Market news

Toronto Stock Exchange

A solid U.S. employment report had investors believing in a stronger U.S. economy and helped lift the S&P/TSX Composite Index out of its mid-week swoon. The index finished the March 5–9 period down just 4 points at 12,503 points.

Beyond the stellar jobs report — which said the American economy created 227,000 jobs in the last quarter — there was good news from Europe, with a key bond swap in Greece that paved the way for European finance ministers to approve a €130-billion bailout for the country. 

The price of gold did little other than hold value as the yellow metal fell US$1 to US$1,711.50 per oz., and gold miners fell in step — evidenced by the S&P/TSX Global Gold Index falling 10 points to finish at 359 points. 

The diversified miners were off slightly too as the Capped Metals & Mining Index dropped 51 points to 1,125 points, with prices for copper, aluminum, nickel, tin, lead and zinc all falling. 

Xinergy was one of the period’s big gainers as the coal miner’s shares gained 39% to reach $2.50 after releasing its financial results. The company said its revenues last year from coal sales jumped 53% on increased production to a record $166.3 million. The company, which operates coal mines in the central Appalachian Mountains, still lost $14.1 million for the year — but with $73 million in cash, the market didn’t put much stock in the loss. Xinergy attributed the loss to an increase in finance and related costs connected with the issuance of $200 million in secured notes.

Eco Oro also enjoyed a healthy interest in its shares as the company’s stock jumped 19% to $2.48. The gain followed a maiden resource estimate on a new deposit at its Angostura gold-silver deposit in northeastern Colombia. The newly defined Mongora deposit sits 3 km south of its multi-million ounce Angostura gold deposit. Mongora now has inferred resources of 3.1 million tonnes grading 2.86 grams gold and 4.62 grams of silver for 282,867 oz. gold and 456,938 oz. silver.

News of Molycorp’s acquisition of Neo Material Technologies for $1.3 billion helped spark a rally amongst rare-earth companies listed on the TSX. Rare Element Resources was up 15% to $6.10. Quest Rare Minerals and Avalon Rare Metals  saw their shares increase in the period by 14% and 4% respectively. After trading closed Molycorp stated that it agreed to buy rare-earths processor Neo Material for cash and stock. 

The deal will combine Molycorp’s rare earth open-pit mine in California with Neo Material’s advanced rare earth processing capabilities. Neo Material has patented the Magnequench range of metal powders that are used to make neodymium-iron-boron magnets and owns facilities in China, Thailand, Germany and North America that produce rare earth oxides, alloys and magnetic powders. 

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Lundin MngLUN238675.014.454.87-0.14

New GoldNGD2315710.8210.0210.58-0.18

Uranium OneUUU219503.222.853.13-0.01

Eldorado GoldELD2058114.7013.7114.13-0.50

Teck BTCKB1651738.5234.8236.53-1.99

Cline MngCMK162261.701.461.67-0.05

Denison MinesDML153301.841.511.52-0.32

Kinross GoldK1490111.0610.2011.00+0.22

Osisko MngOSK1419012.9711.8612.72+0.07

B2GoldBTO140194.163.714.12+0.03

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Polo ResPOL1520.070.050.06+50.0

XinergyXRG4552.511.662.50+38.8

INV MetalsINV940.230.200.23+35.2

Redhawk ResRDK26910.750.560.70+20.6

Eco Oro MnlsEOM3982.541.972.48+18.6

Rare Elemnt RsRES12596.135.016.10+15.3

Talison LithmTLH18743.873.103.67+14.6

Gryphon GoldGGN12440.170.160.17+13.3

MalagaMLG46500.200.160.18+12.5

Harte GoldHRT4750.270.220.27+12.5

MinemakersMAK190.300.250.25-28.5

Vaaldiam ResVAA890.130.090.09-25.0

Intrepid MnrlIAU33771.290.951.00-21.8

Denison MinesDML153301.841.511.52-17.3

Mediterrn ResMNR6660.190.150.15-16.6

Alexis MinlsAMC60110.070.050.05-16.6

Wildcat SilverWS11822.061.691.78-15.6

Polaris MinlsPLS400.570.480.49-15.5

Rockgate CapRGT18141.251.031.04-15.4

Mirabela NicklMNB21801.040.870.89-15.2

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Rare Elemnt RsRES12592806.10+0.81

