Toronto Stock Exchange
The S&P/TSX Composite Index ended the Nov. 21-25 trading week lower as the European debt crisis continued to worry investors. The index closed down 430.38 points to 11,462.06 points.
The Global Gold Index dipped 9.67 points to 391.50 points as the price of gold took a blow, dropping US$44.50 per oz. to US$1,680.30.
The Capped Diversified Metals & Mining Index also had a bad week – it lost 54.04 points to 955.68 points.
Armistice Resources was the week’s biggest percent gainer, surging 37.5% to close at 22¢. The boost came after the company announced that it expects to start producing at its McGarry underground gold mine in December, with gold sales in early 2012. Located in northeastern Ontario’s Kirkland Lake area, the mine is expected to produce 25,000 oz. gold next year, before ramping up to 40,000 oz. in 2013 at cash costs of US$600 to US$650 per oz. produced.
Talon Metals‘ share price soared 23.2% as it released inferred resources for target areas 4, 5 and 6 of its Trairao iron project in Brazil’s Para State. Combined, the new resource totals 103 million tonnes grading 29% iron using a 25% iron cut-off grade. This adds 9% to the total 1.1 billion inferred tonnes averaging 36% iron for target areas 1, 2 and 3.
Kinross Gold was one of the heaviest traded stocks, with 24.3 million shares changing hands during the week. The company lowered its forecast for depreciation, depletion and amortization for the year to US$600 million, down US$51 million from the previous forecast. The company’s guidance for production and cost of sales remains the same, with production at 2.6 million to 2.7 million attributable gold-equivalent oz., and cost of sales between US$565 and US$610 per gold equivalent oz. The gold miner gained 21¢ to close at $13.38 per share.
Lake Shore Gold saw heavy trading during the week on no news. On Nov. 17 the company tabled initial resources for its Thunder Creek and Fenn-Gib gold projects. This brought company-wide resources to 6.4 million oz., but couldn’t keep Lake Shore from falling 27¢ this week to $1.31 apiece on 22.8 million shares traded.
On Nov. 22, Allana Potash put out a preliminary economic assessment on its Dallol potash project in Ethiopia. The study envisions a solution mine at Dallol producing 1 million tonnes of potassium chloride a year for 30 years. The project would cost US$796 million to build and has an after-tax net present value of US$1.85 billion, including a 36.8% internal rate of return at a 12% discount. Production is expected to start at a low rate in late 2014 before ramping up to 1 million tonnes in 2017. Despite the positive scoping study, the company’s shares slipped 12¢ to $1.08 on 16 million shares traded.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR469720.610.530.57-0.05
Kinross GoldK2433513.7112.5913.38+0.21
Lake Shore GldLSG228891.581.291.31-0.27
Allana PotashAAA160831.261.051.08-0.12
Lundin MngLUN157043.563.273.55+0.09
Mercator MnlsML136171.641.441.48-0.16
Barrick GoldABX1144551.3949.1850.16-0.01
Teck BTCKB1053635.1932.4632.66-2.47
Aura MnlsORA104121.251.141.17-0.07
Torex GoldTXG104111.751.471.69+0.20
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Armistice ResAZ36640.250.140.22+37.5
Yorbeau Res AYRBA12120.210.160.21+31.2
Dynasty Met&MnDMM4503.082.203.04+25.6
Talon MetalsTLO4820.590.380.53+23.2
IverniaIVW36570.090.060.07+16.6
MDN IncMDN2140.260.210.25+13.6
Torex GoldTXG104111.751.471.69+13.4
Forbes & Man CFMC12191.651.251.51+11.0
New Dawn MngND1241.181.091.14+10.6
Dalradian ResDNA4902.121.862.09+10.0
Velocity MinlsVLC640.140.100.11-35.2
Red Cresc ResRCB1740.380.250.25-32.4
Cobriza MtlsCZA1290.230.160.16-30.4
Calvista GoldCVZ970.600.470.48-26.1
Pac NW CapPFN8270.160.120.12-25.0
Entree GoldETG7811.681.231.23-23.6
Uranerz EnergyURZ1172.021.561.60-21.1
Lithium AmericLAC2171.351.091.10-20.2
Crystallex IntKRY8870.190.140.16-20.0
Silver PredatrSPD840.400.320.32-20.0
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Dynasty Met&MnDMM4502673.04+0.62
Franco-NevadaFNV459489242.30+0.41
Rainy River RsRR24964227.40+0.40
Horizns G BearHGD20901378.30+0.36
Contintl GoldCNL31280049.00+0.36
Royal GoldRGL8694578.71+0.31
Seabridge GoldSEA4439621.53+0.30
Kinross GoldK2433498713.38+0.21
Tanz Roy ExpTNX3533472.75+0.21
Torex GoldTXG104111081.69+0.20
Walter EnergyWLT2508066.33-7.65
AgriumAGU258269969.44-3.19
Agnico-EagleAEM394214043.62-2.56
Inmet MiningIMN67522051.16-2.50
Teck BTCKB1053567232.66-2.47
Labdr I-Ore RoLIF_U75169332.85-2.15
Cameco CorpCCO587481117.37-2.01
GoldcorpG804691550.38-1.51
Potash Cp SaskPOT873911742.94-1.50
Coeur d AleneCDM5843126.94-1.48
TSX Venture Exchange
The Nov. 21-25 trading period was bleak on the S&P/TSX Venture Composite Index, with the index dropping every day to end the week down 102.53 points at 1,505.14 points.
