Market news

Toronto Stock Exchange

The S&P/TSX Composite Index slid for the third consecutive week, ending March 12–16 down 0.05%, or less than 7 points from the previous week, at 12,496.96. 

Gold and diversified miners performed poorly as gold’s spot price tumbled US$53.40 per oz. to US$1,660.10. The S&P/TSX Global Gold Index finished down 21 points to 337.74, and the S&P/TSX Capped Diversified Metals & Mining Index dropped 23 points to 1,102.21. 

Pure Nickel was the week’s biggest percentage gainer, moving up 22% to 11¢ on no news. The company announced on March 1 that its Japanese partner Itochu would fund a US$4.9-million exploration program at the joint MAN Alaska project this year. 

On news of a $3.5-million private placement, Silver Bear Resources’ shares gained 18% to close at 73¢. The company intends to complete a 4.2-million-share non-brokered financing at 80¢ for $3.5 million in net proceeds. Tabac Ventures has agreed to acquire all the shares issued in the private placement. Silver Bear plans to fund exploration and improve infrastructure with the proceeds at its Mangazeisky silver property in Russia. The financing is expected to close soon. 

Starcore International Mines moved up 17.1% to 41¢ after reporting results for the second quarter and six months ended Jan. 31, 2012. The company announced quarterly revenue of $15 million and earnings of $3.5 million. Revenue over the six months equalled $35.4 million, and earnings came in at $6.7 million. Earlier in the week, the company announced second-quarter production results at its Mexican San Martin gold-silver mine. For the three months, the mine churned out 78,824 tonnes grading 2.14 grams gold and 35 grams silver per tonne for 6,068 equivalent oz. gold. The production met the company’s minimum target of producing 2,000 equivalent oz. gold each month. 

Vena Resources moved up 17% to 35¢ after acquiring historical drill data showing zinc mineralization horizons 5 km east of its Azulcocha mill in Peru. The data summarized results from a 1974 drill campaign completed by former Azulcocha zinc mine operators. Although the report is not National Instrument 43-101 compliant, Vena says it has confirmed the “existence of the drill platforms” and has “found trenches that have surface mineralization updip from several of the mineralized intersections.”

Fertilizer majors Agrium and Potash Corp. of  Saskatchewan were among the top value gainers, with Bloomberg reporting on March 16 that U.S. farmers are expected to plant more corn and wheat this year than last year, according to a growers survey by Allendale. It also noted farmers will plant fewer acres of soybeans than the government estimated in February. Agrium advanced $2.67 per share to $85.22, and PotashCorp added $1.73 per share to close at $45.40. 

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Torex GoldTXG382112.281.961.96-0.25

Kinross GoldK2984810.989.669.90-1.10

Eldorado GoldELD2319314.3013.0313.45-0.68

Barrick GoldABX2257745.6142.4143.62-1.83

GoldcorpG2124246.9143.3343.68-3.18

Great Basin GoGBG172660.840.670.67-0.15

Teck BTCKB1688437.1234.7136.75+0.22

Potash Cp SaskPOT1481645.8241.8045.40+1.73

Uranium OneUUU147653.363.013.05-0.08

Denison MinesDML144021.681.481.520.00

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Pure NickelNIC1500.110.090.11+22.2

