The TSX Composite Index rallied at the end of the July 9-13 period but still finished lower than where it began, shedding 145 points to finish at 11,514.53 points. After a six-day losing streak the Index managed a rebound on July 13 thanks to speculation that China would stimulate its economy after reporting weaker economic growth.
Despite the price of gold climbing US$10 to US$1,592, miners continued to feel slighted as the Global Gold Index fell 15 points to finish at 289.01 points.
The diversified miners didn’t fare any better as indicated by the Capped Metals & Mining Index, which was off 43 points to 826.41 despite copper prices climbing 9¢ to reach US$3.50 per lb.
Rumblings of a potential takeover had Inter-Citic shares on the rise. After heavy trading activity the company was forced by the exchange to issue a release that said it was in takeover negotiations. The suitor, however, was not named due to a confidentiality agreement. The news was enough to send the stock up 50% to $1.59. Inter Citic is focused on its Dachang gold project in China and last month it released an updated resource estimate that increased measured and indicated resources by 320,000 oz. of gold and inferred resources by 250,000 oz.
More concrete takeover news had La Mancha Resources shares moving. The company was up 43% to $3.43 after saying it entered an agreement with Weather Investments that will see Weather pay $3.50 a share in cash for all of La Mancha’s equity. La Mancha’s key assets are in Sudan, Côte d’Ivoire and Australia. Weather is based in Egypt.
The drill was behind the better days seen by Evolving Gold. The company’s shares rose 36% to 32¢ after reporting multiple high grade intervals at its Carlin project in Nevada. Highlight intercepts included 9.1 metres grading 22 grams gold, 2.7 metres grading 33.111 grams gold and 3.8 metres grading 29.53 grams gold.
The drill, however, wasn’t so kind to Semafo. The company announced disappointing exploration results and that was seen as the main driver behind its market fall. The company’s share price fell 37% to $3.48 after releasing long-awaited results from its Mana gold mine in Burkina Faso. The US$39-million exploration program, which included 438,000 metres of drilling, indicated that mineralization may not support planned capital expenditures. The company was looking to find enough gold to justify an increase in gold production by 120,000 oz. per year. That increased production would have been realized by the construction of a US$100-million satellite crushing and milling facility at the site.
The latest actions of the Bolivian government induced a sell-off of South American Silver shares. The company’s stock dropped 55% to 46¢ after the government of the South American country said it would expropriate the company’s Malku Khota silver-indium-gallium project. The news comes in the wake of Bolivia’s nationalization of Glencore International’s Colquiri lead-tin mine earlier this month and its expropriation of Spanish energy firm Red Electra’s local grid in May.
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