TSX gains on global story

The TSX Composite Index partook in a global rally spurred on by the prospect of more growth in China as the Index gained 153 points for the June 4-8 period to finish at 11,500.63. China cut interest rates for the first time in four years which had investors speculating that more quantitative easing could be on the horizon for the U.S. as well.

But despite its gains the TSX Composite still lagged indices south of the border, largely because of the poor performance of gold and gold miners. The Global Gold Index was off 7 points to 321.17 points as the price for the yellow metal fell US$35 to US$1,591.40 per oz.

After weathering several dismal periods, the diversified miners bounced back somewhat as the Capped Metals & Mining Index rose 33 points to 877.49 points. The slight gain came despite the prices for copper, aluminum, nickel, lead and zinc all being weaker. The price for tin, however, was higher.

First Uranium was the period’s big winner as its share price climbed 124% to 19¢ as a rival bid for the company and its assets heated things up. The Toronto-based company said South African-based Kumvest has offered to buy 26% of its shares for about $22 million, or 37¢ per share in an effort to stop the sale of the company’s Ezulwini gold mine to Gold One International. Gold One has offered to pay $70 million for the asset, but Kumvest says it will only make its investment in First Uranium if shareholders reject the sale. Kumvest also wants to see a new slate of management and directors brought in to First Uranium.

Ivanhoe Australia was the period’s biggest loser by percentage points as its share price fell by 49% to finish at 60¢. The drop comes as uncertainty around the company’s relationship to its new majority owner, Rio Tinto grows and management and directors fall by the wayside. The latest news had Peter Reeve, the company’s chief executive, handing in his resignation. The turnover in the company’s upper echelon is connected to the company’s need to secure funding to develop its copper-gold and molybdenum projects in Australia, but now needing Rio Tinto’s approval on any such transactions. Rio owns 51% in Ivanhoe Mines, which in turn owns 59% of Ivanhoe Australia.

Stonegate Agricom saw its share price climb by 26% to 43¢ after releasing assay results from drill holes at its Upper Phosphate Zone (UPZ) at the Paris Hills Phosphate project in Idaho. The UPZ assay results returned grades ranging from 21% to 31.29% P2O5 and phosphate bed thicknesses of 2.5 to 5.4 metres, which the company says, demonstrates consistency of grade and thicknesses in the UPZ. The Company expects to release a compliant estimate on the zone in the second half of 2012.

And Golden Minerals received a lift a week after announcing it would sell its 1% net smelter royalty interest in the Platosa property to Excellon Resources for US$2.4 million. Golden Minerals is also looking to sell its land package in the Zacatecas mining district of Mexico. The company’s shares were up 40% to $5.46 for the period.