Market news

Toronto Stock Exchange

The S&P/TSX Composite Index ended the trading period up, while signs of an improving U.S. economy offset European worries. The index gained 238.21 points to end the last trading day of the year at 11,955.09 points. 

But the increase wasn’t enough to keep the index from losing more than 11% during the year, marking its first year-on-year drop since 2008. The resource-heavy index also finished 17% below a 52-week high of 14,329.49 points reached in March. 

Similarly, the diversified miners’ final performance didn’t make up for the lacklustre year. The S&P/TSX Capped Diversified Metals & Mining Index jumped 24.57 points during the period to 1,080.63 points, but dropped 27% over the year. 

The S&P/TSX Global Gold Index also fell 11.79 points to 360.40 points on Dec. 30, ending 60 points below 2011’s close. 

Bucking the trend was gold, gaining on the year but sliding during 2011’s last trading days. The spot price in New York dropped US$58.10 per oz. during the period to US$1,566.40. But it ended the year up 10% owing to global economic uncertainty and political upheaval, which had investors driving the gold price to new highs. In early September, gold hit a high of US$1,895 per oz. on the London PM Fix. 

Shore Gold was the biggest percent gainer for the period, advancing 43.3% to 43¢ on no news. Following close behind was St Augustine Gold with a 40% gain on no major news. The company, which is developing the King-King copper-gold deposit on the Philippine island of Mindanao, closed the year at 26¢. 

Gran Colombia Gold saw its shares move up 36.8% to 52¢ on 10.8 million shares traded, after it announced on Dec. 20 that it signed an exclusive mandate letter with Standard Bank for a US$100-million, senior-secured term loan. The company plans to use the funds to boost production at its Segovia operations in Colombia by developing a mechanized mining operation catering to four underground gold mines at Segovia. It also plans to add a 2,500-tonne-per-day mill to the existing operation. 

The most actively traded stock was Lake Shore Gold, with 21.2 million shares changing hands. It closed up 3¢ to $1.28 apiece. On Dec. 29, the company said it filed a technical report on the securities-related System for Electronic Document Analysis and Retrieval for the Thunder Creek gold property in Timmins, Ont. The project contains an indicated gold resource of more than half a million ounces. 

On Dec. 22, Kinross Gold closed a US$200-million, non-recourse loan from a group of international financial institutions to fully back its stake in the Kupol gold-silver project in Russia. Its shares lost 56¢ during the period and fell to $11.63 on 14.2 million shares traded. For 2011, Kinross shares dropped 38%. 

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Lake Shore GldLSG212751.301.161.28+0.03

Kinross GoldK1421212.2911.0811.63-0.56

Lundin MngLUN140144.103.813.87-0.01

Yamana GoldYRI1285915.6114.2815.02-0.05

San Gold ResSGR128041.991.621.89-0.05

Eldorado GoldELD1218114.6413.2814.02+0.22

GoldcorpG1183147.0243.0845.21-1.67

Barrick GoldABX1169247.9844.8046.15-1.30

New GoldNGD1125310.649.6610.28-0.18

Gran ColombiaGCM108140.600.360.52+0.14

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Shore GoldSGF41340.430.280.43+43.3

St AugustineSAU53730.350.260.35+40.0

Gran ColombiaGCM108140.600.360.52+36.8

Western LithiuWLC20490.300.220.26+36.8

Macarthur MnlMMS2721.170.931.12+36.5

Emed MiningEMD3400.150.120.15+36.3

Northland ResNAU1791.501.131.48+32.1

Coro MiningCOP5160.340.210.34+30.7

Chieftain MtlsCFB115.024.405.02+28.7

Silver Bear RsSBR1660.690.470.64+28.0

Serabi GoldSBI230.140.090.09-30.7

Alexis MinlsAMC88520.040.030.03-25.0

Nautilus MinlsNUS7302.251.801.80-20.0

Grandview GldGVX710.040.030.04-20.0

Rare Elemnt RsRES7324.173.163.30-19.7

Powertech UranPWE6660.090.090.09-18.1

Kimber ResKBR3521.050.870.88-17.7

Intrepid MnrlIAU17281.371.111.13-17.5

Redhawk ResRDK6520.430.310.35-14.6

Cerro Grande MCEG1180.650.500.55-12.7

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Chieftain MtlsCFB111005.02+1.12

North Am En PaNOA1468806.52+1.04

First QuantumFM534325620.05+0.95

Ivanhoe MinesIVN302484018.09+0.86

Inmet MiningIMN131407465.50+0.80

Potash Cp SaskPOT912925842.11+0.59

Harry WinstonHW57062510.86+0.58

Intl Tower HilITH11687784.43+0.58

Horizns G BearHGD22767049.51+0.57

XinergyXRG5003733.50+0.50

Royal GoldRGL2856368.37-3.76

Allied NevadaANV73292730.95-2.88

Central Gold-TGTU_U2071660.03-2.38

Seabridge GoldSEA9728116.50-1.88

Centerra GoldCG502881218.00-1.85

Coeur d AleneCDM12845124.64-1.80

GoldcorpG1183076745.21-1.67

Walter EnergyWLT1720961.74-1.54

Agnico-EagleAEM343413737.05-1.47

Barrick GoldABX1169154446.15-1.30

TSX Venture Exchange

The S&P/TSX Venture Composite Index managed a modest year-end rally of 77.27 points over the period, bringing the index to a year-end close of 1,484.66 points. In comparison, at the end of 2010 the index hit 2,288 points. Year-end trading and book-clearing helped boost volume and balance quieter days between the holidays to make for an average of 92.3 million shares traded daily.

