Toronto Stock Exchange
While stagnant GDP growth fuelled talk of a double-dip recession, the TSX Composite Index showed resilience as it climbed 169 points for the Aug. 29 to Sept. 2 period, and finished up at 12,602.41 points.
Some of that strength came thanks to the gold miners, with the Global Gold Index moving up 17 points to 434.33 points. The upward momentum came as the price of gold recovered from the previous week’s drop. The yellow metal was up US$36 to US$1,876.90 per oz. as continued worries over U.S. job creation stoked fears south of the border.
The diversified miners in the Capped Metals & Mining Index also carved out a gain, albeit a more modest one than its gold-mining cousins. The index was up 26 points to 1,193.51, despite slightly lower prices for copper, nickel, tin, lead and zinc.
In a move to become the next intermediate gold producer, AuRico Gold made a friendly bid for Northgate Minerals. If the deal goes through, the new company would have five operating gold mines, with a sixth, Young-Davidson, targeting production in the first half of 2012. The hefty 45% premium offered to Northgate shareholders trumped a rival bid from Primero Mining, and resulted in Primero dropping out of the bidding. The deal could see AuRico produce as much as 730,000 oz. gold by 2013
if consummated. Word of the deal sent Northgate shares up 35% to $4.17 for the period, while AuRico shares fell 13% to finish at $11.96. Primero shares also fell 13% during the period and wound up trading for $3.60.
Polar Star Mining told the market that restarted gold and copper concentrate production at its Chepica mine in Chile is on time and on budget. The news helped send the company’s shares 23% higher to 58¢. Mining is set to start in mid-September at 200 tonnes per day with production averaging 1,000 oz. gold per month. The company says operating costs will be US$500 per oz. and net free cash flow from the mine should come in at US$1 million per month.
CGA Mining managed a substantial gain as well, as its share price grew by 21% to finish at $3.05. The uptick came after the Australian-based company released financial results highlighted by a 51% increase in revenues, a 70% increase in gross profit and a 307% increase in net profit after tax. The impressive results came on the back of its Masbate gold project in the Philippines. And while results from Masbate were good, CGA wants more and plans to overhaul the facility, which was designed to handle 4 million tonnes of ore per year.
CGA is spending US$15 million to upsize throughput to 6.5 million tonnes per year. Once completed, the larger mill is forecasted to produce over 200,000 oz. gold per year.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Northgate MnlsNGX602864.323.864.17+1.07
New GoldNGD3413613.5012.8413.37+0.10
Kinross GoldK2396217.4616.5917.34-0.01
Eastern PlatinELR200670.790.690.70-0.08
Uranium OneUUU190892.852.432.43-0.30
Yamana GoldYRI1837416.7315.1216.58+0.88
Lundin MngLUN182435.695.175.22+0.07
AuRico GoldAUQ1676112.2010.8811.96-1.76
Barrick GoldABX1555652.9948.5151.97+2.03
Hathor ExplHAT133994.213.874.13+0.25
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
American BonanBZA104400.650.430.64+45.4
Northgate MnlsNGX602864.323.864.17+34.5
Red Cresc ResRCB680.540.400.44+29.4
Minco SilverMSV5814.083.083.85+25.0
Diamond FieldsDFI500.250.220.25+25.0
Rio Verde MnlsRVD5530.430.340.42+23.5
Polar Star MngPSR3380.700.490.58+23.4
EMC MetalsEMC6390.170.130.17+21.4
