Reports that the U.S. economy is slowing took some of the steam out of a rebounding TSX Composite Index during the Aug. 21-27 trading period.
The index still managed to finish 84.23 points higher at 12,632.68, but reports that unsold homes in the U.S. were at a 16-year high fed worries that a slower economy south of the border could cut demand for Canadian resources.
On the positive side, weeks of drought on the mergers-and-acquisitions front came to an end with U.S. Steel’s offer to buy Stelco for US$1.1 billion. The announcement not only lifted Stelco stock by 55% over the period, but also pushed the Canadian dollar higher as the sum would be paid in Canadian funds.
The mining sector rebounded during the session, led by the gold sector’s return to favour in the eyes of investors. Global Gold Index tracked the price of the yellow metal higher. The index was up nearly 3% to 260.21, while the price of gold climbed 1% or US$7.50 to finish at US$667 per oz.
The Capped Metals and Mining Index also made gains, climbing 59.71 points to 789.41 on the back of stronger copper, nickel and lead prices. Tin and zinc prices, however, fell slightly, with tin dropping to US$6.47 per lb. and zinc to US$1.40 per lb.
Zinc producer Breakwater Resources, with its nearly 420 million shares outstanding, was the period’s most actively traded miner. The Toronto-based company finished the week 25 higher at $2.75 on roughly 25 million shares traded.
Uranium pure-play Paladin Resources followed, with 22 million shares traded after it began to recover from the thumping it and other uranium stocks have been taking. The Perth, Australia-based company gained 41 to finish at $5.68.
After heavily punishing Khan Resources for news that the licence for part of its Dornod uranium project, in Mongolia, had been declared invalid by the government, the market thought kinder of the uranium junior and lifted its stock price by 41% to $1.88. The upward movement was the period’s largest by percentage. The turn for the better came after the company said discussions with the government clarified that the licence has not yet been declared invalid, but is subject to review and may be deemed invalid in the future.
Southwestern Resources was the period’s biggest loser by percentage after a review by the company and an independent consultant said its Boka project drill results had been doctored. The company lost 23% of its share price to finish at $1.70.
Southwestern is taking legal action against its former chief executive and qualified person, John Paterson, for fraud, breach of fiduciary, statutory and contractual duties and insider trading, seeking to recover all damages and losses.
TSX most active issues
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Breakwater Res | BWR | 24873 | 2.89 | 2.44 | 2.75 | +0.25 |
| Paladin Res | PDN | 22056 | 5.76 | 5.05 | 5.68 | +0.41 |
| Redcorp Vent | RDV | 19703 | 0.28 | 0.25 | 0.265 | -0.015 |
| Goldcorp | G | 18490 | 24.84 | 22.59 | 24.18 | +1.38 |
| Eastern Platin | ELR | 17851 | 2.21 | 1.98 | 2.13 | +0.06 |
| Equinox Minls | EQN | 15666 | 3.65 | 3.12 | 3.45 | +0.30 |
| Kinross Gold | K | 15419 | 12.70 | 11.92 | 12.09 | +0.04 |
| Constel Copper | CCU | 14884 | 1.17 | 1.05 | 1.09 | -0.01 |
| Yamana Gold | YRI | 11321 | 11.03 | 10.42 | 10.79 | +0.31 |
| Teck Comin B | TCKB | 11182 | 45.77 | 40.50 | 44.89 | +3.75 |
TSX greatest percentage change
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Khan Res | KRI | 9674 | 1.98 | 1.06 | 1.88 | +41.3 |
| Africo Res | ARL | 201 | 1.50 | 0.82 | 1.21 | +35.9 |
| Mirabela Nickl | MNB | 4752 | 4.19 | 3.03 | 4.05 | +34.5 |
| Grande Cache C | GCE | 4537 | 1.06 | 0.75 | 1.00 | +31.5 |
| Centerra Gold | CG | 939 | 7.10 | 5.14 | 6.82 | +30.1 |
| Energy Fuels | EFR | 2312 | 2.07 | 1.51 | 2.01 | +28.8 |
| Stornoway Diam | SWY | 1713 | 0.89 | 0.67 | 0.84 | +25.3 |
| Centamin Egypt | CEE | 7110 | 1.15 | 0.91 | 1.15 | +25.0 |
| Mundoro Mng | MUN | 684 | 0.79 | 0.59 | 0.75 | +25.0 |
| South Am Silvr | SAC | 951 | 0.90 | 0.70 | 0.90 | +23.2 |
| Southwstrn Res | SWG | 1378 | 2.23 | 1.69 | 1.70 | -23.0 |
| Sierra Minls | SIM | 17 | 0.32 | 0.275 | 0.28 | -20.0 |
| New Gold wt | NGD_T | 36 | 0.12 | 0.095 | 0.12 | -20.0 |
| Alexco Res | AXR | 919 | 4.47 | 3.11 | 3.60 | -18.5 |
| Atlanta Gold | ATG | 32 | 0.77 | 0.65 | 0.75 | -11.7 |
| Gateway Gold | GTQ | 210 | 0.75 | 0.60 | 0.61 | -11.5 |
| Peregrine Diam | PGD | 81 | 1.35 | 1.05 | 1.20 | -11.1 |
| Royal Gold | RGL | 28 | 31.00 | 28.08 | 28.08 | -10.4 |
| Glencairn Gold | GGG | 3403 | 0.20 | 0.175 | 0.175 | -10.2 |
| Glencairn G wt | GGG_T | 71 | 0.05 | 0.035 | 0.045 | -10.0 |
TSX greatest value change
| VOLUME | CLOSE | CHANGE | ||
| Potash Cp Sask | POT | 4504001 | 90.36 | +6.74 |
| Inmet Mining | IMN | 1358300 | 83.15 | +5.55 |
| Agrium | AGU | 2685268 | 47.02 | +5.35 |
| First Quantum | FM | 1905797 | 82.20 | +4.94 |
| Labdr I-Ore Ro | LIF_U | 326022 | 35.47 | +4.62 |
| Fording C C T | FDG_U | 2556489 | 34.51 | +4.26 |
| Teck Comin B | TCKB | 11182327 | 44.89 | +3.75 |
| FNX Mining | FNX | 4363327 | 28.70 | +3.60 |
| Major Drilling | MDI | 286708 | 44.05 | +2.98 |
| Alcan | AL | 6185070 | 103.25 | +2.77 |
| Royal Gold | RGL | 28228 | 28.08 | -3.27 |
| Alexco Res | AXR | 918891 | 3.60 | -0.82 |
| Dynasty Met&Mn | DMM | 371264 | 7.05 | -0.78 |
| Platmin | PPN | 67326 | 7.04 | -0.73 |
| Minefinders | MFL | 895585 | 9.19 | -0.52 |
| Southwstrn Res | SWG | 1377922 | 1.70 | -0.51 |
| Tanz Roy Exp | TNX | 431571 | 5.23 | -0.25 |
| Detour Gold | DGC | 217450 | 6.16 | -0.24 |
| Metallica Res | MR | 1808638 | 3.75 | -0.22 |
| Marathon PGM | MAR | 11950 | 5.30 | -0.21 |
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