617.9216.9917.05-0.34
Barrick GoldABX1411950.2748.3648.59-0.87
GoldcorpG1397849.6947.1247.25-1.97
Eldorado GoldELD1381015.6014.6014.64-0.43
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Magma MetalsMMW30340.160.080.15+87.5
IverniaIVW54610.120.070.12+50.0
Redzone ResREZ2270.450.320.45+45.1
Western LithiuWLC16890.470.340.46+43.7
Rockgate CapRGT67551.350.851.27+41.1
Starcore Int VSAM32050.330.250.33+32.0
New Milln IronNML40212.721.962.65+29.2
Lucara DiamLUC36971.100.861.08+27.0
Gold-Ore ResGOZ120380.990.710.95+26.6
South Am SilvrSAC11121.971.401.82+26.3
Northland ResNAU9352.001.381.41-27.6
Grandview GldGVX1930.040.030.03-25.0
Gryphon GoldGGN71040.250.170.19-20.8
SemafoSMF109758.006.606.72-16.2
NovaGold ResNG526210.708.979.10-15.1
Khan ResKRI2420.200.170.17-15.0
North Am En PaNOA1116.555.505.58-14.6
Homeland EnrgyHEG8770.060.050.06-14.2
White Tigr GldWTG15400.990.770.87-13.0
Pac NW CapPFN2190.170.140.14-12.5
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Walter EnergyWLT2781175.60+4.20
Seabridge GoldSEA13077822.70+2.03
AgriumAGU312274882.84+1.80
Rare Elemnt RsRES17788527.72+1.59
Russell MetalsRUS46641825.65+0.93
Imperial MetalIII140605316.06+0.86
Kirkland Lk GdKGI126003718.60+0.81
Pretium ResPVG207409316.76+0.75
Major DrillingMDI122010217.40+0.72
Pan Am SilverPAA360842023.82+0.72
Agnico-EagleAEM480003736.10-3.14
Royal GoldRGL6947272.81-2.60
GoldcorpG1397781047.25-1.97
Allied NevadaANV133768535.37-1.90
NovaGold ResNG52621149.10-1.62
Franco-NevadaFNV433658443.75-1.32
SemafoSMF109745056.72-1.30
Tahoe ResTHO68067620.40-1.25
Karnalyte ResKRN2597969.53-1.17
Centerra GoldCG151041718.67-1.15
TSX Venture Exchange
The S&P TSX Venture Composite Index continued its steady January climb into February, finishing the period up 36.2 points to 1,665.11. The gains put the index back to a level not seen since early November, while the fairly steady climb since mid-December is the longest period of stable gains in a year. Volume continues to rise, adding roughly 3 million over the prior week to bring the average daily trading volume to 135 million shares.
Atac Resources saw the biggest value gains of the week, climbing as much as $1.45 before ending up 93¢ at $3.47 with 4.3 million shares traded. With no news out, the company was forced to issue a press release clarifying that there were no material changes that would explain the gains. The company released the last of its 2011 drill results from the Rackla gold project in mid-December, which included 44.2 metres grading 4.42 grams gold per tonne. The company plans to drill roughly 30,000 metres at the project in 2012, but will not be able to drill the project until mid-May. Atac’s stock price hit a high of $10.34 in July 2011 before plummeting to a low of $2.22 in mid-December.
Papuan Precious Metals was up significantly on no news, rising 11¢ or 85% to 25¢ on 767,000 shares traded. The company has not released news since November, when it reported copper float sample results from its Waria River target including 10.49% copper, 0.33 gram gold, and 10 gram silver per tonne. The company spiked to a brief high of 79¢ in August 2011 after announcing drill hole 7 from its Kuliuta project hit 189 metres of “porphyry-copper style mineralization with visible copper.” The company’s share price quickly fell back down after continual delays in releasing assay results from several holes, including hole 7, which have yet to be released. The company hit a 52-week low of 13¢ just before its rise last week.
