Toronto Stock Exchange
Toronto’s resource-heavy index reflected a lacklustre week for traders, as upbeat economic data from the U.S. failed to propel the markets.
The S&P/TSX Composite Index lost nearly a percent, or 115.7 points, to end at 12,300.30. The U.S. government reported the country’s economy is expanding at a rate of 2% annually, up from 1.3% in the second quarter. While the growth is better than expected, concerns remain that it may do little to lower the unemployment rate.
During the week, the S&P/TSX Global Gold Index slipped nearly 2 points to 336.4, as the spot price of gold fell US$9.40 per oz. to US$1,711.10. The S&P/TSX Capped Diversified Metals & Mining Index dropped 13.1 points to 921.64.
Agnico-Eagle Mines was one of the few gold miners to shine. It topped the week’s largest value-gainer list, advancing $3.12 per share to $55.53 after posting record quarterly earnings of US$106.3 million, or 62¢ per share, up from a net loss of US$81.6 million, or negative 48¢ per share a year ago.
It produced 286,971 payable oz. gold at a cash cost of US$556 per oz., helped by strong performances at its Meadowbank and Kittila gold mines in Nunavut and Finland. As a result, Agnico has lifted its 2012 production guidance to 1.02 million oz. gold, up from 975,000 oz. gold.
Global base-metal miner Inmet Mining added $1.46 to end at $50.45 apiece after sweetening a $112-million bid for its Panamanian neighbour Petaquilla Minerals by 25%, after the junior rejected the initial offer tabled in early September. Inmet, which is developing the Cobre Panama project in Panama, had set a deadline of Nov. 5 to complete the deal. But on Oct. 29, Petaquilla’s board unanimously rejected the revised hostile offer, saying it doesn’t reflect the company’s current value or growth prospects, virtually erasing the gains Inmet made in the previous week.
Mexico-focused Torex Gold was the period’s most actively traded stock, with 19.3 million shares changing hands, closing up 6¢ at $2 per share after completing the previously announced bought-deal financing. A total of 190 million units were issued at $2 apiece for proceeds of $380 million, which included a partial exercise of the over-allotment option for 15 million units. Each unit comprises a share and a quarter warrant, where a full warrant allows a holder to buy a Torex share at $2.65 until Oct. 23, 2013. The company will use the proceeds to develop its Morelos gold project in Mexico.
Canada’s second-largest gold producer, Goldcorp, saw heavy trading after posting a record quarterly revenue of US$1.5 billion, and adjusted earnings of US$440 million, or 54¢ share, up from a consensus of 46¢ a share. Goldcorp gained 68¢ to finish at $43.73 on 15.8 million shares traded.
TSX most active issues
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Torex Gold | TXG | 19277 | 2.05 | 1.9 | 2 | + | 0.06 |
| Goldcorp | G | 15831 | 44.14 | 40.78 | 43.73 | + | 0.68 |
| First Nickel | FNI | 15398 | 0.09 | 0.05 | 0.08 | + | 0.02 |
