Market news

Toronto Stock Exchange

It was a horrendous trading week for the Canadian markets as prices for gold and silver crashed.  

The TSX Composite Index dived 800.84 points to 11,462.87, as the spot price for gold plunged US$155.30 per oz. to US$1,657.20, while silver slid US$9.73 to US$30.93 an oz. The Global Gold Index tracked the movement of the yellow metal and dropped 33.21 points to 395.69. 

Gold miners were some of the most actively traded stocks, but all that trading didn’t help their share prices, as Barrick Gold dropped $4.79 to $47.73 apiece, Yamana Gold slid $1.63 to $14.15 and Kinross Gold lost $1.26 to $15.67, all on no news.  

Newmont Mining managed to buck the trend and was the week’s third largest value gainer. The company’s shares moved up 55¢ to close at $64.75 as it revised its gold price linked dividend policy. Under the new policy, the miner’s annual dividend could reach US$4.70 per share if the company’s average realized gold price is US$2,500 per oz. It also increased its quarterly dividend rates, providing an extra 7.5¢ per share when average realized gold price for the quarter exceeds US$1,700 per oz., and another 2.5¢ per share, for a total of 10¢ per share, when the average realized gold price for the quarter exceeds US$2,000 per oz. 

Lower prices for zinc, nickel, copper, aluminum, lead and cobalt affected the Capped Metals & Mining Index, as it slipped 259.5 points to settle at 871.33. 

Amid all the tumbling, Velocity Minerals emerged as the week’s biggest percentage gainer. The company moved 18.7% to close at 19¢ apiece on no news. However, on Sept. 14 it released further results from an ongoing geochemical soil survey on the 100 claims it holds in the Orogrande mining district in Idaho. To date, 482 of the 1,000 soil samples collected have been analyzed. Velocity says the survey indicates two separate anomalous gold trends, which are near the Friday and Monday faults that Premium Exploration has been targeting. 

Serabi Mining‘s shares jumped 15.3% to 30¢, also no news. The most recent news the Brazilian-focused gold explorer released was on Sept. 12, which contained a geophysical survey that showed the strike length of the Piaui gold discovery could extend more than 1.4 km. Initially, Piaui was estimated to have a 300-metre strike length. 

Strong drill results helped Eco Oro Minerals, formerly known as Greystar Resources, move up 15.3% to $1.95 apiece on 714,328 shares traded. On Sept. 20, the company reported 18 new holes completed at its Mongora target, which is located 3 km south of its Angostura gold deposit in northeastern Colombia. Highlights include: 16.15 grams gold and 75.5 grams silver per tonne over 2 metres; 15.31 grams gold and 6.51 grams silver over 5 metres; and 8.55 grams gold and 9.32 grams silver over 9 metres.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Kinross GoldK2819617.8715.2115.67-1.26

Lundin MngLUN275774.913.833.85-1.17

Barrick GoldABX2441255.1847.1147.73-4.79

Yamana GoldYRI2370117.0613.5114.15-1.63

First QuantumFM2294620.5513.5813.71-7.47

Teck BTCKB2166738.4230.5130.73-8.37

Eastern PlatinELR195570.760.640.69-0.05

GoldcorpG1891753.6346.2346.95-3.34

Potash Cp SaskPOT1860054.6647.0047.28-7.19

Lake Shore GldLSG185142.141.511.54-0.59

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Velocity MinlsVLC1980.200.170.19+18.7

Serabi MngSBI360.300.140.30+15.3

Eco Oro MnlsEOM7142.091.651.95+15.3

Horizns G BearHGD58908.976.718.62+14.4

Forsys MetalsFSY5300.600.500.55+10.0

Crystallex IntKRY73020.130.110.12+9.0

Powertech UranPWE2440.140.110.13+8.3

NoventaNTA370.410.380.41+7.8

Redzone ResREZ9340.280.240.28+7.6

Vena ResVEM4970.220.180.21+5.0

Polo ResPOL1750.100.040.05-61.5

Polaris MinlsPLS520.830.500.50-39.7

Keegan ResKGN80159.454.805.55-36.9

First QuantumFM2294620.5513.5813.71-35.2

Cline MngCMK120601.991.221.30-35.0

Champion MinlsCHM35861.340.890.89-34.5

Aeroquest IntlAQL4100.290.150.19-34.4

Mawson ResMAW5161.671.131.20-31.4

Grande Cache CGCE88437.054.904.94-31.3

Volta ResVTR28591.671.121.14-30.9

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Central Gold-TGTU_U3389068.50+1.73

