Market news

Toronto Stock Exchange

The S&P/TSX Composite Index was down 115.8 points during the trading week, as enthusiasm waned over the recently announced stimulus packages from central banks in the U.S., Europe and China. The index ended at 12,383.60.

During the period, the spot price of gold rose US$2.50 per oz. to close at US$1,773, while the S&P/TSX Global Gold Index edged up 6.8 points to 353.14. But the diversified miners didn’t gain any ground, and the S&P/TSX Capped Diversified Metals & Mining Index lost 81.3 points to 915.9. 

Ivanhoe Australia welcomed a healthy boost to its shares after publishing an updated resource estimate for the Kulthor gold-copper deposit in northwestern Queensland. The deposit contains 60% more metal in measured and indicated, with 7.4 million tonnes grading 1.6% copper and 1 gram gold per tonne. It has another 5.4 million tonnes at 1.3% copper and 0.9 gram gold in the inferred category. Kulthor’s upgraded resource could add one or two years of mill feed to the company’s nearby Osborne operation. Ivanhoe Australia gained 51% to end at 74¢.

The week was not so good for Eco Oro Minerals. The Vancouver-based miner led the period’s biggest losers, tumbling 41% to 28¢. The firm, which has its flagship Angostura gold-silver project in northeastern Colombia, announced on Sept. 20 that it would suspend exploration activities and lay off an unspecified number of workers to preserve cash, as it waits for details from the country’s government about the boundaries of the proposed regional park and its páramo ecosystem, in relation to its project.

The governmental authorities say they would extend the exploration phase for the company’s main mining title for Angostura, but forbade Eco Oro from conducting exploration on areas that fall within the páramo. The company argues it doesn’t believe its deposit lies within the protected ecosystem.

“We think the move by the company is prudent, given that clarity on páramo boundaries has been slow-coming,” analysts at BMO Capital Markets say.

The junior is focused on resolving the permitting issue and aims to complete a prefeasibility study for the Angostura underground project by year-end.

CGA Mining and B2Gold were the week’s most traded stocks, following B2Gold’s US$1.1-billion, all-stock, friendly bid for CGA, an Australian firm that operates the Masbate gold mine in the Philippines.

CGA shareholders will receive 0.74 of a B2Gold share for each share held. This works out to $3.18 per share, representing a 22% premium over CGA’s 20-day, volume-weighted average price.

Over the week, CGA advanced 43¢ per share to $3.09, with 80.4 million shares changing hands. Vancouver-based B2Gold added 10¢ to end at $4.23, on 56.3 million shares traded. 

TSX most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
CGA Mining	CGA	80426	3.16	2.52	3.09	+	0.43
B2Gold	BTO	56282	4.38	3.67	4.23	+	0.1
Avion Gold	AVR	28554	0.83	0.73	0.73	–	0.05
Kinross Gold	K	28486	10.27	9.76	10.11	+	0.21
Orbite Alumnae	ORT	22451	3.93	2.77	3.32	+	0.57
New Gold	NGD	21238	12.5	11.5	12.32	+	0.81
Belo Sun Mng	BSX	21096	1.58	1.27	1.39	–	0.09
Eldorado Gold	ELD	19440	15.78	15.02	15.17	–	0.12
Yamana Gold	YRI	18203	19.16	17.97	18.87	+	0.63
Romarco Mnrls	R	18098	1.4	1.02	1.02	+	0.09

TSX greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Cluff Gold	CFG	107	2.75	1.31	1.64	+	56.1
Hard Creek Ni	HNC	742	0.09	0.05	0.09	+	54.5
Erdene Res Dev	ERD	2081	0.26	0.17	0.26	+	52.9
Ivanhoe Austrl	IVA	50	0.74	0.74	0.74	+	51
Carlisle Goldf	CGJ	2506	0.24	0.18	0.24	+	50
Ratel Grp	RTG	96	0.12	0.08	0.12	+	50
Pilot Gold	PLG	5624	1.83	1.16	1.8	+	47.5
St Augustine	SAU	4854	0.49	0.19	0.28	+	47.3
Calvista Gold	CV Z	418	0.71	0.4	0.58	+	45
Corvus Gold	KOR	856	1.25	0.92	1.25	+	38.8
Eco Oro Mnls	EOM	5588	1.28	0.8	0.83	–	40.7
Coro Mining	COP	124	0.4	0.32	0.32	–	25.5
Katanga Mng	KAT	1981	0.57	0.43	0.44	–	24.1
Nautilus Minls	NUS	1650	1.15	0.85	0.85	–	24.1
Western Copper	WRN	758	0.92	0.68	0.69	–	23.3
Curis Res	CUV	183	0.77	0.6	0.6	–	22
TriAusMin	TOR	1755	0.07	0.05	0.06	–	21.4
Shore Gold	SGF	1563	0.34	0.26	0.27	–	20.5
Forbes & Man C	FMC	517	1	0.66	0.66	–	20.4
Peregrine Diam	PGD	593	0.48	0.36	0.38	–	18.2