XinergyXRG4552632.50+0.70

Tahoe ResTHO123000222.09+0.59

Russell MetalsRUS162569527.71+0.58

HudBay MinlsHBM517502612.17+0.50

Horizns G BearHGD16743589.13+0.48

Talison LithmTLH18739923.67+0.47

Allied NevadaANV89471433.99+0.43

Foraco IntlFAR1902325.00+0.40

Eco Oro MnlsEOM3984342.48+0.39

Inmet MiningIMN206652659.42-5.85

Royal GoldRGL1495466.00-2.99

Potash Cp SaskPOT1035167643.67-2.49

First QuantumFM1258541620.93-2.26

Teck BTCKB1651684636.53-1.99

Silver WheatonSLW876382835.21-1.94

AgriumAGU285045882.55-1.85

GoldcorpG1207821746.90-1.67

Barrick GoldABX1398600245.45-1.42

Walter EnergyWLT3080261.30-1.30

TSX Venture Exchange

A Greek debt deal and encouraging U.S. job numbers were not enough to pull the S&P/TSX Venture Composite Index out of the red in the March 5–9 period, as general fears of a slowing global economy weighed on the exchange. The index ended down 29.09 points at 1,649.81 points, with volume dropping in the latter half of the period to end with an average of 96.3 million shares traded daily.

Chesapeake Gold was the period’s highest value gainer, up $2.09 to $11.64, after the company outlined its exploration work in Mexico. The company has made a grassroots discovery hosting a low-sulphidation epithermal system at its Jacky project, established two zones of mineralization along 6 km at its San Ramon target and hit mineralization similar to the flagship Metates project at its Nicole target, with all three projects in the Durango-Sinaloa region of the country. The share price climb came despite the company announcing a prefeasibility delay on Metates to the second quarter.

Majestic Gold has seen a burst of activity since releasing a gold production update on Feb. 24, with the company up 6¢, or 33%, to 24¢ over the past two weeks, and volume coming in at 16.5 million for the latest period and 8.1 million for the period before that. The company produced 8,671 oz. gold in 2011 from its Song Jiagou mine in China from 974,000 tonnes, at an effective head grade of 0.35 gram gold per tonne. Majestic notes that it is mining an area outside the scoping study as current gold prices and mine contracts make previously billed “waste” newly profitable.

Halted since last July, Clifton Star Resources began trading again on the last day of the period only to see its share price drop as much as $1.22, before closing down 87¢ at $2.03 on 1.5 million shares traded. The British Columbia Securities Commission lifted the company’s cease-trade order after updating the technical report on its Donchester property in Quebec. The update establishes 11 million inferred tonnes grading 3.06 grams gold at Donchester for 1.05 million contained oz. gold., while the Beattie property, on which Osisko Mining ended a joint v
enture in June, hosts 32 million inferred tonnes grading 1.67 grams gold for 1.7 million oz. gold.

Tasman Metals jumped 45¢ to $2.58 after hosting its annual general meeting on March 7. At the meeting Tasman founder Mark Saxon was reappointed as president and CEO, as were other members of the board. New to the board was James Hutton, president and CEO of Hutton Capital since 1986, and a specialist in structured financing for resource companies.