| Lundin Mng | LUN | 15324 | 5.54 | 5.15 | 5.21 | – | 0.15 |
| B2Gold | BTO | 14923 | 4.16 | 3.77 | 4.14 | + | 0.24 |
| Barrick Gold | ABX | 14864 | 39.5 | 38.02 | 39.12 | + | 0.57 |
| Kinross Gold | K | 13063 | 10.2 | 9.57 | 9.62 | – | 0.43 |
| Teck Res B | TCKB | 12732 | 32.05 | 30.17 | 31.04 | – | 0.41 |
| Eldorado Gold | ELD | 10291 | 14.44 | 13.75 | 13.91 | – | 0.35 |
| Petaquilla Mnl | PTQ | 8670 | 0.63 | 0.56 | 0.62 | + | 0.03 |
TSX greatest percentage change
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Redzone Res | REZ | 146 | 0.17 | 0.12 | 0.17 | + | 43.4 |
| Cline Mng | CMK | 4657 | 0.24 | 0.17 | 0.23 | + | 35.2 |
| Liberty Silver | LSL | 1658 | 1.33 | 0.49 | 1.31 | + | 35 |
| Peregrine Diam | PGD | 1143 | 0.5 | 0.35 | 0.49 | + | 31 |
| Eco Oro Mnls | EOM | 1819 | 1.38 | 1.1 | 1.31 | + | 29.7 |
| Mega Uranium | MGA | 4426 | 0.2 | 0.14 | 0.16 | + | 28 |
| First Nickel | FNI | 15398 | 0.09 | 0.05 | 0.08 | + | 25 |
| Cobriza Mtls | CZA | 88 | 0.1 | 0.08 | 0.1 | + | 25 |
| Polar Star Mng | PSR | 197 | 0.17 | 0.15 | 0.17 | + | 21.4 |
| Lipari Energy | LIP | 74 | 0.25 | 0.21 | 0.25 | + | 19 |
| Malaga | MLG | 4303 | 0.07 | 0.04 | 0.05 | – | 40 |
| Velocity Minls | VLC | 125 | 0.05 | 0.01 | 0.03 | – | 33.3 |
| Mariana Res | MRY | 24 | 0.1 | 0.09 | 0.09 | – | 29.1 |
| Black Iron | BKI | 253 | 0.23 | 0.16 | 0.16 | – | 20 |
| Inspiration Mg | ISM | 112 | 0.1 | 0.1 | 0.1 | – | 16.6 |
| Northcliff Res | NCF | 96 | 0.38 | 0.34 | 0.35 | – | 16.6 |
| Formation Mtls | FCO | 1065 | 0.29 | 0.23 | 0.24 | – | 15.7 |
| Curis Res | CUV | 124 | 0.79 | 0.6 | 0.65 | – | 15.5 |
| Olympus Pacif | OYM | 656 | 0.19 | 0.17 | 0.17 | – | 15 |
| Geovic Mng | GMC | 132 | 0.1 | 0.09 | 0.09 | – | 14.2 |
TSX greatest value change
| Week | |||||
| Change | Close | Change | |||
| Agnico-Eagle | AEM | 3522149 | 55.53 | + | 3.12 |
| Inmet Mining | IMN | 1660153 | 50.45 | + | 1.46 |
| Coeur d Alene | CDM | 90765 | 30.22 | + | 1.15 |
| Alamos Gold | AGI | 1731620 | 19.56 | + | 1.08 |
| Mag Silver | MAG | 695993 | 12.24 | + | 1.05 |
| Detour Gold | DGC | 1916647 | 27.72 | + | 0.86 |
| Harry Winston | HW | 805862 | 14.07 | + | 0.86 |
| Goldcorp | G | 15831382 | 43.73 | + | 0.68 |
| Russell Metals | RUS | 1207974 | 27.87 | + | 0.6 |
| Argonaut Gold | AR | 3373731 | 10.43 | + | 0.57 |
| Allied Nevada | ANV | 1179783 | 36.5 | – | 2.79 |
| Walter Energy | WLT | 10789 | 35.85 | – | 2.51 |
| Royal Gold | RGL | 24866 | 84.8 | – | 1.26 |
| Tahoe Res | THO | 1215206 | 19.71 | – | 1.12 |
| Newmont Mng | NMC | 15097 | 54.21 | – | 1.09 |
| Seabridge Gold | SEA | 67144 | 16.98 | – | 0.87 |
| Alacer Gold | ASR | 5774611 | 5.41 | – | 0.71 |
| Centerra Gold | CG | 2764729 | 10.68 | – | 0.65 |
| Kirkland Lk Gd | KGI | 1437019 | 9.13 | – | 0.64 |
| Major Drilling | MDI | 1299830 | 10.15 | – | 0.6 |
TSX Venture Exchange
During the trading session, the S&P/TSX Venture Composite Index dropped 14.78 points, or 1.1%, before closing the week at 1,300.84 points.
