Toronto Stock Exchange – May 5 -11

The old adage “sell in May and go away” hasn’t held up thus far this year. The latest market rally showed sustained strength into the month as the TSX composite index grew by over 220 points to finish the May 5-11 reporting period at 10,094.14.

That strength was built on a growing consensus that the worst of the business cycle is over, with Western economies poised to return to growth later this year. In Toronto, that message played into higher valuations for the energy and financials sectors.

Gold wasn’t left out of the party either. The yellow metal made modest gains to finish the period at around US$912 per oz., carrying the Global Gold index up along with it by 15 points to 305.49.

The Capped Metals and Mining index didn’t perform quite so well, thanks to mixed performances within the base metals complex. While nickel, tin and lead prices were all higher for the period, copper prices fell. Zinc finished the period where it began — at US68¢ per lb. — but only after touching a respectable high of US72¢.

That slight rally in the zinc price, combined with renewed faith in its balance sheet after an equity financing, helped make Breakwater Resources the most actively traded stock for the period. Breakwater’s shares finished 11¢ higher at 31¢ as investors used the zinc producer as a way to play the metal.

Fellow zinc miner Lundin Mining also drew heavy interest. Its shares, however, finished 11¢ lower after HudBay Minerals announced it was selling its 16.7% stake in the company for a US$100-million pretax profit.

A US$61.1-million first-quarter profit for Uranium One caught the market’s attention, especially when compared with its US$114.9-million loss a year earlier. More profit came from more production — thanks in part to the company’s new South Inkai mine in Kazakhstan, which began production in January. Uranium One shares finished the period 15¢ higher at $3.86.

Word that African Copper had secured US$22.5 million in funds from Zambia Copper Investments, allayed market concerns over the financial health of the company and sent its shares up 375% to 19¢. The cash injection allows African Copper to pay bondholders and trade creditors and leaves existing shareholders with a 15.14% equity interest in the company and Zambia Copper with an 80% stake.

Central GoldTrust’s move to sell 5.5 million of its units sent its shares down 18% to $42.39, despite continued strength in the gold price. The company sold 5.5 million of its units to CIBC for $36.30 per unit, raising US$200 million to invest in gold bullion. The company now has 10.9 million units outstanding, represented by 398,010 oz. of gold bullion, 4,980 oz. in gold certificates and roughly US$7.8 million in cash and short-term notes.

TSX most active issues
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Breakwater Res	BWR	175274	0.34	0.17	0.31	+ 0.11
Lundin Mng	LUN	163174	2.97	2.33	2.57	-0.11
Teck B	TCKB	69363	17.09	14.81	15.97	+ 0.27
Mercator Mnls	ML	43096	2.06	1.73	1.87	-0.19
Denison Mines	DML	35962	2.90	2.38	2.52	-0.37
Uranium One	UUU	32465	3.95	3.47	3.86	+ 0.15
Vaaldiam Res	VAA	28609	0.13	0.03	0.10	+ 0.08
Yamana Gold	YRI	27313	10.69	9.74	9.91	-0.08
Equinox Minls	EQN	25879	2.64	2.27	2.45	-0.03
Eastern Platin	ELR	24058	0.62	0.53	0.54	-0.04

TSX greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Vaaldiam Res	VAA	28609	0.13	0.03	0.10	+400.0
African Copper	ACU	20363	0.19	0.06	0.19	+375.0
Colombia Goldf	GOL	4999	0.11	0.03	0.08	+300.0
Opta Minls	OPM	22	1.60	1.12	1.12	+115.3
Franc-Or Res	FOR	965	0.09	0.05	0.06	+100.0
Pure Nickel	NIC	1496	0.25	0.12	0.23	+ 91.6
PolyMet Mng	POM	938	2.22	1.25	2.17	+ 80.8
Anaconda Mng	ANX	1898	0.18	0.11	0.18	+ 80.0
Revett Mnls	RVM	361	0.16	0.10	0.14	+ 75.0
Thundermin Res	THR	1179	0.24	0.10	0.21	+ 61.5
North Atlc Res	NAC	50	0.08	0.07	0.07	-30.0
TVI Pacific	TVI	3685	0.04	0.03	0.04	-20.0
Diamond Fields	DFI	29	0.05	0.04	0.04	-20.0
DynacorGoldM	DNG	282	0.26	0.22	0.22	-18.5
Crescent Gold	CRA	27	0.12	0.09	0.09	-18.1
Central Gold-T	GTU_U	493	53.07	42.25	42.39	-18.1
Laramide Res	LAM	1949	2.30	1.82	1.90	-17.3
Australn Solom	SGA	24	0.25	0.21	0.21	-16.0
Richmont Mines	RIC	200	4.69	3.81	3.89	-15.4
Gitennes Expl	GIT	132	0.07	0.05	0.06	-14.2

TSX greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Seabridge Gold	SEA	261444	27.95	+ 3.67
Goldcorp	G	19713314	37.50	+ 3.17
Barrick Gold	ABX	22302365	39.15	+ 2.70
Newmont Mng	NMC	45534	49.47	+ 2.51
Major Drilling	MDI	724731	17.20	+ 1.81
Agnico-Eagle	AEM	4946697	56.07	+ 1.72
Teck A	TCKA	51801	19.71	+ 1.71
Silver Std Res	SSO	757382	22.79	+ 1.64
Pan Am Silver	PAA	955761	22.44	+ 1.64
Athabasca Pota	API	5324524	5.19	+ 1.51
Central Gold-T	GTU_U	493222	42.39	-9.37
Agrium	AGU	7224648	51.80	-3.48
Potash Cp Sask	POT	6244888	110.73	-2.27
Inmet Mining	IMN	2747109	48.22	-2.08
Horizns G Bear	HGD	7346992	7.42	-0.98
HudBay Minls	HBM	10984666	8.09	-0.74
Richmont Mines	RIC	200276	3.89	-0.71
Eldorado Gold	ELD	11455434	9.44	-0.70
Russell Metals	RUS	2395250	14.30	-0.62
NorthernDynM	NDM	490633	7.76	-0.57