TSX greatest value change

		Week
		Change	Close	Change
Royal Gold	RGL	94476	95.19	+	3.46
Franco-Nevada	FNV	2916651	59.24	+	1.91
Pan Am Silver	PAA	2436142	21.85	+	1.89
Centerra Gold	CG	3618264	11.66	+	1.58
Potash Cp Sask	POT	14559442	42.88	+	1.51
First Majestic	FR	3691356	23.21	+	1.28
Contintl Gold	CNL	4371777	9.26	+	0.89
Silver Std Res	SSO	1391086	16.47	+	0.88
Goldcorp	G	17261881	45.76	+	0.85
Tahoe Res	THO	1908268	21.27	+	0.84
Inmet Mining	IMN	5576269	47.78	–	6.45
Teck Res B	TCKB	13011441	30.07	–	2.95
Teck Res A	TCKA	11477	32.04	–	2.87
First Quantum	FM	9104265	20.92	–	2.19
Agrium	AGU	3594735	99.21	–	1.53
Major Drilling	MDI	1566708	10.75	–	0.89
Harry Winston	HW	596563	12.14	–	0.74
Primero Mng	P	3617582	4.97	–	0.6
Seabridge Gold	SEA	271502	18.6	–	0.58
Eco Oro Mnls	EOM	5587795	0.83	–	0.57

TSX Venture Exchange

The S&P/TSX Venture Composite Index closed the week at 1,345.72, up 2.05%, or 27.62 points. The index grinded out gains despite volatile commodity prices and macroeconomic uncertainty surrounding the eurozone recovery, and growth profiles in some of Asia’s most prolific markets.

Gold prices dipped US$1.50 before ending the week at US$1,773 per oz., while spot copper prices slid US5.5¢, en route to a US$3.76 per lb. close. Brent crude prices fell 4.5% on the week, closing at US$111 per barrel after falling to a mid-week low of US$106 per barrel.

China’s economic slowdown grabbed market attention, as an HSBC survey indicated that manufacturing is set to contract for the eleventh consecutive month in September. China announced a number of initiatives to stabilize its export growth, including increased loan capacity for exporters, and an expedited payment system on export tax rebates.

Vancouver-based streaming outfit Sandstorm Gold topped the value-added category, marking the second straight week of strong gains for the company. Sandstorm gained $2.02 per share during the period before closing at $12.35. After announcing a US$10-million streaming agreement with Luna Gold on Sept. 10, Sandstorm followed up with US$60-million agreement with Colossus Minerals to assist with financing at the gold company’s Serra Pelada precious metals mine in Para State, Brazil.

Gold explorer Chesapeake Gold posted strong weekly gains, rising $1.62 en route to a $9.72 close. Chesapeake released an update on a prefeasibility study at its flagship Metates gold-silver project in Durango State, Mexico. The company reported that all work related to design and engineering has been completed, noting that water-conservation measures have been
incorporated into the development planning. The Mexican government also updated Chesapeake on routing, and anticipates natural-gas delivery from a pipeline that directly affects engineering of the company’s power plant.

During the week Orko Silver dropped 11%, or 20¢, after updating the resource estimate at its La Preciosa silver-gold project in Durango State. Orko has been wrestling with the project since Pan American Silver dropped its right to a stake in La Preciosa in early April. Orko reports that a “super pit” is being considered, as opposed to an underground mine proposed under previous studies. La Preciosa’s open pit holds 29 million indicated tonnes grading 105 grams silver per tonne and 0.21 gram gold, for 110 million equivalent oz. silver.

TSX-V most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
RPT Uranium	RPT	32029	0.02	0.01	0.02	–	0.02
Aurcana Corp	AUN	17001	1.19	1.03	1.15	+	0.06
Sandstorm Mt&E	SND	9668	0.34	0.25	0.34	+	0.05
GoldQuest Mng	GQC	9124	2	1.63	1.95	+	0.29
Dacha Str Mtls	DSM	7040	0.54	0.51	0.53	+	0.01
Bitterroot Res	BTT	6499	0.19	0.13	0.18	+	0.05
Midlands Minls	MEX	6454	0.02	0.01	0.02	–	0.01
Atacama Pac Gd	ATM	6245	3.25	2.75	3.25	+	0.25
Klondike Gold	KG	5701	0.11	0.05	0.09	+	0.02
Canasia Indust	CAJ	5603	0.04	0.03	0.04		0