CGA MiningCGA76633.082.473.05+21.0
Corvus GoldKOR5250.660.560.65+20.3
Yorbeau Res AYRBA4280.230.200.20-16.6
United SilverUSC9400.570.510.51-16.3
Mundoro CapMUN920.450.420.42-16.0
Mediterrn ResMNR15200.170.130.16-15.7
First UraniumFIU6370.440.380.38-13.6
Evolving GoldEVG12650.600.500.52-13.3
Primero MngP50803.713.383.60-13.0
NoventaNTA2620.450.400.40-13.0
WGI Heavy MnlWG10510.500.400.40-13.0
AuRico GoldAUQ1676112.2010.8811.96-12.8
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Royal GoldRGL3508777.65+4.65
Inmet MiningIMN158601062.25+4.64
AgriumAGU426011785.56+3.63
Labdr I-Ore RoLIF_U66103535.88+3.18
Central Gold-TGTU_U1796372.50+2.81
Agnico-EagleAEM401945870.01+2.80
GoldcorpG1274029853.76+2.78
Detour GoldDGC241896937.12+2.56
Silver Std ResSSO90644029.64+2.56
Newmont MngNMC4047463.36+2.36
Walter EnergyWLT1810275.90-1.83
AuRico GoldAUQ1676109111.96-1.76
Horizns G BearHGD38252267.38-0.66
Primero MngP50804913.60-0.54
Silvercorp MtlSVM105729937.43-0.48
Labdr Iron MnsLIM8154088.10-0.45
MigaoMGO20388253.43-0.42
Extorre Gold MXG13690289.76-0.36
HudBay MinlsHBM293855512.12-0.32
Uranium OneUUU190886992.43-0.30
TSX Venture Exchange
The S&P/TSX Venture Composite Index climbed 58 points in the Aug. 29 to Sept. 2 period on four days of gains to end at 1,810.36 points. Volume perked up somewhat from the week prior with an average of 71 million shares traded daily.
Chesapeake Gold had the highest outright gain of the week, climbing $2.24 for an all-time closing high of $14.05 after hitting a brief all-time trading high of $15.25. The company is advancing its Metates gold-silver-zinc project in Mexico with a 25,000 metres of drilling and a prefeasibility study due in late 2011. With measured and indicated resources of 17.2 million oz. gold, 467 million oz. silver and 3.4 billion lbs. zinc, Metates is one of the world’s largest undeveloped disseminated gold and silver deposits.
The next biggest value gainers had significantly smaller gains than Chesapeake, with Gold Canyon Resources coming in third on a 56¢ rise to $3.24. The company released more results from the Portage zone at its Springpole project, with hole 11-71 hitting 286 metres grading 1.03 grams gold per tonne from 149 metres depth. Oriented at 220° true north at a -60° angle, hole 11-71 indicates that earlier drilling on the Portage zone hit the low-grade southwest fringe of the deposit, which dips northeast and is wider than previously thought.
Belo Sun Mining climbed 35¢ to $1.48 on 7.8 million shares traded as it continues to advance its Volta Grande gold project in Brazil. The company reported it is fully financed to complete 90,000 metres of drilling using the 11 drills on-site. It has contracted out a feasibility study, and has expanded its land package to 1,305 sq. km. Belo also released more drill results from the project, including 31 metres grading 11.14 grams gold in a new structurally controlled zone in the eastern part of the Grota Seca deposit.
Animas Resources got a boost after announcing a major shareholder was doubling his investment in the company. Mexican investor Ernesto Echavarria is buying $3.4 million worth of Animas shares at 20¢ to increase his holdings to 40% of the company. The company has also announced that John Wilson has been appointed president of Animas and that the company has launched a pref
easibility program on its Santa Gertrudis gold project in northern Mexico. Animas’ share price climbed 14¢, or 74%, to 34¢ on 1.5 million shares traded.