Ridgemont Iron Ore jumped 22¢, or 60%, to 59¢ on no news, with 132,000 shares traded. The company traded as high as $1.16 a year ago and hit a low of 30¢ in December, with 39 million shares outstanding. The company is earning up to a 75% interest in the Redford iron ore property on Vancouver Island from Logan Resources.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Majestic GoldMJS164790.260.200.24+0.05

Canaco ResCAN101541.361.081.12-0.32

Sandstorm GldSSL99311.801.491.78+0.01

Aurcana CorpAUN95451.040.891.04+0.04

Red Pine ExplRPX76510.050.020.04+0.02

Encanto PotashEPO64470.410.360.38-0.02

Goldbrook VentGBK57720.390.380.380.00

Amanta ResAMH55760.060.030.05+0.02

Encore Ren ResEZ53870.030.030.030.00

Pac Coal ResPAK53110.410.370.41+0.03

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Starfire MnrlsSFR1030.450.250.25+1150.0

Tearlach ResTEA160.340.310.31+933.3

Red Pine ExplRPX76510.050.020.04+100.0

BE ResBER7320.050.040.05+66.6

Amanta ResAMH55760.060.030.05+66.6

Ridgemont Ir ORDG1320.590.400.59+63.8

Iconic MnlsICM8140.140.100.13+62.5

Asian Minl ResASN140.080.050.08+60.0

Uragold Bay RsUBR4500.040.030.03+50.0

Dundee MinesDUN27240.030.010.03+50.0

Manicouagan MlMAM1450.130.090.09-43.7

Volcanic MtlsVOL4080.120.080.08-42.8

Infinito GoldIG1850.070.050.05-37.5

Rupert ResRUP210.210.130.13-35.0

Cooper MnlsCQ2950.170.100.12-33.3

RT MineralsRTM12140.050.030.04-33.3

Plato GoldPGC9510.020.010.02-33.3

Hansa ResHRL690.170.100.10-33.3

Clifton StarCFO14022.311.682.03-30.0

Eagle Star MnlEGE4320.180.120.12-29.4

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Chesapeake GldCKG25754511.64+2.08

Tasman MetalsTSM11989832.58+0.45

Tearlach ResTEA156000.31+0.28

Starfire MnrlsSFR1025370.25+0.23

Ridgemont Ir ORDG1320000.59+0.23

Palladon VentPLL1206201.99+0.21

Great Quest MeGQ1963873.30+0.21

Trelawney M&ExTRR42231802.50+0.14

Newstrike CapNES5527023.10+0.14

Anfield NickelANF2170134.20+0.13

Clifton StarCFO14023332.03-0.87

Atac ResATC10586133.00-0.40

Atacama Pac GdATM1173003.61-0.39

Verde PotashNPK2162026.84-0.37

Canaco ResCAN101540661.12-0.32

Giyani GoldWDG2120431.41-0.28

Energold DrillEGD9099805.37-0.21

Cayden ResCYD1036242.30-0.20

Probe MinesPRB2319511.70-0.19

McChip ResMCS101002.30-0.18

U.S. markets

It was a mixed trading week for markets in the U.S. The Dow Jones Industrial Average saw its worst one-day decrease so far this year, dropping 203 points following news that a debt-relief agreement for Greece could trigger hefty losses for some banks. However, the index made up for lost ground on signs that the U.S. economy is heading in the right direction based on an upbeat jobs report for the month of February. During the March 5–9 trading period the Dow lost 55.55 points, or 0.4%, to finish the week at 12,922.02 points.

The S&P 500 Index gained 1.24 points, or 0.1%, to 1,370.87, and the Nasdaq rose 0.4%, or 12.15 points, from the prior week, marking its fourth week of gains.

The spot price for gold dipped US$2.50 per oz. to end at US$1,713.50. In tandem with the yellow metal, the Philadelphia Gold and Silver Index slipped 7.37 points to finish at 186.85 points.