China Gold IntCGG86494.773.954.65+21.7

Silver Bear RsSBR8030.740.620.73+17.7

Starcore Int VSAM43150.450.350.41+17.1

Vena ResVEM6090.370.310.35+16.6

Allied GoldALD141.981.701.98+16.4

Marathon GoldMOZ540.830.700.80+15.9

Harte GoldHRT12620.310.230.30+15.3

Claude ResCRJ27561.251.031.25+14.6

CanAlaska UranCVV1090.510.440.51+13.3

Guyana GldfldsGUY46075.173.893.89-24.3

INV MetalsINV580.210.190.19-20.8

Grandview GldGVX180.040.040.04-20.0

Silver PredatrSPD2770.350.300.30-18.9

Carlisle GoldfCGJ11140.290.220.22-18.5

Great Basin GoGBG172660.840.670.67-18.2

Evolving GoldEVG6050.320.260.28-17.6

Rio Verde MnlsRVD14190.470.360.38-17.3

Keegan ResKGN9144.703.863.86-17.1

Avion GoldAVR80921.601.301.30-17.2

TSX greatest value change

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VOLUMECLOSECHANGE

AgriumAGU428328385.22+2.67

Labdr I-Ore RoLIF_U119083736.00+1.75

Potash Cp SaskPOT1481594745.40+1.73

Walter EnergyWLT1113062.65+1.35

Horizns G BearHGD194124810.27+1.14

Tahoe ResTHO140520322.93+0.84

China Gold IntCGG86493154.65+0.83

Mineral DepostMDM144006.25+0.43

Karnalyte ResKRN1481319.33+0.35

XinergyXRG11368922.81+0.31

GoldcorpG2124180843.68-3.18

Royal GoldRGL1308563.15-2.85

Allied NevadaANV131048831.19-2.80

Agnico-EagleAEM484282133.44-2.66

Detour GoldDGC439784724.35-2.44

Franco-NevadaFNV290892741.03-2.34

Silver WheatonSLW706383432.89-2.32

Pan Am SilverPAA377086121.09-2.30

First MajesticFR283887416.82-2.19

Coeur d AleneCDM14326924.04-2.03

TSX Venture Exchange

The S&P/TSX Venture Composite Index was down 43.64 points in the March 12–16 period, ending at 1,606.17 points after dipping as low as 1,585 points. Volume ranged from 77 million shares traded early in the week to as many as 122 million shares at the end, for an average of 100 million shares traded daily.

The Sandstorm royalty companies were the most traded companies, with both reporting annual financial statements. The two Sandstorms are closely related, with overlapping management teams including Nolan Watson as president and CEO of both companies.

Sandstorm Gold had 31.5 million shares traded as it climbed to an all-time high of $1.85 following a fairly steady climb since late January. Sandstorm Gold earned US$4.9 million in the fourth quarter compared with US$1.7 million in fourth-quarter 2010, while gold sales for 2011 totalled 18,500 oz. in an almost 700% increase from 2010. For 2012 the company expects attributable production between 25,000 and 35,000 oz. gold from five mines.

Sandstorm Metals and Energy, meanwhile, ended even at 47¢ with 16.8 shares changing hands. The company had a US$13.1-million net loss in the fourth quarter, including a US$14.6-million non-cash impairment charge related to Royal Coal’s severe financial and operational difficulties. Royal Coal represents 10% of the company’s capital base, while Sandstorm Metals has US$40-million cash-on-hand and US$80 million in cash-flow guarantees.

The trading period had no runaway value gainers, with Atacama Pacific Gold gaining 39¢ to end on top at $4. The company announced an option agreement with a Chilean company for water-use rights on a 2,670-sq.-km land package located 100 km north of its Cerro Maricunga oxide gold project. If Atacama finds a suitable water source it will pay the Chilean company US$30,000 per litre each second for the water under application and US$10,000 more per litre each second if granted the right to use it. The company estimates it needs 100 litres per second for its project. At
acama has traded between $3.50 and $4 on light volume since October.

Little-traded Stratabound Minerals was the biggest percentage gainer, doubling to 10¢ after announcing a $600,000 private placement. The financing includes 4 million shares at 5¢ for $200,000 and 5 million flow-through shares at 8¢ for $400,000. Insiders are funding 50% of the 5¢ placement and 30% of the flow-through. The company will be using the funds to apply for permits to move its Captain North Extension lead-zinc-silver deposit in New Brunswick towards production, and explore claims next to the CNE mining lease.