Promising third-quarter growth figures from the U.S. were overshadowed by disappointment in earnings amongst major corporations like General Electric and 3M. The Canadian dollar finished down 0.41¢ at US100.2¢, while gold prices dropped US$9.40 per oz., en route to a US$1,711.10 weekly close. Oil prices rose slightly on the back of stronger growth in the U.S., with December crude contracts jumping 23¢ on the New York Mercantile Exchange before closing at US$86.28 per barrel.
On Oct. 24, Anfield Nickel announced results from a prefeasibility study on its Mayaniquel nickel project in northeastern Guatemala. The company’s shares subsequently leapt 50¢ during the week before closing at $3.80 per share.
Anfield’s study bumps average projected annual production to 36,500 tonnes nickel over the mine’s life by adding a second rotary-kiln furnace unit in the fifth year. The company notes that higher-grading nickel in its start-up pit would see head grades at 1.86% nickel over the first three years of operation.
According to the study, Mayaniquel will cost US$946 million in capital expenditures and carry a net present value of US$1.38 billion at an 8% discount rate with an internal rate of return of 19.9%, compared with an NPV of US$605 million and an IRR of 14.1% in a 2011 preliminary economic assessment. The company’s base case assumes a long-term nickel price of US$8.50 per lb., including an US18¢ per lb. contained iron credit. The project hosts total proven and probable reserves of 69.9 million tonnes grading 1.41% nickel.
Toronto-based Kennady Diamonds dropped 37¢, or 23%, en route to a $1.23 close. On Oct. 22, the company reported caustic fusion results for samples taken from its Faraday, Faraday South and Kelvin kimberlites at its Kennady North diamond project in the Northwest Territories. Combined samples weighed in at 394 kilograms and returned 89 macro diamonds and 1,800 micro diamonds. Macro-diamond weight averaged 0.76 carat. The company is planning to begin a 5,000-metre drill program at the site in March, and Kennady expects to have enough data for a maiden resource following its winter program. On Oct. 26, Kennady announced a US$3-million non-brokered private placement. The company issued $300,000 in flow-through shares at $1.45 per share, and $2.7 million in non-flow-through stock at a price of $1.15 per share. Proceeds are to fund upcoming drilling at Kennady North.
TSX-V most active issues
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Galway Res | GWY | 15937 | 2.24 | 2.16 | 2.23 | + | 0.08 |
| Hana Mng | HMG | 10438 | 0.82 | 0.45 | 0.79 | + | 0.34 |
| Silver Spruce | SSE | 9663 | 0.04 | 0.02 | 0.02 | – | 0.03 |
| Canaco Res | CAN | 7669 | 0.43 | 0.34 | 0.42 | + | 0.05 |
| Aurcana Corp | AUN | 6701 | 1.06 | 1 | 1.04 | + | 0.01 |
| Arcus Dev Grp | ADG | 6062 | 0.06 | 0.05 | 0.05 | – | 0.03 |
| Sandstorm Mt&E | SND | 5731 | 0.49 | 0.45 | 0.49 | + | 0.03 |
| Ditem Explor | DIT | 5302 | 0.03 | 0.02 | 0.03 | 0 | |
| GoldQuest Mng | GQC | 5210 | 0.95 | 0.77 | 0.87 | + | 0.01 |
| Rockcliff Res | RCR | 4039 | 0.05 | 0.04 | 0.05 | + | 0.02 |
| Malaga | MLG | 4303 | 0.07 | 0.04 | 0.05 | – | 40 |
| Velocity Minls | VLC | 125 | 0.05 | 0.01 | 0.03 | – | 33.3 |
| Mariana Res | MRY | 24 | 0.1 | 0.09 | 0.09 | – | 29.1 |
| Black Iron | BKI | 253 | 0.23 | 0.16 | 0.16 | – | 20 |