Horizns G BearHGD58899138.62+1.09

Newmont MngNMC12206264.75+0.55

Eco Oro MnlsEOM7143281.95+0.26

Silvercorp MtlSVM84544376.91+0.10

Forsys MetalsFSY5304760.55+0.05

Serabi MngSBI360000.30+0.04

NoventaNTA365000.41+0.03

Velocity MinlsVLC1983950.19+0.03

Hathor ExplHAT77132224.07+0.02

Walter EnergyWLT3212866.43-14.07

Inmet MiningIMN171717749.59-11.66

AgriumAGU503666174.14-10.95

Teck ATCKA2178532.25-8.75

Teck BTCKB2166749230.73-8.37

First QuantumFM2294617013.71-7.47

Potash Cp SaskPOT1859955547.28-7.19

Silver WheatonSLW1735982533.14-6.36

Allied NevadaANV254903936.91-5.90

Franco-NevadaFNV444232838.80-5.46

TSX Venture Exchange

The S&P TSX Venture Exchange Index lost a dismal 216.77 points during the Sept. 19-23 period, falling to a 13-month low at 1,534.18 points. The index declined on all five days as European debt worries and slower-than-expected economic growth pounded equity markets around the world. Trading volume rose sharply to 100.7 million shares traded daily, up from 85 million shares traded daily over the past two months.

Grayd Resource was the most active stock with 33.03 million shares traded, and also its biggest percentage gainer with a 33% rise. Agnico-Eagle Mines has made a friendly $275-million takeover bid for the company and its two Mexican gold projects, both located in Sonora’s Mulatos gold belt 70 km northwest of Agnico’s Pinos Altos gold mine. Agnico will pay $2.80 in cash, or 0.04 of a share and 5¢, for Grayd’s flagship La India project, which boasts a measured and indicated resource of 760,000 oz. gold from 26.8 million tonnes grading 0.88 gram gold per tonne, plus 506,000 inferred oz. from 19.7 million tonnes at 0.8 gram gold. The deal also includes Grayd’s early-stage Tarachi gold-porphyry project 10 km north of La India.

Chesapeake Gold saw the biggest value gain over the period, climbing $2.19 to $17.44 on light volume typical for Chesapeake. The company has released pilot-plant-scale metallurgical testwork for its large Metates gold-silver project in Mexico’s Durango state, confirming average 90% recovery rates for gold, 77% for silver and 81% for zinc. Chesapeake is completing a prefeasibility study for the project, which it bills as one of the world’s largest undeveloped gold-silver deposits. It contains measured and indicated resources totalling 17.2 million oz. gold, 467 million oz. silver and 3.4 billion lbs. zinc.

Yukon gold explorers fared the worst in terms of value losses. Atac Resources shed another $1.72 to $4.42 on no news. It has dropped 58% from its year-high of $10.34 in late July. Kaminak Gold and Prophecy Platinum suffered similar fates, falling $1.13 and $1.33, respectively, to $2.88 and $2.81.

Tawsho Mining saw the biggest percentage drop, down 40%, or from 50¢ to 29¢. The company has drill results back from its Whisker Valley gold project in northern Newfoundland. Seven of 12 holes intersected narrow quartz veins bearing gold mineralization, with the best returning
0.5 metre grading 13.99 grams gold. 

NMC Resource meanwhile gained 29% after revealing a state-owned South Korean company, Korea Resources, is interested in its Boss Mountain molybdenum-copper project in B.C. NMC’s shares rose to 58¢ from 45¢. The Koreans will conduct an assessment on Boss Mountain over the next few months as part of a government-sponsored research program. Boss Mountain last saw production from Noranda in 1983. 

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Grayd ResGYD330312.852.572.61+0.66

Orbite Expl AORTA127442.351.771.91-0.06

IBC Adv AlloysIB103820.190.160.19+0.02

Rusoro MngRML96320.150.090.13+0.02

Victoria GoldVIT78540.550.380.41-0.13

Rio Alto MngRIO77383.262.682.73-0.17

Luna GoldLGC76300.590.470.48-0.08

Sandstorm ResSSL75591.361.061.09-0.24

Great WesternGWG66560.880.680.69-0.13

US SilverUSA56860.700.510.55-0.14

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Nanika ResNKA8030.050.030.03+50.0

Cascadia ResCCR810.160.090.16+45.4

Odin MiningODN100.170.170.17+41.6

Strait GoldSRD12860.090.060.07+40.0

Lakeland ResLK21470.170.120.14+40.0

Grayd ResGYD330312.852.572.61+33.8

Actus MnlsAAC2410.080.070.08+33.3

Altair VentAVX3580.050.040.04+33.3

Emgold MngEMR9350.130.090.12+33.3

NMC ResNRC3170.600.450.58+28.8

Tawsho MngTAW3550.500.260.29-42.0

Taku GoldTAK7630.150.090.09-40.0

Moss Lake GldMOK710.260.200.20-37.5

FDG MngFDG2300.300.220.22-37.1

BE ResBER32580.260.150.17-37.0

McVicar ResMCV5500.480.330.33-36.5

Uranium ValleyVZZ240.200.160.16-36.0

Providence CapPV1760.350.150.22-35.2

Altiplano MnlsAPN200.190.190.19-34.4

Matamec ExplMAT14620.390.250.25-34.2

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Chesapeake GldCKG15565417.44+2.19