Calibre Mining‘s shares continue to ride a wave of activity following the company’s drill results of Jan. 20, being the highest-traded issue on the index for the third week in a row. The activity has brought continued gains, up another 5¢ to end at 54¢ after hitting a high of 60¢ in the period. Results from the company’s Nicaraguan property, in which B2Gold is earning 51%, include 261.7 metres grading 0.78 gram gold and 0.3% copper from surface and 276.8 metres grading 0.5 gram gold and 0.22% copper from surface.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Calibre MngCXB397200.600.450.54+0.06
Iberian MnlsIZN184791.101.091.100.00
Encanto PotashEPO145550.310.250.31+0.05
Brookemnt CptBKT126340.160.100.14+0.02
Goldbrook VentGBK110240.380.360.380.00
Axmin IncAXM85420.090.060.08+0.01
Sandspring ResSSP71301.401.141.29-0.08
Canaco ResCAN63881.851.441.67+0.17
Great WesternGWG59940.680.510.68+0.17
Majescor ResMJX59070.300.220.26+0.03
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Noble Metal GrNMG3350.020.010.02+100.0
Papuan Prec MtPAU7670.260.130.25+92.3
Westar ResWER4730.510.290.48+71.4
Moss Lake GldMOK820.300.200.30+66.6
Altiplano MnlsAPN350.180.140.18+63.6
Cariboo RoseCRB1400.130.080.13+62.5
Blind Crk ResBCK38130.260.100.19+58.3
Lovitt ResLRC440.600.400.57+58.3
New Dimen ResNDR2670.110.060.11+57.1
Finlay MinrlsFYL790.080.060.06+50.0
Lakewood MngLKW120.010.010.01-50.0
Fort St J NickFTJ4950.210.100.13-40.9
Santa Barb ResSBL150.250.190.19-32.1
Radisson MngRDS830.120.090.09-30.7
Invenio ResIVO1800.140.100.10-28.5
Falcon GoldFG160.140.100.10-28.5
Cogitore ResWOO1000.200.190.19-26.9
Stronghold MtlZ20370.280.190.20-25.9
Lorraine CopprLLC120.060.050.06-25.0
Northern LionNL850.120.120.12-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Atac ResATC34334023.47+0.93
Lumina CopperLCC19488214.59+0.46
Gold CanyonGCU28660812.75+0.45
Newstrike CapNES36095353.13+0.44
Prophecy PlatNKL4324843.68+0.43
Chesapeake GldCKG41021910.18+0.38
Kaminak GoldKAM30060502.59+0.38
Tasman MetalsTSM6016382.42+0.37
Quest Rare MnlQRM17279553.33+0.35
Hana MngHMG39680751.93+0.31
Verde PotashNPK11994756.96-1.62
Pac Booker MinBKM388188.26-0.74
Mirasol ResMRZ2558323.81-0.58
Probe MinesPRB12020712.28-0.40
Trelawney M&ExTRR14404243.33-0.38
Anfield NickelANF2703654.82-0.24
Elgin MngELG44281130.97-0.23
Afferro MngAFF167551.11-0.23
Giyani GoldWDG3398701.47-0.23
Abitibi RoyaltRZZ163951.45-0.20
US markets
The bulls continued to have their way in U.S. markets over the period as a strong jobs report combined with continued signs a strengthening U.S. economy to lift the Dow Jones Industrial Average to heights not seen since before the 2008 collapse. The Dow was up 203 points to finish at 12,862.25; the S&P 500 rose 28 points to 1,344.90; and the Nasdaq, thanks to a rejuvenated tech sector, was up 115 points to 2,905.66 points.
Some of the key indicators making investors optimistic were: improving manufacturing activity, the emergence of a bottom in the housing market and signs that consumer spending is finally picking up.