| Inspiration Mg | ISM | 112 | 0.1 | 0.1 | 0.1 | – | 16.6 |
| Northcliff Res | NCF | 96 | 0.38 | 0.34 | 0.35 | – | 16.6 |
| Formation Mtls | FCO | 1065 | 0.29 | 0.23 | 0.24 | – | 15.7 |
| Curis Res | CUV | 124 | 0.79 | 0.6 | 0.65 | – | 15.5 |
| Olympus Pacif | OYM | 656 | 0.19 | 0.17 | 0.17 | – | 15 |
| Geovic Mng | GMC | 132 | 0.1 | 0.09 | 0.09 | – | 14.2 |
TSX-V greatest percentage change
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Stakeholdr Gld | SRC | 609 | 0.06 | 0.03 | 0.06 | + | 140 |
| La Quinta Res | LAQ | 139 | 0.01 | 0.01 | 0.01 | + | 100 |
| Golconda Res | GA | 517 | 0.07 | 0.06 | 0.07 | + | 85.7 |
| Tri Origin Exp | TOE | 456 | 0.1 | 0.05 | 0.1 | + | 81.8 |
| Hana Mng | HMG | 10438 | 0.82 | 0.45 | 0.79 | + | 73.6 |
| China Mnls Mng | CMV | 314 | 0.05 | 0.03 | 0.05 | + | 66.6 |
| Rocmec Mining | RMI | 910 | 0.2 | 0.09 | 0.17 | + | 65 |
| Bluestone Res | BSR | 177 | 0.29 | 0.14 | 0.29 | + | 61.1 |
| REBgold | RBG | 14 | 0.13 | 0.1 | 0.12 | + | 60 |
| Gold Port Res | GPO | 413 | 0.06 | 0.04 | 0.06 | + | 57.1 |
| Stone Res | SRH | 537 | 0.01 | 0.01 | 0.01 | – | 66.6 |
| Silver Spruce | SSE | 9663 | 0.04 | 0.02 | 0.02 | – | 55.5 |
| Sheltered Oak | OAK | 31 | 0.01 | 0.01 | 0.01 | – | 50 |
| Shear Diamonds | SRM | 2737 | 0.07 | 0.04 | 0.04 | – | 50 |
| Cascade Res | CC | 30 | 0.01 | 0.01 | 0.01 | – | 50 |
| Santa Fe Metls | SFM | 722 | 0.02 | 0.01 | 0.01 | – | 50 |
| Duncan Park H | DPH | 481 | 0.04 | 0.02 | 0.02 | – | 50 |
| Q-Gold Res | QGR | 78 | 0.15 | 0.08 | 0.08 | – | 50 |
| Granite Ck Gld | GCX | 11 | 0.03 | 0.02 | 0.03 | – | 50 |
| Laurentian Glf | LGF | 1203 | 0.03 | 0.02 | 0.02 | – | 42.8 |
TSX-V greatest value change
| Week | |||||
| Change | Close | Change | |||
| Anfield Nickel | ANF | 184151 | 3.8 | + | 0.5 |
| Hana Mng | HMG | 10437990 | 0.79 | + | 0.34 |
| Athabasca Mnls | ABM | 1532090 | 1.85 | + | 0.3 |
| Chesapeake Gld | CKG | 41767 | 9.44 | + | 0.24 |
| Orko Silver | OK | 955348 | 1.59 | + | 0.21 |
| Sandstorm Gld | SSL | 1356450 | 13.66 | + | 0.18 |
| Santacruz Silv | SCZ | 770750 | 2.35 | + | 0.16 |
| Reservoir Mnls | RMC | 738351 | 3.21 | + | 0.16 |
| American Vanad | AVC | 579715 | 0.98 | + | 0.14 |
| Giyani Gold | WDG | 627965 | 1.27 | + | 0.14 |
| Kennady Diam | KDI | 162586 | 1.23 | – | 0.37 |
| Pac Booker Min | BKM | 66914 | 3.62 | – | 0.33 |
| Atacama Pac Gd | ATM | 420220 | 3.35 | – | 0.2 |
| Gold Reach Res | GRV | 148635 | 1.3 | – | 0.19 |
| Energold Drill | EGD | 104993 | 3.64 | – | 0.18 |
| Ascot Res | AOT | 291311 | 1.11 | – | 0.17 |
| EurOmax Res | EOX | 141239 | 1.05 | – | 0.17 |
| Dia Bras Expl | DIB | 32562 | 2.75 | – | 0.15 |
| New Oroperu Rs | ORO | 46300 | 0.46 | – | 0.15 |
| Georgetown Cap | GET | 20000 | 0.32 | – | 0.13 |
U.S. markets
Gross domestic product growth in the U.S. increased at a 2% annual rate in the third quarter, up from 1.3% in the second quarter. But earnings disappointments from U.S. multinationals, including Apple, worries about slowing global growth and uncertainty over the Nov. 6 presidential election ramped up risk aversion. The Dow Jones Industrial Average dropped 1.77%, or 236.30 points, to end the week at 13,107.21, while the S&P 500 Index fell 1.48%, or 21.25 points, to 1,411.94. The Philadelphia Gold and Silver Index lost 1.66%, to close at 182.72.