Volume was also noticeably down at an average of 74 million shares traded daily, though that was largely related to the U.S. Thanksgiving holiday and corresponding market closure.
Recently listed Banks Island Gold climbed strongly, up 17¢, or 52%, after releasing high-grade drill intercepts from the Tel zone at its Yellow Giant gold property in B.C. Hole 11-07 hit 2 metres carrying 18.8 grams gold per tonne and 158 grams silver per tonne from 41 metres downhole, and hole 11-05 cut 0.2 metre averaging 117 grams gold and 83 grams silver from 33 metres depth, with both reported as true widths containing lead and zinc. The company also released a preliminary economic assessment for a small-scale underground mine at the project that established a $26.4 million pre-tax net present value (NPV) and a 414% internal rate of return, with payback in 1.2 months.
Anfield Nickel was one of the few stocks that made significant value gains, climbing 49¢ to $6 for a new 52-week high. The gains came despite an absence of news from the company and a steadily eroding nickel price. Nickel, ending the period at US$7.70 per lb., traded at around US$9 per lb. at the end of October and at upwards of US$13 per lb. in late February 2011. Anfield is advancing its Mayaniquel project in Guatemala, which has an NPV of US$606 million based on an 8% discount rate and US$8.25 per lb. nickel.
Cap-Ex Ventures capped off an impressive recovery that has seen its share price climb from 25¢ in October to a high of $1.25 in the period before ending at $1.05. The company has reported numerous drill results from its Block 103 iron ore discovery 30 km northwest of Schefferville, Que. Results include 159 metres grading 31.2% iron and 127 metres averaging 29.6% iron, while it reports an average true width of 110 metres of magnetite mineralization in the 17 holes drilled so far. After listing in January, the company hit a 52-week high of $1.62 in April and then fell precipitously to its 52-week low in October.
Shear Diamonds went from 14¢ to 23¢ with 4 million shares traded on no apparent news. The Nunavut-focused diamond explorer is working to reviv
e the past-producing Jericho diamond mine as well as advance its Churchill and Slave Lake projects. In early October the company announced it recovered 200.85 carats from 22.1 wet tonnes of tailings at Jericho in initial test mining. The company’s share price has declined fairly steadily from 95¢ last December to a 52-week low of 12¢ in November.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
NWM MngNWM220550.100.080.08-0.02
Iberian MnlsIZN151751.111.091.09-0.03
Cap-Ex VentCEV144261.250.911.05+0.07
Habanero ResHAO76490.090.070.070.00
Canaco ResCAN63681.531.151.32+0.07
Royal CoalRDA53520.060.040.05+0.01
West Af Iron OWAI45400.130.090.10-0.02
RPT UraniumRPT42410.060.050.050.00
Shear DiamondsSRM40090.230.120.22+0.09
Decade ResDEC38370.140.100.11-0.02
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Dawson GoldDYU3520.200.030.20+566.6
Cannon Pnt ResCNP390.260.260.26+333.3
Cougar MnlsCOU1540.020.010.02+100.0
Shear DiamondsSRM40090.230.120.22+69.2
Banks Island GBOZ3270.600.350.50+51.5
Star UraniumSUV2050.030.020.03+50.0
Cenit CorpCNT5940.090.060.08+33.3
Defiance CaptlDEF550.820.620.80+33.3
Lomiko MtlsLMR2440.040.030.04+33.3
Santa Barb ResSBL470.120.120.12+33.3
Cariboo RoseCRB14080.330.080.08-75.7
Fjordland ExpFEX8800.170.080.08-52.9
United ReefURP3980.020.010.01-50.0
Everett MinlsEAR30440.030.010.01-50.0
Grenville GoldGVG420.230.150.15-42.3
RT MineralsRTM710.100.090.09-40.0
Actus MnlsAAC100.060.050.05-37.5
Jasper MngJSP350.170.150.15-34.7
Honey Badger ETUF1480.050.040.04-33.3
Artha ResAHC5550.100.080.08-33.3
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Anfield NickelANF6355346.00+0.49
Cannon Pnt ResCNP394000.26+0.20
Defiance CaptlDEF550900.80+0.20
Dawson GoldDYU3520000.20+0.17
Tigray ResTIG3842911.55+0.17
Banks Island GBOZ3265000.50+0.17
Maudore MinlsMAO2611016.11+0.16
Rio Alto MngRIO16013232.97+0.14
Midland ExplMD197001.57+0.11
Samco GoldSGA223001.10+0.10
Chesapeake GldCKG3858312.17-1.33
Verde PotashNPK1070776.20-0.96
Mirasol ResMRZ2243653.30-0.50
Trelawney M&ExTRR30019573.10-0.45
Bear Creek MngBCM4766964.19-0.42
Gold CanyonGCU8082722.35-0.42
Tasman MetalsTSM10836672.03-0.37
Giyani GoldWDG3928291.32-0.36
Prophecy PlatNKL2468942.37-0.36
Kaminak GoldKAM12332972.37-0.35
U.S. markets
There wasn’t a lot to cheer about in the U.S. markets leading up to the Thanksgiving holiday. The abbreviated trading week was marred by more bad news from
Europe, where Germany failed to find enough bids for a 10-year treasury bond auction, bond yields edged higher in nearly every country in the Euro zone, Standard & Poor’s downgraded Belgium’s credit rating and the euro hit a seven-week low against the dollar. The Dow Jones Industrial Average dropped 4.78% at 11,231.78 points, while the S&P 500 Index fell 4.69% to 1,158.67 points. The Nasdaq Composite Index lost 5.10% to 2,441.51 points.