Goldex Resources was the most active stock with 10.3 million shares traded. The latest burst of activity follows multiple spurts of trading in recent weeks, including 11.3 million shares traded on July 25 and 10.6 million shares on August 17. The company only released its management discussion and analysis report during the period, though it recently reported high-grade gold hits from its El Pato project in Guatemala. The company’s share price rose 2¢ to 10¢, with 97.5 million shares issued.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Goldex ResGDX102780.110.080.10+0.01
Diamond FrankDOD80900.120.060.08+0.01
Belo Sun MngBSX77471.491.071.48+0.35
Sandstorm ResSSL75551.581.361.43+0.07
Northern Gld MNGM60730.430.350.43+0.08
Metanor ResMTO57300.430.340.39+0.05
Prophecy CoalPCY57020.770.690.69-0.00
Fission EnergyFIS52880.730.650.70+0.08
Allana ResAAA52631.471.321.330.00
El Nino VentELN50830.060.050.05+0.01
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
SG Spirit GoldSG1410.250.120.25+127.2
Sunset Cove MgSSM38040.110.060.10+100.0
Luiri GoldLGL820.150.060.15+87.5
Prominex ResPXR1220.070.040.07+75.0
Animas ResANI15030.350.190.34+70.0
Softrock MnrlSFT36760.130.080.08+60.0
Altair VentAVX7960.080.050.08+60.0
Alder ResALR9790.170.100.16+60.0
Creso ExplCXT22280.160.090.14+55.5
Zenyatta VentZEN1510.320.230.29+52.6
Expedition MngEXU8460.240.140.16-36.0
Crescent ResCRC3400.170.110.11-35.2
Thunder Mtn GdTHM400.150.130.13-35.0
NordexNXX170.410.310.31-31.1
Bison Gold ResBGE3090.260.190.22-26.6
Jasper MngJSP850.250.160.17-26.0
Lakeland ResLK3150.140.100.12-25.0
Royal CoalRDA47080.130.090.09-25.0
Arcturus ResAZN2930.040.030.03-25.0
Celeste CopperC3410.170.120.12-25.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Chesapeake GldCKG9055914.05+2.24
Rainy River RsRR45659911.00+0.58
Gold CanyonGCU21514083.24+0.56
Alderon ResADV17302753.41+0.51
Macarthur MnlMMS1613751.94+0.48
Lumina CopperLCC1343426.90+0.45
Trelawney M&ExTRR14368664.34+0.41
Avino SilverASM3069482.89+0.39
Dia Bras ExplDIB1761752.94+0.39
Quest Rare MnlQRM8832694.55+0.38
Pac Booker MinBKM111698.50-0.50
Prophecy PlatNKL16139355.03-0.42
New Pac MetalsNUX2941851.80-0.30
Cayden ResCYD1730732.38-0.22
Atac ResATC10389367.38-0.20
Southern ArcSA6598431.01-0.20
Canaco ResCAN9550883.00-0.15
NordexNXX170000.31-0.14
Argentex MngATX5245560.79-0.11
Bralorne GoldBPM145001.13-0.11
U.S. markets
U.S. equities didn’t have a great week. The Dow Jones Industrial Average slipped 44.28 points, or 0.4%, to finish the Aug. 29 to Sept. 2 trading week at 11,240.26, while the S&P 500 Index lost 2.83 points, or 0.2%, to close at 1,173.97. The Philadelphia Gold and Silver Index jumped 6.85 points, or 3.2%, to 222.79. The price of gold rose 3% from its New York close of US$1,829.10 per oz. on Aug. 26, to its close on Sept. 2 of US$1,884.20 per oz.
Shares of Cornerstone Capital Resources surged 41% to close at 24¢ apiece following reports of 1.34% copper and 58 grams silver per tonne over 20 metres in trenching at its La Fortuna copper-silver project in Chile, 100 km north of Santiago. Significant copper and silver assay results have been obtained in the northern two-thirds of the property, with seven prospective mineralized zones identified over 18 sq. km. La Fortuna is partly contiguous with the Cerro Negro copper-silver mine, a manto-type deposit immediately to the west, which combines open-pit and underground operations and produces copper cathodes through heap-leach SX-EW processing, and copper-silver concentrates via flotation.
