Toronto Stock Exchange, July 2-5

The holiday shortened period was defined by political tension and market volatility, and the S&P/TSX Composite Index followed the global trend, as it wound up 44 points lower  at 12,134.91 points.

Fuelling the tumult was the prospect of a government collapse in Portugal, violent anti-government protests in Egypt and more signs of a sluggish Chinese economy. Investors sold on the bad news mid-week, but they began to buy after stronger-than-expected job numbers out of the U.S. and pro-growth statements from the new Canadian governor of the Bank of England, Mark Carney. The positive momentum dwindled by the end of the period, however, as yields rose and prices fell on longer-term treasuries.

The weakness in the bond market affected the commodity sector, with the spot gold price falling US$40 to US$1,212.70 per oz., and the spot copper price dropping 9¢ to US$3.06 per lb.

 Softer prices for the underlying metals meant softer equity valuations for those that mine them, as the S&P/TSX Global Gold Index dropped 10 points to 161.98 points, and the S&P/TSX Capped Diversified Metals & Mining Index dropped 22 points to 685.19 points.

But it wasn’t all bad news in the mining sector. Mandalay Resources, for instance, saw its share price climb after announcing its credit limit had increased 50% to US$30 million. The extra funds will be available until next June, after which time the revolving facility reverts to the US$20-million limit. Mandalay says part of the extra cash will help fund permitted acquisitions. The company’s shares were up 25% to 85¢ for the period.

Midas Gold also secured a good chunk of change. The company said it was getting the cash it needs to advance its Golden Meadows gold-antimony-silver project in Idaho until the end of 2014. The amount of cash is $9.8 million, and it’s coming by way of Teck Resources. Teck entered into a non-brokered private placement for 12.7 million shares priced at 77¢ apiece. The investment will give Teck a 9.9% stake in the junior. Once the deal closes Midas will have US$25 million in its treasury, and it expects to complete a resource estimate later this year. Midas shares were up 16% to 85¢ for the period.

Sabina Gold & Silver released strong drill results from the George deposit at its Back River gold-silver project in Nunavut. Notable highlights from George included 8.96 grams gold per tonne over 18.5 metres, 13.55 grams gold over 7 metres and 18.34 grams gold over 8.8 metres. The George deposit hosts an underground global resource of 1.9 million oz. gold with an average grade of 7.05 grams. The company expects to have a prefeasibility study done on Back River later this year. Sabina shares were up a cent to 99¢ for the period.

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