Market news

Toronto Stock Exchange

Amidst rising oil prices, the S&P/TSX Composite Index climbed 187 points to finish the holiday-shortened period at 12,725.77 points.  The strength came as oil prices rallied on fears that Israel could go to war with Iran over the latter country’s nuclear program. The price for light, sweet crude oil was up US$5 to US$109.77 per barrel. 

Fears of a confrontation had the “safe haven” gold trade back on, and the yellow metal’s price rose almost US$50 to finish at US$1.776.40 per oz. Miners partook in the strength, evidenced by the S&P/TSX Global Gold Index moving up 9 points to finish at 385.67 points.

Diversified miners also showed resilience as the S&P/TSX Capped Diversified Metals & Mining Index clawed out a 36-point gain and reached the 1,208.67 level as prices for copper, aluminum, nickel, tin, lead and zinc all gained strength. 

Golden Predator was the period’s hottest mining stock as the junior with gold assets in the Yukon saw its share price gain 31% to wind up at 80¢. While Brewery Creek remains the company’s flagship, the share price surge came after the company announced results from its Grew Creek project, which returned a 68-metre highlight assay grading 5.96 grams gold and 24.1 grams silver. The results came out of the Carlos zone. Of the 19 holes drilled in the area, Golden Predator said 12 of them returned notable gold intersections.

A profitable fourth quarter helped lift Yamana Gold. The company’s shares were up $1.32 to $17.72 after reporting a US$89.5-million profit for the fourth quarter. And while that figure was 28% less than the profits from a year ago, the market was in a forgiving mood, given that the decrease came from a one-time, non-cash, US$81-million impairment loss on investments. Yamana generated record operating earnings of US$297 million in the quarter owing to higher gold and silver prices. Those higher prices offset a 3% reduction in gold production for the period.

Banro sealed the deal on a large-scale financing that will raise US$175 million for company coffers. The capital is being earned through a combination of debt and equity, with the equity portion coming in the form of a warrant. The debt is being issued at a 10% interest rate and the company says it will put the new capital towards developing its Namoya gold project in the Democratic Republic of the Congo. Banro shares were up 21% to $5.68 for the period. 

Atna Resources shares reached their highest level in a year as the company’s shares gained 23% to finish the period at $1.45. The move came ahead of a resource estimate released for its Reward Gold project in Nevada. The update boosted measured and indicated resources by 29%. They stand at 16.4 million tonnes grading 0.69 gram gold for 362,600 oz. gold. 

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Uranium OneUUU440753.423.043.34+0.38

Eldorado GoldELD2142315.2813.6315.05+1.56

Denison MinesDML159292.061.861.92+0.06

Lake Shore GldLSG157461.731.491.62+0.13

Kinross GoldK1511811.6511.0211.18+0.31

Yamana GoldYRI1309418.0916.6517.72+1.32

Paladin EnergyPDN120322.111.842.03+0.16

Lundin MngLUN118055.245.025.22+0.18

B2GoldBTO117974.313.784.24+0.50

Cameco CorpCCO1168926.4324.2025.20+1.27

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Golden PredatrGPD39570.860.630.80+31.1

Laramide ResLAM16241.160.891.14+25.2

Powertech UranPWE5730.210.170.21+23.5

Atna Res LtdATN96681.451.211.45+22.8

China Gold IntCGG13094.383.614.35+22.5

Banro ResBAA54365.754.645.68+21.3

Anaconda MngANX14770.120.090.12+20.0

Acadian MngADA650.200.150.18+20.0

Carlisle GoldfCGJ23990.310.250.30+20.0

Geologix  ExGIX68790.440.320.42+20.0

Polo ResPOL400.050.040.04-20.0

XinergyXRG1042.922.452.46-15.1

Guyana GldfldsGUY24238.636.626.75-14.8

Bridgeport VntBPV1940.400.350.35-14.6

Chalice Gold MCXN430.290.250.25-13.7

Armistice ResAZ7580.290.250.25-10.7

First UraniumFIU38570.210.170.18-10.0

Strateco ResRSC10000.600.540.54-10.0

CIC EnergyELC3081.020.880.90-10.0

Canarc ResCCM2970.110.090.09-10.0

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Inmet MiningIMN93327568.50+4.58

Allied NevadaANV104559535.50+3.47

Silver WheatonSLW671332438.76+2.91

Teck BTCKB797876540.66+2.36

Teck ATCKA1069942.30+2.30

Franco-NevadaFNV371373944.21+2.14

Barrick GoldABX1073841648.85+2.02

GoldcorpG1034765448.64+1.83

Centerra GoldCG142297221.43+1.80

Royal GoldRGL1758471.63+1.75

Guyana GldfldsGUY24230416.75-1.18

Horizns G BearHGD22830448.04-0.74

XinergyXRG1044472.46-0.44

IAMGold CorpIMG862977015.90-0.36

WitwatersrandWGR328476.08-0.32

Sherritt IntlS43791926.17-0.29

Extorre Gold MXG17934177.94-0.28

Uranium ParticU11121316.15-0.20

Jaguar MngJAG5890606.57-0.14

Rare Elemnt RsRES4617176.19-0.12

TSX Venture Exchange

The trading period saw the S&P/TSX Venture Composite Index end up 31.37 points to 1,689.52. Volume perked up, averaging 120 million shares traded daily compared with 106 million per day the week before.

