Toronto Stock Exchange, Sept. 30-Oct. 4

The S&P/TSX Composite Index ended the week in negative territory as the dispute over the U.S. federal budget and debt ceiling rattled investors. The index plunged 85.4 points to 12,758.65. The S&P/TSX Global Gold Index dropped 6.8 points to 169.17, and the S&P/TSX Capped Diversified Metals & Mining Index lost 26.7 points to 779.51.

Entree Gold was the top percentage gainer, adding 36.5% to 40¢. It reported that the Mongolian government lifted the transfer restriction on two of its mining licences near the Oyu Tolgoi copper-gold project in Mongolia. The permits, suspended in February, are subject to a joint venture with Oyu Tolgoi LLC, a company held by the Mongolian government and Turquoise Hill Resources. Under the joint venture, Entree will keep a 20% interest in production from the mining licences, with Oyu Tolgoi LLC keeping the rest. The mining permits are vital to the future of underground operations at Oyu Tolgoi, but Entree is still discussing its exclusion from the 2009 Oyu Tolgoi investment agreement with all stakeholders, including the Mongolian government, Oyu Tolgoi LLC, Erdenes Oyu Tolgoi LLC and Rio Tinto.

Northcliff Resources rose 34% to 38¢ after announcing that New Zealand-based Todd Minerals could provide up to $39 million to advance the feasibility stage Sisson tungsten-molybdenum project in New Brunswick. If Todd completes the staged $39-million investment, it could gain 13.9 million Northcliff shares — or 15% of the company — and up to a 21.5% stake in Sisson.

Prophecy Coal enjoyed a share price boost on no news during the week, climbing 33% to 10¢. However, on Oct. 7, it signed a sales contract for 30,000 tonnes of coal per month from its Ulaan Ovoo mine in Mongolia with a new buyer. The first shipment should begin in November, coinciding with the mine’s restart date. Prophecy temporarily halted mining operations at Ulaan Ovoo in July 2012, noting that it had enough stockpiles to meet its supply obligations for 2012.

Perth-based Mirabela Nickel was the most actively traded stock with 40.5 million shares traded. It closed down a cent at 2¢ after Moody’s and Standard & Poor’s downgraded Mirabela’s unsecured debt and corporate credit ratings after the company’s market updates. The nickel producer warned on Oct. 1 that after terminating a sales agreement with one of its main customers, Votorantim, it would likely default on its debt facilities. The company has a US$50-million debt facility secured by the sales contract with Votorantim and US$395 million of 8.75% senior unsecured notes due in 2018. 

Mirabela delisted its shares from the Toronto Stock Exchange when trading closed on Oct. 4, 2013, but continues to trade on the Australian Securities Exchange.  

TSX most active issues

TSX greatest percentage change

TSX greatest value change