The trading period saw no breakaway gains, with Olivut Resources taking the highest value gains at 44¢ to end at $1.37. The diamonds explorer recently tried to raise up to $3 million through a private placement with a combination of flow-through shares at $1.25 and common shares at $1.10, but raised only $2.2 million. Despite not selling all shares available, the company got a boost from one of its largest shareholders and increased its position. Pierre Lassonde, chairman and co-founder of Franco-Nevada, bought 800,000 flow-through shares to bring his Olivut holdings to 6 million shares, or 18% of outstanding shares. 

Callinan Royalties was the second-highest value gainer with a 39¢ gain to end at $2.95. Callinan, with its 6.67% net profits interest in HudBay Minerals‘ 777 mine, had $6.5 million in revenue in the quarter ending Sept. 30, and net earnings of $9.6 million from a recovery of deferred income taxes. The company is continuing with a share buyback program in 2012, set to buy as many as 2.5 million shares. In 2011 the company bought 1.6 million shares at a $2.67 average for cancellation, while the company retains 49 million shares outstanding. Callinan is working through a long-standing legal battle with HudBay over payment amounts from the 777 royalty.

Struggling Roca Mines saw a short burst in its share price, doubling at one point to 10¢ before ending up 2¢ at 7¢. The company lost $23.7 million in the year ending Aug. 31 compared with $14.2 million for the year before, and milled less than 15% of 2010 throughput. Roca’s share price had steadily eroded from 41¢ since last January, but was walloped in October when the company announced it was suspending production at its Max molybdenum mine in B.C., only months after restarting operations. The company’s share price sank to an all-time low of 3.5¢ on the news. 

Sandstorm Metals and Energy had a burst of activity, with over 5 million shares traded in one day and 8.3
million shares over the period. The only news the company released was an amendment to a coal stream agreement with Royal Coal, which defers Sandstorm’s right to buy coal at US$55 per ton until the end of 2012 to give Royal Coal more time to increase production and establish cash flow. Royal Coal also has debt and cash-flow guarantees owing to Sandstorm, as well as a 2.7% gross revenue royalty. Sandstorm’s share price closed down a penny at 34¢.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

NWM MngNWM94470.080.070.080.00

Sandstorm Mt&ESND82900.370.320.34-0.01

Royal CoalRDA78210.050.040.05+0.01

Great WesternGWG68390.430.390.41-0.03

Passprt PotashPPI64420.280.220.27+0.03

Hunt MngHMX62930.210.190.21+0.01

Sunridge GoldSGC62620.440.340.41+0.07

African Gold GAGG62510.360.320.32-0.04

Indicator MinlIME59990.010.010.010.00

Catalyst CopprCCY57590.090.080.080.00

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Roca MinesROK54760.100.050.06+200.0

Cascade ResCC11090.060.010.05+150.0

Finlay MinrlsFYL4710.140.060.14+100.0

Amanta ResAMH10710.040.010.04+100.0

Aldrin ResALN16830.180.090.17+88.8

Iconic MnlsICM320.090.060.09+80.0

TAD Mnl ExplTJ2450.090.050.09+80.0

Bravo GoldBVG17090.080.060.07+75.0

Colstar VentCTR1550.120.100.12+71.4

Chilean GoldCHN530.200.120.20+66.6

Endurance GoldEDG5540.090.050.05-44.4

Mega CopperMCU420.100.060.06-40.0

Huntington ExpHEI650.060.050.05-37.5

Sarama ResSWA120.580.440.44-37.1

Knick ExplKNX430.140.100.10-33.3

MazarinMAZH1080.030.020.02-33.3

Canadn Silvr HAGH340.250.250.25-30.5

El Tigre SilvrELS1510.230.190.19-29.6

Pinestar GoldPNS1360.060.050.05-28.5

Stratabd MnrSB770.060.050.05-28.5

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Olivut ResOLV3280851.37+0.44