Cadillac Mining had the highest percent gain, ending up 16¢, or 188%, at 24.5¢ after trading as high as 50¢ with 13.6 million shares traded. The gains came after the company released three drill holes from its Goldstrike project in southwestern Utah that included 82 metres grading 1.25 grams gold per tonne and 73 metres of 1.08 grams gold, both starting at 24 metres downhole. The reverse-circulation drill results are the first in over a decade from the past-producing heap-leach operation.

Northern Graphite continued its strong 2012 climb, gaining 40¢ in the period to end at $2.08 for $1.22 in gains since Jan. 4. The company is benefiting in part from projected supply constraints and speculation in the graphite market, which has seen prices double since 2009 as demand grows for products such as lithium ion batteries and fuel cells. The company controls the Bissett Creek graphite project in northern Ontario, which hosts 26 million indicated tonnes grading 1.81% graphitic carbon and 55 million inferred tonnes averaging 1.57% graphitic carbon. 

Several silver stocks were among the week’s highest value gainers despite releasing little to no news, as the price of silver gained 6.4% in the period to end at US$35.41 per oz. Silver-focused Bear Creek Mining was the highest value climber on the index, up 50¢ to $3.99; Orko Silver was second, with a 42¢ gain to $2.05; Silvercrest Mines followed, up 30¢ to $2.84; and Impact Silver wrapped up, with 24¢ to $1.93.

Equinox Exploration climbed 7¢ to 17.5¢ after announcing plans to acquire three exploration concessions in Chile’s Atacama region. The 4.5-sq.-km property hosts the Aura copper mine, among other copper prospects, and will cost Equinox US$250,000 cash and 3.5 million shares over five years. The company also met terms to acquire 62 unpatented lode-mining claims in Arizona’s Pinal County, spanning 4.9 sq. km in an area southwest of Florence
. Roughly 800,000 Equinox shares traded hands in the period, compared with 41,000 the week prior.

With 21.1 million shares traded, Royal Coal was the most active company on the index, though the attention was nothing to celebrate. The volume came largely from the company announcing it was unable to complete a proposed financing, and that unless it raises money soon, it was doubtful it would continue as a going concern. Its share price declined 3¢ as a result to end at only half a penny, with 257 million shares outstanding. The company has several million dollars in outstanding debts and payments owing to Sandstorm Metals and Energy and Mercuria Energy Group.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Royal CoalRDA211080.040.030.010.00

Encanto PotashEPO160680.470.350.43-0.01

Aurcana CorpAUN160321.040.900.97+0.09

Cadillac MngCQX135850.500.090.25+0.15

Sandstorm GldSSL96331.761.621.69+0.08

Lomiko MtlsLMR70770.150.090.13+0.03

Golden BandGBN63020.280.250.28+0.02

Cons FortressCFR61050.140.100.12+0.01

Cedar Mtn ExplCED50790.310.210.26+0.03

Apogee MinlsAPE50690.190.170.19+0.01

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Cadillac MngCQX135850.500.090.25+150.0

Landdrill IntLDI10170.280.170.28+75.0

Waymar ResWYM800.530.380.53+60.6

Mexivada MngMNV22530.090.050.08+60.0

Waseco ResWRI2760.110.090.11+57.1

Stikine GoldSKY26550.180.100.17+54.5

Equinox ExplEQX8030.200.120.17+54.5

Rupert ResRUP360.200.130.20+53.8

Goldbank MngGLB4070.040.030.03+50.0

Strata MnlsSMP21310.150.100.15+50.0

Claim Post ResCPS100.040.040.04-42.8

IEMR ResIRI2430.170.070.12-40.0

Cariboo RoseCRB290.110.090.09-35.7

Philippine MtlPHI1050.060.040.04-33.3

Orestone MngORS13910.120.060.08-33.3

Rio Grande MngRGV23110.320.250.27-32.5

Argosy MngAGO8790.170.090.09-30.7

Invenio ResIVO1760.140.100.10-28.5

Santa Barb ResSBL660.340.250.26-25.7

Alpha GoldALQ300.030.030.03-25.0

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Bear Creek MngBCM6977913.99+0.50

Orko SilverOK19101122.05+0.42

Northern GraphNGC36048972.08+0.40

Chesapeake GldCKG2784309.92+0.36

Tasman MetalsTSM5353532.60+0.34

Rio Alto MngRIO16001974.51+0.32

SilverCrest MnSVL14211792.84+0.30

IMPACT SilverIPT4442651.93+0.24

Sarama ResSWA8420001.11+0.21

Atac ResATC7327923.40+0.21

Lumina CopperLCC10677615.51-0.41

GTA Res & MngGTA36126150.99-0.23

RoxgoldROG31597771.94-0.17

Almonty IndAII112230.80-0.15

Luna GoldLGC10574323.06-0.15

Rio Grande MngRGV23105000.27-0.13

Callinan RoyalCAA2126823.00-0.13

Palladon VentPLL187001.87-0.13

Timberline ResTBR282840.50-0.12

Kaminak GoldKAM9666302.62-0.12

U.S. markets

During the President’s Day holiday-shortened week, the S&P 500 Index gained 4.51 points to end at a four-year closing high of 1,365.74. The index has climbed 8% this year, after remaining unchanged in 2011. 