Cost-cutting measures at Arch Coal helped the company post better-than-expected earnings in the third quarter. Net income reached US$45.8 million, or US22¢ a share from July to September, up from US$8.9 million, or US4¢ per share in the year-earlier quarter. Revenue fell 9% to US$1.09 billion. The coal producer forecasts capital spending of about US$350 million in 2013, below its 2012 estimate of between US$410 million and US$430 million. Arch was the most actively traded stock of the week, and its shares rose US18¢ to close at US$8.09.
Peabody Energy climbed 9%, or US$2.33, to US$28.22 per share, after the coal miner reported that expanded margins in the U.S., record volumes and aggressive cost-control measures helped offset price declines in Australia in the third quarter. Peabody’s results for the quarter ended beat Wall Street expectations. The company posted a profit of US$122.9 million, or US46¢ per diluted share, compared with US$291.2 million, or US$1.04 per share, in the third quarter of 2011. Revenues rose to US$2.06 billion from US$1.98 billion in the year-earlier quarter. In other news, Reuters reported that the company expects to resume talks with the Mongolian government over acquiring a stake in the western Tsankhi block of Tavan Tolgoi early next year.
Shares of Cliffs Natural Resources plunged 17.9%, or US$7.96 a share, to finish the week at US$36.49 after the company posted a huge drop in profits on lower iron ore prices and higher costs. Third-quarter profit fell 85% to US$85.1 million, or US59¢ a share, compared with US$601.2 million, or US$4.15 a share, in the year-earlier quarter.
U.S. most active issues
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Arch Coal* | ACI | 136692 | 8.86 | 7.13 | 8.09 | + | 0.18 |
| Alpha Nat Res* | ANR | 120795 | 9.67 | 8.28 | 8.71 | – | 0.26 |
| Alcoa* | AA | 85673 | 9.15 | 8.63 | 8.65 | – | 0.36 |
| Freeport McMo* | FCX | 78116 | 41.2 | 38.66 | 39.07 | – | 2.11 |
| Peabody Enrgy* | BTU | 74155 | 29.71 | 27.2 | 28.22 | + | 2.33 |
| Cliffs Nat Rs* | CLF | 46329 | 45.82 | 36.02 | 36.49 | – | 7.96 |
| Kinross Gold* | KGC | 34777 | 10.26 | 9.59 | 9.64 | – | 0.46 |
| Barrick Gold* | ABX | 31808 | 39.68 | 39.18 | + | 0.4 | |
| Hecla Mining* | HL | 27015 | 6.67 | 6.28 | 6.47 | – | 0.04 |
| Goldcorp* | GG | 24892 | 44.25 | 41 | 43.74 | + | 0.45 |
U.S. greatest percentage change
| Volume | Week | ||||||
| (000s) | High | Low | Close | Change | |||