Royal Gold added US$4.14 per share to close the week at US$78.97. The royalty company announced a fourth-quarter dividend of 11¢ per common share on Aug. 30. The dividend is payable on Oct. 14 to shareholders of record at the close of business on Sept. 30. Shares of Goldcorp, meanwhile, ended the week at US$54.71 per share, a gain of US$2.74. On Sept. 1, Goldcorp, Xstrata Copper and Yamana Gold finalized a four-year option agreement on Agua Rica, a feasibility stage project in Argentina. The agreement provides Minera Alumbrera the exclusive option to acquire Yamana’s 100% interest in the project. Minera Alumbrera is a joint-venture operation between Xstrata Copper (50%), Goldcorp (37.5%) and Yamana (12.5%) that currently operates the Alumbrera mine.
AuRico Gold‘s $1.46-billion takeover offer for Northgate Minerals sent the latter’s shares up 34.6%, or US$1.09, to close at US$4.24 per share. Shares of AuRico closed down US$1.78 at US$12.14.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA10822312.9311.9412.04+0.18
Freeport McMo*FCX7564348.6044.5444.94+0.41
Northgate Mnl*NXG639754.423.944.24+1.09
Kinross Gold*KGC4472917.7716.9817.59-0.04
Barrick Gold*ABX4301153.9849.6652.87+1.96
Potash C Sask*POT3888359.8456.1258.42+1.40
Newmont Mng*NEM3837464.6461.0264.47+2.30
Hecla Mining*HL344988.027.467.86+0.18
Alpha Nat Res*ANR3420935.1530.4330.89-2.38
Mosaic*MOS3089674.0067.8670.00+0.62
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Cornerstone C*CTNXF280.250.170.24+41.1
Northgate Mnl*NXG639754.423.944.24+34.6
Radius Gold*RDUFF1150.820.650.78+18.1
Avino Silver*ASM3763.002.472.94+16.6
Gold Am Mng*SILA5080.080.050.07+16.6
Entree Gold*EGI6342.031.681.93+15.5
Mines Managem*MGN6821.941.581.86+15.5
Richmont Mine*RIC421411.519.4011.22+14.4
Canarc Res*CRCUF2150.160.130.16+14.2
PolyMet Mng*PLM12981.721.421.64+13.8
Tri-Valley*TIV63100.300.190.20-28.5
Silver Dragon*SDRG13690.120.100.10-16.6
AuRico Gold*AUQ385812.3811.1112.14-12.7
Miranda Gold*MRDDF1370.500.410.42-10.6
Alpha Nat Res*ANR3420935.1530.4330.89-7.1
Lake Vict Mng*LVCA250.150.130.13-7.1
Silvercorp Mt*SVM69899.297.047.53-6.8
America West*AWSR510.900.620.70-6.6
Geovic Mng*GVCM1050.310.260.28-3.4
Bullion Monar*BULM1621.251.151.16-3.3
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Royal Gold*RGLD389620778.97+4.14
Agrium*AGU183159386.83+3.41
Alliance Rs P*ARLP46088072.95+3.37
Soc Quim&M Ch*SQM317716961.96+3.01
Goldcorp*GG3031085454.71+2.74
Silver Std Re*SSRI443714930.09+2.65
Agnico-E
agle*AEM832521971.10+2.60
Newmont Mng*NEM3837373464.47+2.30
Barrick Gold*ABX4301054752.87+1.96
Cliffs Nat Rs*CLF1751043378.49+1.89
Alpha Nat Res*ANR3420868030.89-2.38
AuRico Gold*AUQ385783212.14-1.78
Walter Energy*WLT144428677.61-1.43
Peabody Enrgy*BTU2608091145.79-1.31
OM Group*OMG150486429.08-0.87
Compass Mnls*CMP37319273.10-0.61
Silvercorp Mt*SVM69890937.53-0.55
Alum Cp China*ACH98226016.37-0.48
Patriot Coal*PCX399346113.54-0.27
Natural Rs Pt*NRP22820128.36-0.23
Be the first to comment on "Market news"