Toronto Stock Exchange, June 3-7

It was a disappointing period for global markets and the S&P/TSX Composite Index reflected investors’ glum mood, falling 288 points to 12,737.30 points for the period.

Underwhelming jobs data in the U.S., slowed growth in Japan and comments from the European Central Bank (ECB) all contributed to the sell-off. 

Weak Chinese data raised the spectre of slowing momentum in its economy and led to a commodity sell-off. Inflation numbers also came in lower than expected. 

It was little wonder that mining stocks suffered, as the S&P/TSX Global Gold Index was off 8 points to 197.55 points, and the S&P/TSX Capped Diversified Metals & Mining Index was down 40 points to 795.23 points.

The price for gold was off US$5 to US$1,383 per oz. The price for copper, however, rose by 4¢ to US$3.27 per lb. 

Kinross Gold was the period’s most popular miner with 24.7 million shares traded, but its price fell by 43¢ to $6.30. Much of the activity came after it announced first-quarter results that showed a dip in earnings to $170 million from $196 million. The fall came despite production increasing to 648,897 oz. gold from 588,358 oz., which led to higher revenues year-over-year. The company expects to meet its guidance of 2.4–2.6 million oz. production and said it was making steady progress at its projects, especially at Tasiast, where it is pushing ahead on a full feasibility study.

B2Gold shares began trading on the New York Stock Exchange, and the increased exposure helped make its stock the second most actively traded on the TSX, with 20 million shares changing hands. The increased activity didn’t increase the market cap, and the company’s shares fell 26¢ to $2.35. Moving to the NYSE means the company will no longer trade on the OTCQX. 

Teranga Gold is taking another run at Oromin Explorations. The Toronto-based company made an all-share offer for Oromin and its 43.5% stake in the OJVG gold project, 650 km southeast of Dakar in Senegal. OJVG is adjacent to Teranga’s multi-million ounce Sabodala gold mine and the company already has a 14% stake in Oromin. Iamgold has a 12% interest in Oromin. The news sent Oromin shares up 55% to 38¢ for the period.

Forbes and Manhattan Coal was downgraded by Paradigm Capital to a “hold” from a “buy” and investors took note, sending the company’s stock down 29% to 40¢. 

Mediterranean Resources moved the other way as its shares doubled to 4¢. While the company has been known for gold deposits in northeastern Turkey, the junior is now moving into the antimony market. The company picked up two past-producing mines of the metal in Spain and has plans to buy even more around the Mediterranean.

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