Callinan RoyalCAA4752382.95+0.39

Anfield NickelANF1501445.66+0.39

Maudore MinlsMAO811355.47+0.38

Galane GoldGG2182951.06+0.25

Loncor ResLN1349001.48+0.23

Dia Bras ExplDIB2872452.78+0.23

Newstrike CapNES2979452.68+0.21

Atac ResATC29961242.62+0.21

Bearing ResBRZ116070.60+0.20

Chesapeake GldCKG20720810.14-1.24

Lumina CopperLCC34156913.19-0.43

Midway GoldMDW1168482.13-0.38

Sarama ResSWA121000.44-0.26

Samex MngSXG3737450.64-0.24

Bear Creek MngBCM25863753.54-0.21

Quest Rare MnlQRM10870842.22-0.19

Pachamama ResPMA5327281.11-0.16

Avala ResAVZ1338781.00-0.15

Batero GoldBAT2853241.83-0.12

U.S. markets

While the European debt crisis weighed heavily on international investors, better-than-expected economic data out of the U.S. drove a pre-holiday rally in U.S. equities. The number of Americans filing new claims for unemployment benefits hit a three-and-a-half year low in the week before Christmas, while consumer sentiment climbed to a six-month high in December. The Dow Jones Industrial Average advanced 113.98 points, or 0.94%, to close the Dec. 21-30 trading period at 12,217.56 points, while the S&P 500 Index rose 16.3 points, or 1.31%, to finish at 1,257.60 points. The price of gold fell from US$1,615.20 per oz. on Dec. 20 to US$1,566.40 on Dec. 30, taking the Philadelphia Gold and Silver Index down 4.76 points, or 2.57%, to 180.64 points.

Freeport McMoRan Copper & Gold was the second most actively traded stock, falling US$0.79 to US$36.79 per share. Reuters reported on Dec. 30 that workers at the company’s Indonesia unit would return to work at the Grasberg mine on Jan. 2 after a three-month strike officially ended on Dec. 14. The delay in resuming work was caused by a dispute with a contractor and has since been resolved. 

China’s Yanzhou Coal advanced US$1.18 per share to close at US$21.20 per share after it announced on Dec. 22 that it plans to merge its Australian unit with Gloucester Coal in a deal worth A$700 million. Yanzhou will own 77% of the new company with Gloucester shareholders owning the remainder. The planned merger will create one of Australia’s largest listed coal companies.

Banro rose 14.5% to US$3.70 per share after the Canadian gold explorer announced that measured and indicated resources at its Namoya project in the Democratic Republic of the Congo have grown by 39% since a January 2011 estimate. Namoya’s measured and indicated resources now total 24.77 million tonnes grading 1.99 grams gold per tonne, for 1.58 million contained oz. gold at a cut-off grade of 0.4 gram gold per tonne. The previous estimate put measured and indicated resources at 14.58 million tonnes grading 2.43 grams gold per tonne for 1.13 million contained oz. gold.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA1583838.998.508.65-0.24

Freeport McMo*FCX7059238.6636.0536.79-0.79

Alpha Nat Res*ANR3887021.3318.8920.43+0.96

Potash C Sask*POT3642343.3239.7041.28+1.09

Kinross Gold*KGC3481811.9710.8011.40-0.46

Elray Res*ELRA341710.030.010.020.00

Barrick Gold*ABX3411946.7343.7245.25-0.84

Hecla Mining*HL339915.744.895.23-0.42

Newmont Mng*NEM3033863.0058.2560.01-2.60

Silver Wheatn*SLW2764429.8826.8528.96-0.84

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Cornerstone C*CTNXF2890.160.130.15+36.3

Dejour Enterp*DEJ17100.600.370.52+33.3

Infrastrc Mat*IFAM1200.090.070.09+28.5

Silver Dragon*SDRG37180.050.040.05+25.0

North Am En P*NOA2557.035.166.44+21.5

Almaden Mnls*AAU10342.542.092.52+17.2

Intl Tower Hi*THM5904.393.684.36+16.5

Santa Fe Gold*SFEG7670.990.790.97+15.4

Banro Res*BAA17263.913.193.70+14.5

Lake Vict Mng*LVCA2430.090.050.08+14.2

Fischer-W Gld*FWGO12970.030.010.01-50.0

Gold Am Mng*SILA10900.060.020.03-50.0

America West*AWSR280.350.210.21-48.7

Samex Mng*SMXMF4460.810.640.65-22.6

Rare Elemt Re*REE68924.073.083.25-18.5

Molycorp*MCP2350429.4923.0523.98-16.9

China Shen Zh*SHZ1421.641.251.27-16.4

Kimber Res*KBX13521.050.850.86-16.5

Midway Gold*MDW7522.582.032.11-16.2

Li3 Energy*LIEG37690.090.060.07-12.5

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Natural Rs Pt*NRP47696027.11+2.43

Alliance Rs P*ARLP42940675.58+1.93

Yanzhou Coal*YZC78745821.21+1.18

Mesabi Trust*MSB59208425.10+1.18

North Am En P*NOA2554076.44+1.14

Potash C Sask*POT3642313441.28+1.09

Ivanhoe Mines*IVN1463687217.72+0.97

Alpha Nat Res*ANR3887043820.43+0.96

Harry Winston*HWD24480010.65+0.71

Soc Quim&M Ch*SQM271389153.85+0.70

Molycorp*MCP2350428423.98-4.89

Compass Mnls*CMP53431568.85-4.32

Randgold Res*GOLD2152436102.10-3.02

Newmont Mng*NEM3033829960.01-2.60

Allied Nevada*ANV91963030.28-2.58

Royal Gold*RGLD305857667.43-2.56

Seabridge Gld*SA227648516.11-1.74

Coeur d Alene*CDE713389124.14-1.52

Buenaventura*BVN460304238.34-1.46

Cliffs Nat Rs*CLF1461114362.35-1.45