TORONTO STOCK EXCHANGE MAY 20-26

After the TSX Composite Index hit a record high of 15,000 on May 20, the benchmark index slipped 1.9% to 14,758.57 points over the May 20-26 trading session. Other indexes followed suit, with the Capped Metals and Mining Index falling 26.52 points to 858.26, and the Global Gold Index losing 6.47 points to close at 329.85.

Southwestern Resources was the top gainer by percentage, surging 43.4% to 76 a share. On May 16, the mineral explorer declared it had agreed to sell its indirect interest in the scandal-plagued Boka gold project in China to a Hong Kong-based company. The sale will enable Southwestern to focus on its properties in Peru.

Homeland Energy was a close second, gaining 42.3% to $1.68 per share. The energy exploration company, which has three coal projects in South Africa, announced earlier this month that it had increased gross in situ resource tonnage by 30% at its Eloff mining project, 50 km east of Johannesburg. The company also recently completed a deal to sell an additional 5% stake in its South African subsidiary for US$15 million to GMR Group of Bangalore, India.

The biggest loser by percentage was CIC Energy. The stock plummeted 24% to $11 per share after the company announced that, due to the challenging engineering, procurement and construction (EPC) environment, it had to revise project risk allocations for its Mmamabula energy project in Botswana, a planned power station and integrated coal mine in partnership with International Power.

Yamana Gold was yet again the volume leader over the period, still basking in its strong first-quarter results (the first fully integrated quarter following its acquisition of Meridian Gold and Northern Orion Resources last year). On May 7, Yamana reported revenue increased to $356.1 million, representing a 145% increase from the first quarter last year, and a 63% increase from the preceding quarter. Mine operating earnings for the quarter were $195.2 million, a 156% increase from last year’s first quarter and 155% higher than the preceding quarter. With 24.5 million shares traded over the session, Yamana rose 68 to finish at $15.70.

Uranium One shares were also actively traded, with 23.9 million shares changing hands, pushing the stock ahead 29 to $4.81.

One of the top gainers by volume was Franco-Nevada, the world’s leading precious metals royalty company. It announced financial results for its first fullquarter reporting revenues of US$27.5 million, free cash flow of US$23.4 million, and net income of US$5.2 million. Elevated prices for the company’s key commodities –gold, oil, platinum and palladium — boosted its bottom line.

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