On Feb. 21, the day U.S. markets reopened, eurozone finance ministers approved a US$172-billion bailout for Greece. The deal prevents a debt default by the Greek government, but requires that country take on more austerity measures. 

During the abbreviated week, the Dow Jones Industrial Average rose 33.05 points to 12,982.92. The Philadelphia Gold and Silver Index advanced 7.28 points to 200.10, and the spot price for gold added US$49.80 per oz. to close at US$1,773.60 in New York. 

Cornerstone Capital Resources climbed 20% to finish at US12¢ after hitting a wide copper intercept on its 50% joint-venture Whalesback mine in Newfoundland. The company intersected 2.8% copper over 18 metres as part of an ongoing initial diamond drill program on the past-producing mine.  On Feb. 22, a day before announcing the intercept, the company reported samplings from eight more trenches at its La Fortuna copper-silver project in Chile that confirmed widespread potential for copper and silver mineralization.  

Following a US$50-million increase to its previously announced US$125-million private placement, Banro shares jumped 19.9% to US$5.65. Net proceeds from the US$175-million financing would be used to develop the miner’s second gold mine, Namoya, which lies in the southern end of the Twangiza-Namoya gold belt in the Democratic Republic of the Congo. The project is expected to start producing before mid-2013. The funds will be used to repay an existing credit facility. 

Newmont Mining posted record operating cash flow of US$3.6 billion, US$10.4 billion in revenue and an adjusted net income of US$2.2 billion, or US$4.39 per share for 2011. Income was US$500,000 million from continuing operations, compared to US$2.3 billion in 2010. The figure was impacted by a US$1.6-billion writedown of the company’s Hope Bay gold project in Nunavut.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA8984510.5710.2010.43+0.28

Freeport McMo*FCX5834344.7443.4243.91+0.87

Alpha Nat Res*ANR5542120.7018.7920.46+0.35

Hecla Mining*HL371885.705.165.43+0.41

Arch Coal*ACI3176914.3913.6814.29+0.10

Kinross Gold*KGC3003111.6811.0611.19+0.24

Newmont Mng*NEM2894664.4359.7662.51+3.06

Barrick Gold*ABX2695750.0247.5348.86+1.83

Mosaic*MOS2576059.6055.8658.68+3.05

Potash C Sask*POT2571047.7346.1546.53+0.42

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

America West*AWSR176872.000.240.65+170.8

Starfield Res*SRFDF920.030.020.03+50.0

Tombstone Exp*TMBXF970.050.040.05+25.0

Cornerstone C*CTNXF1120.120.080.12+20.0

Gold Am Mng*SILA1090.060.050.06+20.0

Banro Res*BAA22875.764.675.65+19.9

Dejour Enterp*DEJ15570.500.430.50+19.0

Radius Gold*RDUFF630.390.320.39+18.1

Tanz Roy Exp*TRX34944.253.604.14+15.0

Miranda Gold*MRDDF920.370.310.34+13.3

Lake Vict Mng*LVCA600.100.080.08-27.2

Canarc Res*CRCUF4250.110.090.09-18.1

Samex Mng*SMXMF1790.650.550.55-16.6

El Capitan Pr*ECPN18990.430.340.37-13.9

Anooraq Res*ANO2270.540.460.49-7.5

Uranium Res*URRE68111.151.011.03-7.2

Solitario Res*XPL2331.731.551.57-6.5

Ur-Energy*URG1971.321.231.24-5.3

Platinum Gp M*PLG991.601.421.46-5.1

Molycorp*MCP1659429.6526.5026.81-4.4

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Randgold Res*GOLD1659686115.73+4.68

Allied Nevada*ANV43410735.34+3.20

Newmont Mng*NEM2894569862.51+3.06

Mosaic*MOS2576045158.68+3.05

Silver Wheatn*SLW2275422438.75+2.75

Compass Mnls*CMP23087573.60+2.64

Teck B*TCK1164254940.62+2.18

Franco-Nevada*FNV75509644.19+1.94

Barrick Gold*ABX2695702648.86+1.83

Royal Gold*RGLD269714871.59+1.80

Molycorp*MCP1659421326.81-1.25

OM Group*OMG94095129.90-0.95

Consol Energy*CNX1544010436.33-0.93

Natural Rs Pt*NRP23334325.26-0.53

Extorre Gold*XG8826337.93-0.33

Yanzhou Coal*
YZC54866824.75-0.27

Rare Elemt Re*REE31100996.18-0.26

Uranium Ener*UEC5307694.06-0.19

Uranerz Energ*URZ21314662.60-0.11

Solitario Res*XPL2329491.57-0.11