Buenaventura, Peru’s largest publicly traded precious metals company, topped the list of value gains with an advance of 14¢ to US$39.52 on no news, while Xtra-Gold Resources climbed 8¢ to US$1.66, also on no news. On Nov. 9 the junior released assays from 15 diamond drill holes at its Kibi project in Ghana, the highlights of which included 62 metres of 1.57 grams gold per tonne, including 42 metres of 2 grams gold, and 41 metres of 1.62 grams gold with 20 metres of 2.18 grams gold.
Vale‘s shares fell US$2.90 to US$21.90. The company completed a US$3-billion share repurchase program on Nov. 25. And its board approved a US$6-billion expansion of its Moatize coal project in Mozambique, according to a Reuters report. The expansion will raise output from 11 million tonnes a year to 22 million tonnes a year, the news agency reported, citing a senior company official, who also forecast that first production from the expanded mine will begin in the second half of 2014.
Vale released a capital expenditure (capex) budget for 2012 of US$21.4 billion, down from this year’s US$24 billion. The Brazilian mega-miner reported that the 2012 capex budget allocates US$12.9 billion for project execution, US$6.1 billion for existing projects and US$2.4 billion for research and development. It said most of the budget is targeted for expanding iron ore and coal production, which accounts for 56% of total capex, while 22% of the capex has been earmarked for base-metal projects.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA1115039.598.878.95-0.74
Freeport McMo*FCX5761536.4433.7733.82-3.12
Alpha Nat Res*ANR3354421.5018.8018.81-3.42
Kinross Gold*KGC3329013.1612.0812.74-0.09
Potash C Sask*POT2574542.8740.5440.67-2.63
Arch Coal*ACI2545514.9613.5713.63-1.24
Hecla Mining*HL229275.865.305.30-0.67
Barrick Gold*ABX2170449.6547.3447.59-1.25
Mosaic*MOS2006553.7349.0849.30-3.56
Vale*VALE1993424.4721.7621.90-2.90
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Santa Fe Gold*SFEG1980.960.850.96+5.4
Tri-Valley*TIV22460.210.160.20+5.2
Xtra-Gold Res*XTGR831.661.571.66+5.0
Alberta Star *ASXSF210.230.200.23+4.5
Tanz Roy Exp*TRX22222.742.112.53+1.2
DRDGOLD*DROOY2556.446.056.43+1.1
Buenaventura*BVN326641.0038.4139.52+0.3
00.000.000.000.0
00.000.000.000.0
00.000.000.000.0
Starfield Res*SRFDF230.020.010.01-50.0
Uranerz Energ*URZ11101.931.531.53-22.3
Entree Gold*EGI5331.621.191.24-20.0
Linux Gold*LNXGF1370.050.030.04-20.0
America West*AWSR140.500.400.40-20.0
Tombstone Exp*TMBXF890.050.040.04-20.0
Western Coppr*WRN1911.871.511.56-19.5
Denison Mines*DNN5431.461.221.22-19.2
China Shen Zh*SHZ502.301.861.92-18.6
Mines Managem*MGN4322.201.771.81-17.7
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Buenaventura*BVN326559139.52+0.14
Xtra-Gold Res*XTGR825501.66+0.08
DRDGOLD*DROOY2549656.43+0.07
Santa Fe Gold*SFEG1978260.96+0.05
Tanz Roy Exp*TRX22215742.53+0.03
Alberta Star *ASXSF205760.23+0.01
Tri-Valley*TIV22464600.20+0.01
00.000.00
00.000.00
00.000.00
Walter Energy*WLT108965663.13-8.99
Cliffs Nat Rs*CLF1142722359.72-7.74
Randgold Res*GOLD2144221103.88-7.13
BHP Billi-BHP*BHP1184403966.32-5.60
Compass Mnls*CMP11341569.42-5.08
BHP Billi-BBL*BBL580317153.93-4.71
Agrium*AGU118329265.87-4.71
Mosaic*MOS2006504449.30-3.56
Alpha Nat Res*ANR3354373918.81-3.42
Agnico-Eagle*AEM587727941.52-3.38
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