| Strata O&G* | SOIGF | 275 | 0.15 | 0.11 | 0.14 | + | 32 |
| Uranerz Energ* | URZ | 1913 | 1.72 | 1.5 | 1.67 | + | 9.8 |
| Peabody Enrgy* | BTU | 74155 | 29.71 | 27.2 | 28.22 | + | 9 |
| Mag Silver* | MVG | 99 | 12.31 | 11.24 | 12.26 | + | 8.4 |
| Fortuna Silvr* | FSM | 732 | 5.21 | 4.78 | 5.11 | + | 6.4 |
| OM Group* | OMG | 1767 | 21.39 | 19.45 | 20.76 | + | 6.2 |
| Harry Winston* | HWD | 669 | 14.35 | 13 | 14.11 | + | 5.8 |
| Agnico-Eagle* | AEM | 8170 | 56.75 | 51.6 | 55.63 | + | 5.6 |
| Crosshair Eny* | CXZ | 179 | 0.15 | 0.12 | 0.15 | + | 4.9 |
| Revett Mnls* | RVM | 172 | 3.68 | 3.3 | 3.6 | + | 4.9 |
| Gold Am Mng* | SILA | 276 | 0.02 | 0.02 | 0.02 | – | 32 |
| Grandview Gld* | GVGDF | 22 | 0.01 | 0.01 | 0.01 | – | 28.5 |
| El Capitan Pr* | ECPN | 1362 | 0.4 | 0.3 | 0.31 | – | 22.2 |
| Cliffs Nat Rs* | CLF | 46329 | 45.82 | 36.02 | 36.49 | – | 17.9 |
| Mines Managem* | MGN | 376 | 1.38 | 1.12 | 1.18 | – | 11.2 |
| Yanzhou Coal* | YZC | 1429 | 16.6 | 14.16 | 14.32 | – | 10.7 |
| NovaCopper* | NCQ | 845 | 2.6 | 2.23 | 2.3 | – | 9.8 |
| Dejour Enterp* | DEJ | 143 | 0.24 | 0.2 | 0.21 | – | 9.4 |
| Mechel* | MTL | 2889 | 7.23 | 6.39 | 6.41 | – | 8.1 |
| Santa Fe Gold* | SFEG | 637 | 0.34 | 0.28 | 0.28 | – | 8.2 |
U.S. greatest value change
| Week | |||||
| Change | Close | Change | |||
| Agnico-Eagle* | AEM | 8169622 | 55.63 | + | 2.96 |
| Peabody Enrgy* | BTU | 74154850 | 28.22 | + | 2.33 |
| Alliance Rs P* | ARLP | 378990 | 64.94 | + | 1.72 |
| OM Group* | OMG | 1767061 | 20.76 | + | 1.22 |
| Coeur d Alene* | CDE | 6957308 | 30.27 | + | 1.04 |
| Mag Silver* | MVG | 98926 | 12.26 | + | 0.95 |
| Harry Winston* | HWD | 668772 | 14.11 | + | 0.78 |
| Cabot Corp* | CBT | 3069210 | 35.34 | + | 0.75 |
| Pretium Res* | PVG | 604345 | 13.32 | + | 0.48 |
| Goldcorp* | GG | 24892389 | 43.74 | + | 0.45 |
| Cliffs Nat Rs* | CLF | 46329189 | 36.49 | – | 7.96 |
| Allied Nevada* | ANV | 765496 | 36.64 | – | 2.81 |
| Randgold Res* | GOLD | 2063001 | 117.98 | – | 2.57 |
| Walter Energy* | WLT | 3895665 | 35.9 | – | 2.37 |
| Freeport McMo* | FCX | 78115665 | 39.07 | – | 2.11 |
| Mesabi Trust* | MSB | 715562 | 26.86 | – | 2.07 |
| Yanzhou Coal* | YZC | 1429412 | 14.32 | – | 1.73 |
| Royal Gold* | RGLD | 5549098 | 84.85 | – | 1.73 |
| Newmont Mng* | NEM | 22761680 | 53.31 | – | 1.59 |
| Mosaic* | MOS | 12490297 | 52.78 | – | 1.19 |
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