TSX-V most active issues

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(000s)HIGHLOWCLOSECHANGE

Sandstorm GldSSL314691.851.691.85+0.07

Sandstorm Mt&ESND168190.470.460.470.00

Corsa CoalCSO91490.380.340.38-0.01

Aurcana CorpAUN81001.020.910.91-0.13

Brookemnt  CptBKT79730.130.050.05-0.06

Encore Ren ResEZ75690.040.020.02-0.01

Canaco ResCAN72741.200.941.05-0.07

Rusoro MngRML68250.120.050.06-0.06

RPT UraniumRPT53970.070.050.06-0.01

Great WesternGWG53550.590.510.55-0.02

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(000s)HIGHLOWCLOSECHANGE

Stratabd MnrSB780.100.050.10+150.0

Goldbank MngGLB630.320.170.32+146.1

Advanced PrimaAPD920.090.090.09+80.0

Mill Bay VentMBV550.080.050.08+60.0

Rupert ResRUP100.200.200.20+53.8

Abbastar ResABA570.090.080.09+50.0

Huntington ExpHEI280.090.080.09+50.0

Amato ExplAMT310.090.090.09+50.0

Kenieba GoldfKEN1620.100.080.10+42.8

Pac Arc ResPAV1290.140.100.14+40.0

Brookemnt  CptBKT79730.130.050.05-54.5

Rusoro MngRML68250.120.050.06-50.0

Q-Gold ResQGR660.390.220.23-41.0

Senator MinlsSNR1000.030.030.03-40.0

Orestone MngORS2730.070.050.05-37.5

Victory VentVVN1720.080.050.05-37.5

Indigo ExplIXI13940.310.190.19-36.6

Prospero SilvePSL1660.220.130.14-36.3

Cougar MnlsCOU5200.030.010.02-33.3

Encore Ren ResEZ75690.040.020.02-33.3

TSX-V greatest value change

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VOLUMECLOSECHANGE

Atacama Pac GdATM11954004.00+0.39

Orko SilverOK40034182.48+0.35

D Arianne ResDAN19674461.38+0.29

Goldbank MngGLB628000.32+0.19

St Elias MnsSLI6977940.75+0.17

Chesapeake GldCKG22500711.80+0.16

Lumina CopperLCC19134815.46+0.16

Northern GraphNGC22133472.25+0.15

Diamcor MngDMI2536250.90+0.14

Abitibi RoyaltRZZ239041.14+0.13

Bear Creek MngBCM6397183.55-0.36

Atac ResATC7048212.65-0.35

Kaminak GoldKAM15241402.22-0.35

Probe MinesPRB31990481.39-0.31

SilverCrest MnSVL12657622.47-0.28

Callinan RoyalCAA2316302.68-0.27

Verde PotashNPK1361016.57-0.27

Tasman MetalsTSM7860282.32-0.26

Newstrike CapNES5390742.85-0.25

Anfield NickelANF1102293.98-0.22

U.S. markets

Optimism about the U.S. economy sent the Dow Jones Industrial Average and the S&P 500 Index up 2.4% during the March 12–16 trading week, with the Dow closing at 13,232.62 points and the S&P 500 at 1,404.17. 

Upbeat economic news early in the week included remarks by the central bank that seemed to encourage greater risk-taking. The Federal Reserve confirmed it expects “moderate” growth over coming quarters and a gradual decline in the unemployment rate. JPMorgan Chase, meanwhile, announced that U.S. regulators had approved an increase in its quarterly dividend and stock buybacks after the bank passed balance-sheet stress tests. 

Data also showed that U.S. retail sales in February posted their biggest gains in five months despite higher gasoline prices, and the U.S. Department of Labor reported first-time claims for unemployment benefits dropped by 14,000 to 351,000 during the previous week, returning to a four-year low.