Pac Booker MinBKM363398.63+0.94

Grayd ResGYD330307672.61+0.66

NMC ResNRC3168370.58+0.13

Gunpoint ExplGUN955501.00+0.10

Defiance CaptlDEF553000.50+0.10

Palladon VentPLL228351.64+0.08

Probe MinesPRB8557831.60+0.06

Fission EnergyFIS28143500.72+0.06

Cascadia ResCCR807330.16+0.05

Atac ResATC51977014.42-1.72

Rainy River RsRR7056148.35-1.55

Prophecy PlatNKL7585352.81-1.33

Quest Rare MnlQRM24412102.58-1.31

Kaminak GoldKAM27360742.88-1.13

Lumina CopperLCC3122175.91-1.09

Tasman MetalsTSM14116242.22-0.99

Trelawney M&ExTRR47532283.85-0.91

Alderon ResADV27028402.66-0.90

Canaco ResCAN40338572.24-0.86

U.S. Markets

It was a disastrous week on Wall Street as mounting fears about the possibility of a double-dip recession pummelled U.S. equities. Continued anxiety over debt in Europe and sobering comments from the U.S. Federal Reserve contributed to the anxiety. On Sept. 21 the central bank warned of significant headwinds to the already fragile U.S. economy, and said it would sell US$400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt. 

The Dow Jones Industrial Average  plummeted 6.4%, or 737.61 points, to 10,771.48 during the Sept. 19-23 trading week, while the S&P 500 Index lost 6.5%, or 79.58 points, to finish at 1,136.43. The New York spot price for gold sank US$155.30, ending the Sept. 19-23 trading week at US$1,657.20 per oz., and the Philadelphia Gold and Silver Index dropped 13.2%, or 28.64 points, to 188.92.

America West Resources and Anooraq Resources were the only stocks that ended the week in positive territory, advancing 8¢ to 80¢ per share, or 11.1%, and 1¢ to 60¢ per share, or 1.6%, respectively. America West operates the Horizon coal mine in Carbon County, Utah, and advanced on no news. Anooraq announced that it had concluded a two-year wage agreement between Bokoni Platinum Mines, the Togetherness Amalgamated Workers’ Union of South Africa, the National Union of Mineworkers and the United Association of South Africa. It also updated shareholders on its ongoing strategic review with Anglo Platinum of the Bokoni Group. 

On the negative side of the ledger, Cliffs Natural Resources dropped US$20.10 per share to close the week at US$57.84 on no news, and Walter Energy tumbled US$17.69 to US$64.50 after it revealed that its second-half sales are expected to be “similar” to the 5.2 million tonnes it recorded for the first half of the year. Its earlier forecast was 5.9 million tonnes. The company blamed a combination of record rainfall in B.C. in the second quarter and “difficult” geology at its No. 7 mine in Alabama.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA17397711.759.9410.07-1.90

Freeport McMo*FCX15705140.7730.9732.37-9.22

Mosaic*MOS7104970.2356.5257.70-13.29

Potash C Sask*POT6071055.2645.6245.89-10.19

Alpha Nat Res*ANR5848628.8419.0220.39-9.38

Barrick Gold*ABX5779055.2045.7146.42-7.16

Hecla Mining*HL562407.395.575.69-1.53

Newmont Mng*NEM5341771.2561.1062.86-2.86

Kinross Gold*KGC5033817.9014.7515.21-2.16

Silver Wheatn*SLW4386042.5031.4632.31-7.23

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

America West*AWSR720.820.550.80+11.1

Anooraq Res*ANO5270.630.520.60+1.6

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00.000.000.000.0

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00.000.000.000.0

Keegan Res*KGN6179.444.705.34-42.8

Silver Dragon*SDRG19940.100.060.07-36.3

Quest Rare Mn*QRM28453.862.492.53-35.1

Radius Gold*RDUFF3020.650.390.43-34.8

Stillwater Mg*SWC2543613.188.558.59-34.5

Alpha Nat Res*ANR5848628.8419.0220.39-31.5

Northern Dyn*NAK36448.675.795.96-31.4

China Shen Zh*SHZ1122.301.631.65-31.2

Gold Am Mng*SILA8370.110.070.07-30.0

Lake Shore Gd*LSG7472.141.471.50-29.9

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

America West*AWSR719280.80+0.08

Anooraq Res*ANO5265320.60+0.01

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Cliffs Nat Rs*CLF3126257957.84-20.10

Walter Energy*WLT342534764.50-17.69

Agrium*AGU267823571.84-15.35

Mosaic*MOS7104882057.70-13.29

Randgold Res*GOLD469508896.42-12.42

BHP Billi-BHP*BHP2881208867.74-11.12

Potash C Sask*POT6071002345.89-10.19

Teck B*TCK2857737029.95-10.04

Alpha Nat Res*ANR5848637920.39-9.38

Peabody Enrgy*BTU3741920436.77-9.32