TSX-V greatest percentage change

Mukuba Res	MKU	517	0.13	0.05	0.13	+	316.6
Canterra Mnls	CTM	417	0.14	0.06	0.14	+	145.4
Valhalla Res	VH	175	0.1	0.05	0.1	+	122.2
Nubian Res	NBR	43	0.2	0.09	0.2	+	122.2
Claim Post Res	CPS	380	0.08	0.05	0.08	+	114.2
Serengeti Res	SIR	807	0.19	0.08	0.19	+	111.1
Anglo Swiss	ASW	822	0.06	0.02	0.05	+	100
Richmond Mnls	RMD	198	0.02	0.02	0.02	+	100
Auramex Res	AUX	667	0.01	0.01	0.01	+	100
Tearlach Res	TEA	19	0.14	0.08	0.14	+	100
RPT Uranium	RPT	32029	0.02	0.01	0.02	–	57.1
Blackstone Ven	BLV	867	0.01	0.01	0.01	–	50
Black Bull Res	BBS	104	0.01	0.01	0.01	–	50
Sheltered Oak	OAK	135	0.01	0.01	0.01	–	50
Cons Richland	CRX	68	0.15	0.1	0.1	–	44.4
Unity Energy	UTY	267	0.1	0.09	0.09	–	41.9
Alix Res	AIX	3424	0.07	0.03	0.04	–	41.6
Inform Res	IRR	41	0.11	0.09	0.09	–	40
Baroyeca Go&Si	BGS	81	0.02	0.02	0.02	–	40
BCM Res	B	10	0.09	0.06	0.06	–	38.8

TSX-V greatest value change

		Week
		Change	Close	Change
Sandstorm Gld	SSL	5087607	12.35	+	2.02
Lumina Copper	LCC	375385	11.11	+	1.81
Chesapeake Gld	CKG	279778	9.72	+	1.62
Abitibi Royalt	RZZ	41330	1.3	+	0.48
Pac Booker Min	BKM	52989	14.83	+	0.45
Solvista Gold	SVV	2692542	1.1	+	0.41
Comet Inds	CMU	10000	3.3	+	0.3
GoldQuest Mng	GQC	9123936	1.95	+	0.29
Newstrike Cap	NES	657041	2.5	+	0.28
D Arianne Res	DAN	757381	1.22	+	0.28
Reservoir Mnls	RMC	1215590	3.12	–	0.52
Gold Reserve	GRZ	61096	3.14	–	0.36
Orko Silver	OK	3649174	1.61	–	0.2
Olivut Res	OLV	822685	0.83	–	0.19
EPM Mng Vent	EPK	12500	0.7	–	0.18
Tasman Metals	TSM	579185	1.55	–	0.16
Galway Res	GWY	860783	1.2	–	0.15
Lara Expl	LRA	82889	1.28	–	0.14
SnipGold	SGG	41600	0.46	–	0.14
Foran Mng	FOM	571360	0.52	–	0.13

U.S. markets

The S&P 500 Index remained near highs not seen since December 2007 after the European Central Bank announced its bond-buying plan on Sept. 6, and a week later, the Federal Reserve followed with a third round of quantitative easing. But U.S. equities still slipped during the trading week, as fears resurfaced about weak economic growth, high unemployment, upcoming third-quarter earnings and the eurozone’s debt crisis. The Dow Jones Industrial Average closed 65.16 points, or 0.48% lower, at 13,528.21, while the S&P 500 slipped 11.03 points, or 0.75%, to 1,454.74. The Philadelphia Gold and Silver Index edged 0.03 points, or 1.12% lower, to 191.94.

Alpha Natural Resources was the most actively traded stock following news of the company’s plans to focus on metallurgical coal, cut overhead costs by US$150 million and trim annual coal output by 16 million in 2013. Forty percent of the reduction would come from higher-cost thermal coal operations in the East that the company says is “unlikely to be competitive for the foreseeable future.” Shares of Alpha closed US$1.34, or 15.6% lower, at US$7.21.

A positive preliminary economic assessment of New Gold’s Blackwater gold project in central B.C. sent the company’s shares up US87¢ to US$12.72. Over its initial 15-year mine life, the study estimated that Blackwater would produce an annual average of 507,000 oz. gold and 2.04 million oz. silver, at total cash costs per ounce sold, net of by-product sales, of US$536 per oz. Construction is planned in 2015, with first production in 2017.

