TSX approaches pre-recession levels

By looking only at the TSX Composite Index, the recession would appear to be miles away.

The Index was up 2% or 288 points for the Feb. 14-18 and actually got within 6% shy of the 15,000 level that it peaked at before the recession hit.

Such market strength has been built on a combination of high commodity prices and an improving economic outlook south of the border. The confluence of the two factors has made Canadian stocks desirable to foreign investors.

Gold has enjoyed resurgence since unrest broke out in North Africa and the Middle East. The metal was up US $27 to US $1,383.50 for the period, and such gains helped the Global Gold Index break through the 400 point mark. The Index was up 19 points to finish the period at 401.13.

The Capped Metals & Mining Index didn’t fair so well, as the index was off 50 points to 1,483.03. Underlying such weakness was softer prices for copper, tin and lead. The prices for aluminum, nickel and zinc, however were slightly stronger over the period.

Yukon-Nevada Gold managed to carve out its gains the old-fashioned way: with the drill bit. The company released a highlight assay of 29 metres grading 13.3 grams gold per tonne and saw its shares climb 24% to 83¢ as a result. The strong intercept came from the company’s Jerritt Canyon property in Nevada and confirmed the continuity of gold mineralization in the area north of existing mine workings.

A new financing was the key to Pacific North West Capital’s market success for the period. The company announced a deal to raise $3 million through a private placement that will see 10 million units issued at 30¢ per unit. The company’s share price gravitated towards the level as its shares were up 82% to finish the period at 31¢. Pacific says the new capital is set to flow into three projects: the River Valley PGM project near Sudbury, the Destiny Gold project in the Abitibi-Témiscamingue region of Québec and the Rock and Roll project located in the Liard Mining District of British Columbia.

And on the downside, the political flux in Egypt took its toll on Centamin Egypt. The company, which operates the Sukari gold mine in the country, had to endure a sit-in protest at its mine, which disrupted production. The company did report, however, that the protest ended on Feb. 19 and that operations were functioning normally again. Centamin shares fell 17% to finish the period at $2.03.

[editor’s note: a paragraph containing incorrect information about Silver Bear Resources and Solid Resoruces was deleted from this story on March 4/11.]