Molycorp was the week’s biggest percentage and value gainer, moving up 25.8%, or US$6.34 per share, to close at US$30.89. The boost came after the Colorado-based rare earth producer agreed to buy rare earth processor Neo Material Technologies for $1.3 billion. Under the transaction, approved by both boards, Neo Material shareholders will receive $11.30 a share comprising $8.05 in cash and 0.122 of a Molycorp share. This represents a 42% premium to Neo Material’s March 8 closing price.

Following that news, investors pushed up the share prices of other rare earth explorers. Quebec-focused Quest Rare Minerals rose 17.6% to US$3 per share. The company is exploring the Strange Lake and Misery Lake rare earth projects.

Rare Element Resources, which released a positive prefeasibility study for its Bear Lodge project in Wyoming, gained 14.5%, or US78¢, to finish at US$6.15 per share. It was the third value gainer for the week, following chemical and material company Cabot’s US$1.80-per-share gain on no news. Avalon Rare Metals, which is exploring the Nechalacho deposit at Thor Lake, N.W.T., moved up 8.2% to US$2.88 per share. The companies released no other news during the week.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA12747910.179.459.81-0.43

Freeport McMo*FCX12274441.2638.5338.78-3.25

Alpha Nat Res*ANR6976917.3215.5216.43-0.97

Arch Coal*ACI5255212.8911.5612.08-0.81

Kinross Gold*KGC4410211.2010.1911.06+0.14

Peabody Enrgy*BTU4357833.0329.8631.20-1.69

Barrick Gold*ABX3383247.2445.1445.81-1.61

Molycorp*MCP3149030.9224.3030.89+6.34

Hecla Mining*HL313875.034.654.95-0.01

Newmont Mng*NEM3134859.0355.8156.88-2.08

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Molycorp*MCP3149030.9224.3030.89+25.8

Golden Phoen*GPXM24680.050.050.05+25.0

Quest Rare Mn*QRM16513.012.293.00+17.6

Habanero Res*HBNRF130.070.070.07+16.6

Rare Elemt Re*REE93256.195.046.15+14.5

Legend Intl H*LGDI5750.130.110.12+9.0

Avalon Rare M*AVL48042.972.532.88+8.2

Miranda Gold*MRDDF1020.380.320.36+5.8

Uranerz Energ*URZ22062.642.302.62+4.8

Cabot Corp*CBT242042.8937.7442.03+4.4

America West*AWSR72030.730.240.25-64.2

Lake Vict Mng*LVCA300.110.070.08-27.2

Cornerstone C*CTNXF100.090.090.09-25.0

Li3 Energy*LIEG12830.140.100.10-23.0

Denison Mines*DNN5721.861.521.56-16.1

North Am En P*NOA2015.954.504.97-15.0

Radius Gold*RDUFF660.350.290.29-12.1

Crosshair Eny*CXZ1050.590.480.52-11.8

El Capitan Pr*ECPN14550.350.260.30-11.7

Lake Shore Gd*LSG12901.541.291.39-11.4

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Molycorp*MCP3149005030.89+6.34

Cabot Corp*CBT241968542.03+1.80

Rare Elemt Re*REE93247816.15+0.78

Compass Mnls*CMP30835372.13+0.78

Natural Rs Pt*NRP28031125.07+0.76

MDU Res*MDU375497322.07+0.55

HudBay Mnls*HBM7221412.29+0.46

Quest Rare Mn*QRM16512693.00+0.45

Allied Nevada*ANV45780334.41+0.32

Avalon Rare M*AVL48036852.88+0.22

Freeport McMo*FCX12274350538.78-3.25

Royal Gold*RGLD266462566.97-2.64

Potash C Sask*POT3025385344.02-2.64

Vale*VALE2460271923.07-2.61

Silver Wheatn*SLW2726475635.49-2.
10

Newmont Mng*NEM3134776756.88-2.08

Teck B*TCK2027222636.85-2.06

Agrium*AGU103481983.24-1.99

Mosaic*MOS2095735555.53-1.95

BHP Billi-BHP*BHP1373251574.14-1.87