Cornerstone Capital Resources shot up 63.7% to US11¢ per share on news that it signed a letterof intent with Benton Resources for the 51 zone and the Windowglass Hill deposits on its Cape Ray property, 25 km northeast from Port aux Basques in Newfoundland. Under the agreement, Benton can earn up to a 75% interest in the two deposits. In July, Cornerstone reported inferred resources for the 51 zone of 530,000 tonnes grading 6.10 grams gold per tonne and 15.86 grams silver per tonne, and at Windowglass Hill, an inferred resource of 1.81 million tonnes grading 1.77 grams gold and 11.28 grams silver. Mineralization reaches 270 metres below surface for the 51 zone, and 140 metres for Windowglass Hill.

U.S. most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
Alpha Nat Res*	ANR	110723	8.43	7.1	7.21	–	1.34
Alcoa*	AA	98822	9.79	9.1	9.13	–	0.71
Freeport McMo*	FCX	80311	42.52	40.02	40.65	–	1.99
Kinross Gold*	KGC	66189	10.54	10.02	10.33	+	0.14
Arch Coal*	ACI	55367	8	6.91	6.95	–	0.96
Cliffs Nat Rs*	CLF	53652	44	40.27	40.93	–	4.62
Molycorp*	MCP	52659	14.44	12.65	13	–	0.43
Barrick Gold*	ABX	47842	43.19	41.58	42.86	+	0.48
Gold Fields*	GFI	42270	13.56	12.75	13.25	+	0.35
Newmont Mng*	NEM	40825	57.93	56.01	56.31	–	0.89

U.S. greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Cornerstone C*	CTNXF	19	0.11	0.08	0.11	+	63.7
Solitario Ex&*	XPL	280	1.9	1.44	1.9	+	25.8
Timberline Rs*	TLR	591	0.42	0.31	0.41	+	20.5
Northern Dyn*	NAK	5343	5.4	3.89	4.66	+	15.9
Golden Star*	GSS	20573	2.05	1.78	2.04	+	13.9
Midway Gold*	MDW	1867	1.76	1.42	1.61	+	13.3
Kobex Mnls*	KXM	76	0.65	0.55	0.64	+	12.2
Richmont Mine*	RIC	2107	5.5	4.69	5.37	+	10.9
Nevsun Res*	NSU	6683	4.97	4.43	4.96	+	10.7
Santa Fe Gold*	SFEG	649	0.43	0.34	0.42	+	10.5
Western Coppr*	WRN	249	1.32	0.7	0.71	–	24.4
Gold Am Mng*	SILA	157	0.03	0.02	0.02	–	21.4
Alpha Nat Res*	ANR	110723	8.43	7.1	7.21	–	15.6
North Am Pall*	PAL	11077	2.26	1.91	1.92	–	15.4
Stillwater Mg*	SWC	18161	13.81	11.82	12.06	–	13.3
Arch Coal*	ACI	55367	8	6.91	6.95	–	12.1
Gold Reserve*	GRZ	811	3.7	3.18	3.25	–	12.1
Augusta Res*	AZC	96	3.13	2.64	2.7	–	12
Cliffs Nat Rs*	CLF	53652	44	40.27	40.93	–	10.1
Entree Gold*	EGI	1178	0.74	0.61	0.63	–	10.1

U.S. greatest value change

		Week
		Change	Close	Change
Compass Mnls*	CMP	721682	76.47	+	4.34
Randgold Res*	GOLD	5055184	123.86	+	3.52
Royal Gold*	RGLD	5496493	97.27	+	2.72
Pan Am Silver*	PAAS	20370032	22.46	+	1.9
Franco-Nevada*	FNV	1632336	60.78	+	1.77
Potash C Sask*	POT	36604575	44	+	1.42
Soc Quim&M Ch*	SQM	6075736	63.58	+	1.18
Alliance Rs P*	ARLP	376450	63.5	+	0.9
New Gold*	NGD	27533002	12.72	+	0.87
ASA (Bermuda)*	ASA	328037	25.92	+	0.84
Cliffs Nat Rs*	CLF	53652411	40.93	–	4.62
Rio Tinto*	RIO	2294753	49.42	–	3.76
Walter Energy*	WLT	2753473	34.92	–	3.32
Teck Res B*	TCK	12791191	30.78	–	3.25
BHP Billi-BBL*	BBL	4874475	63.36	–	2.83
Agrium*	AGU	1128257	101.4	–	2.34
BHP Billi-BHP*	BHP	10312106	69.95	–	2.33
Freeport McMo*	FCX	80310650	40.65	–	1.99
Intrepid Pots*	IPI	1089989	22.43	–	1.96
Stillwater Mg*	SWC	18160636	12.06	–	1.85