Anooraq Resources cut a deal with Anglo American Platinum and saw its share price climb 16% to 58¢ as a result. Anglo American Platinum is buying Anooraq’s Boikgantsho project and the eastern section of the Ga-Phasha project in the Bushveld Igneous Complex of South Africa for US$222 million. Anooraq plans to use the money to reduce its debt to Amplats. The move will cut its debt by 66% to $125 million from $375 million. Anooraq will still hold a 51% stake in the enlarged Bokoni Platinum mine with Amplats holding the rest.
Alpha Natural Resources says it will suspend operations at four of its mines in Kentucky and West Virginia. The company said weaker coal demand from the utilities it sells to led to the decision. And that’s not all: The company said it will idle two more mines in the Appalachians by early 2013 and it is shrinking output at its still-operating mines in an effort to bring total production down to 3.6 million tonnes per year. The market took the scaling-back as good news, sending the company’s shares up US$1.13 to finish at US$22.78 per share.
Newmont Mining said it is putting the development of its Hope Bay gold project near Cambridge Bay, Nunavut, on hold. It was only a month ago that the company announced it wanted to expand the project, but now it says all work is being suspended indefinitely while the project is under review. The company offered that it wasn’t satisfied with the “geological package” as it currently understands it. Newmont’s shares were off US50¢ to US$61.12 per share for the period.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA12954010.7910.1010.76+0.36
Freeport McMo*FCX8397746.9645.0846.48+0.35
Alpha Nat Res*ANR5948622.8920.0122.78+1.13
Arch Coal*ACI4128915.9414.0915.70+1.19
Kinross Gold*KGC3898711.6411.0111.20-0.46
Potash C Sask*POT3569348.0046.3046.93-0.52
Barrick Gold*ABX3356050.3948.2849.07-0.44
Peabody Enrgy*BTU3308238.4034.0037.99+1.85
Newmont Mng*NEM3236462.5060.3861.01-0.50
Vale*VALE3126526.8724.0426.61+1.89
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Rare Elemt Re*REE224948.025.917.79+27.5
El Capitan Pr*ECPN28240.480.360.47+27.0
Li3 Energy*LIEG8200.100.080.10+25.0
US Antimony*UAMY5393.452.673.27+18.9
Western Coppr*WRN5082.001.652.00+16.9
Cabot Corp*CBT415542.5735.4441.94+16.2
Anooraq Res*ANO10870.630.500.58+16.0
Miranda Gold*MRDDF2930.470.380.45+15.3
Augusta Res*AZC2493.643.003.50+15.1
Dejour Enterp*DEJ8000.500.420.49+13.9
Apolo Gold*APLL140.090.090.09-40.0
Fischer-W Gld*FWGO11460.030.020.02-33.3
Silver Dragon*SDRG27910.080.060.06-33.3
Lake Vict Mng*LVCA190.100.070.09-18.1
Gold Am Mng*SILA1220.060.050.05-16.6
North Am En P*NOA756.675.555.58-15.2
NovaGold Res*NG3091010.729.039.15-14.1
Santa Fe Gold*SFEG4361.181.031.06-8.6
Minco Gold*MGH2850.920.850.85-8.6
Loncor Res*LON351.651.401.40-8.5
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Atac ResATC34334023.47+0.93
Lumina CopperLCC19488214.59+0.46
Gold CanyonGCU28660812.75+0.45
Newstrike CapNES36095353.13+0.44
Prophecy PlatNKL4324843.68+0.43
Chesapeake GldCKG41021910.18+0.38
Kaminak GoldKAM30060502.59+0.38
Tasman MetalsTSM6016382.42+0.37
Quest Rare MnlQRM17279553.33+0.35
Hana MngHMG39680751.93+0.31
Verde PotashNPK11994756.96-1.62
Pac Booker MinBKM388188.26-0.74
Mirasol ResMRZ2558323.81-0.58
Probe MinesPRB12020712.28-0.40
Trelawney M&ExTRR14404243.33-0.38
Anfield NickelANF2703654.82-0.24
Elgin MngELG44281130.97-0.23
Afferro MngAFF167551.11-0.23
Giyani GoldWDG3398701.47-0.23
Abitibi RoyaltRZZ163951.45-0.20
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