Cliffs Natural Resources led the advance with a 12.5% gain, or US$8.04 per share to US$72.03. Its board approved a 123% increase in the quarterly dividend to 62.5¢ from the previous 28¢ quarterly rate, explaining that the increase “reinforces Cliffs’ strong outlook for cash generation and commitment to using disciplined capital allocation to drive total shareholder return (TSR).” At its new annualized rate, Cliffs’ dividend represents a 3.9% yield based on the company’s closing price of US$64.91 per share on the New York Stock Exchange on March 13, placing Cliffs’ yield at the top of its metals and mining peer group and near the top 10% of companies on the S&P 500 Index, and increasing Cliffs’ dividend payout ratio to over 20% of 2011 net earnings. 

Energy and potash companies rose on speculation that U.S. economic growth would accelerate. Peabody Energy jumped US$2.05 per share to close the week at US$33.25 on no news, Agrium climbed US$2.83 to finish at US$86.07, Mosaic grew US$1.98 to US$57.51, Potash Corp. of Saskatchewan gained US$1.89 to US$45.91 and Intrepid Potash increased US$1.23 to US$24.76.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA14787210.629.8010.54+0.73

Freeport McMo*FCX10507539.3937.7538.56-0.22

Alpha Nat Res*ANR6331517.7815.6017.36+0.93

Barrick Gold*ABX6216246.0142.7243.95-1.86

Kinross Gold*KGC5905711.079.719.97-1.09

Arch Coal*ACI5646612.7511.2512.40+0.32

Newmont Mng*NEM5321256.9053.1953.75-2.78

Potash C Sask*POT4497546.2042.1545.91+1.89

Peabody Enrgy*BTU4482533.7829.7833.25+2.05

Hecla Mining*HL420215.034.524.53-0.41

U.S. greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Infrastrc Mat*IFAM150.060.060.06+50.0

Fischer-W Gld*FWGO17240.060.030.05+25.0

Canarc Res*CRCUF130.120.100.11+22.2

OM Group*OMG273128.5024.4128.23+13.3

Lake Vict Mng*LVCA180.120.090.09+12.5

Cliffs Nat Rs*CLF2758472.6463.2772.03+12.5

PolyMet Mng*PLM10811.331.141.32+10.0

Patriot Coal*PCX73857.296.167.17+9.8

Xtra-Gold Res*XTGR1401.381.271.38+8.6

Alcoa*AA14787210.629.8010.54+7.4

Keegan Res*KGN1054.724.004.00-15.2

Midway Gold*MDW5721.701.421.43-14.8

Extorre Gold*XG5097.686.586.62-14.4

Habanero Res*HBNRF330.060.050.06-14.2

Minco Gold*MGH3140.780.660.67-14.1

NovaGold Res*NG255208.046.917.02-12.4

Geovic Mng*GVCM1310.170.140.14-12.5

Nevsun Res*NSU83443.923.213.39-12.4

Almaden Mnls*AAU9012.932.512.54-12.1

America West*AWSR21380.250.190.22-12.0

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Cliffs Nat Rs*CLF2758416772.03+8.04

OM Group*OMG273131628.23+3.33

Agrium*AGU114558986.07+2.83

Rio Tinto*RIO360485656.82+2.15

Peabody Enrgy*BTU4482547833.25+2.05

Mosaic*MOS2078297957.51+1.98

Potash C Sask*POT4497519345.91+1.89

Soc Quim&M Ch*SQM194680359.07+1.41

Intrepid Pots*IPI97709724.76+1.23

BHP Billi-BBL*BBL508162764.24+1.11

Randgold Res*GOLD5958489101.49-10.92

Alliance Rs P*ARLP75657166.69-4.04

Royal Gold*RGLD405593063.57-3.40

Goldcorp*GG3874314244.09-3.15

Allied Nevada*ANV132335631.54-2.87

Newmont Mng*NEM5321176753.75-2.78

Agnico-Eagle*AEM1713727533.79-2.57

Franco-Nevada*FNV101424141.39-2.41

Pan Am Silver*PAAS1436196921.
29-2.35

Silver Wheatn*SLW2766926033.18-2.31