The holidays brought cheer to Canadian investors as the TSX Composite Index was up 54 points to 12,433.53 for the Dec. 24-31 period, and equities were still climbing at press time.
A deal between Democrats and Republicans south of the border helped propel markets globally as the country appears to have averted the fiscal cliff. Markets had languished through much of December over fears that the two sides would not come to an agreement and that automatic tax hikes and spending cuts would send the economic giant back into recession.
The good news reverberated through both the precious metals and base metals markets.
The price of gold was up US$17 to US$1,675.80 per oz. and the Global Gold Index was up 11 points to 303.04 with the big boys Barrick Gold and Goldcorp both making gains. Single asset producers such as Detour Gold and Osisko Mining also partook in the upswing.
On the base metal side, renewed optimism for global economic growth had copper climbing 9 cents to US$3.65 per lb. and the Capped Metals & Mining Index was up 10 points to 1,010.99 points. Inmet Mining reflected the red metal’s price gain as its stock was up 65 cents to $73.40 per share.
More impressive, however, were the gains made by Western Copper and Gold as its stock was up 28% for the period. The company issued a statement saying it had no comment on the “unusual trading activity” around its stock. The Vancouver-based company holds significant gold, copper and molybdenum resources and reserves at its Casino project in the Yukon. It recently closed a deal whereby it raised $32 million in cash for the sale of a 2.75% net smelt return royalty.
Lydian International‘s recent adjustments at its Amulsar gold mine in Armenia coincided well with the mini-rally in commodities as the company’s shares were up 21% to $2.16. Lydian recently configured a new crushing circuit at the mine to boost throughput during the winter.
Nuinsco Resources helped to increase investor confidence by closing a loan that put $2.5 million into company coffers. The loan comes after its recent sale of a royalty on its Cameron Gold project for US$5.1 million. The company said the loan would allow it to pursue unspecified projects that could generate cash flow in the very near term. Nuinsco shares were up 33% to 4 cents for the period.
Staying with the financing theme, Marathon Gold completed a $5.5 million bought deal and is now the 100% owner of the Valentine Lake project, which hosts the Leprechaun gold deposit with its measured and Indicated Resource of 9.5 million tonnes grading 2.22 grams gold for 682,000 oz. of gold. Marathon shares were up 20% to 64 cents.
And Vista Gold closed a public offering that raised US$11,502,013. The company intends to use the net proceeds of the offering to advance our Mt. Todd gold project in Australia, including completing a bankable feasibility study. Vista shares were up 18% to $2.58 for the period.
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