Golden wave cause commodities to rise

Continued exuberance in the metals market enabled the junior-mining-dominated S&P-TSX Venture Exchange composite index to close at 1754.39, up an impressive 3.2%, or almost 54 points, during the period Nov. 24-30. Average daily volume over the week exceeded 46 million shares.

Having blown through the US$450-per-oz. level, the gold price closed out the period at US$451 an ounce on the New York spot market, up US$2.50 from the previous report period. More significant was the rally to the US$454-per-oz. level, as financial markets remained weary of a continued, stagnating U.S. economy and dropping consumer confidence. The American greenback saw itself at record lows in comparison with the euro, though some improvement was evident following the release of data from the U.S. Commerce Department showing a marginally higher-than-estimated economic growth rate for the third quarter.

Silver continued at a new 7-month high, closing out the session at US$7.70 per oz. on the New York spot market, up 18 over the report period. Platinum saw good gains, rising US$14 to close at US$870 an ounce. Palladium closed down again, finishing the trading period at US$209 per oz. on the spot market, off US$6 from the previous week’s close.

Copper continued to make gains, closing at the US$1.47-per-lb. level, up 3.5 from the previous week. Nickel finished up at US$6.43 per lb., adding 20.

The gap between new lows and highs on the junior mining board narrowed. Some 67 Venture-Exchange-listed explorers dropped to new yearly lows, compared with 46 companies touching new 52-week highs.

The volume leader on the week was aspiring coal developer Sennen Resources, which saw 15.6 million shares change hands. The junior added 16 to close at 46, for a gain of 53%. The company holds three coal projects in Queensland, Australia, two of which have been issued development licences. Strong interest in securing coal supply, particularly from China, has induced several parties to express interest in potential joint ventures and mining agreements.

The second most active volume trader was Bell Coast Capital, which saw 8 million shares trade. Bell Coast posted a gain of 77%, or 13.5, to end the week at 31 a share. The company, which has extensive copper-gold projects in the southern Gobi Desert of Mongolia, as well as gold properties in Nevada, is acquiring the Sheep Mountain uranium mine in Wyoming from US Energy and Crested in return for payments of up to $3.75 million and the issuance of 3 million shares. During its life, from the late 1960s to 1980, the mine produced almost 17.4 million lbs. uranium from ore averaging 0.17% U3O8. The company has arranged a $3-million private placement financing through Canaccord Capital.

OntZinc remained one of the more active traded issues, with 6.7 million shares crossing the floor. However, the stock diminished by almost 27%, or 4, and closed at 11. Investors remain intrigued by the company’s planned purchase of Hudson Bay Mining & Smelting from Anglo American.

Top value gainers included Northern Dynasty Minerals, which added 46 to close at $6.46, and Western Canadian Coal, which gained 40 to finish at $5.05.