Toronto Stock Exchange, Jan. 20-24

Disappointing manufacturing data in China, battered currencies in many emerging markets and renewed anxiety over the U.S. Federal Reserve’s plan to taper its bond purchases slammed many North American equities. The S&P/TSX Composite Index dropped 1.23% to 13,717.76, while the S&P/TSX Capped Diversified Metals & Mining Index fell 4.22% to 820.07. As many investors cut their positions in risky assets and turned to safe havens like gold, the precious metal ended the week higher at US$1,269 per oz., a US$14.90 gain. The S&P/TSX Global Gold Index rose 2.63% to 182.48.

 

The flight to safety buoyed many of the gold-focused companies listed on the Toronto Stock Exchange, including Franco-Nevada, which jumped $2.01 to $51.91 per share, Royal Gold, which climbed $1.59 to $61.74 and Agnico Eagle Mines, which advanced $1.32 to $34.17. None of the three companies issued any news.

 

Osisko Mining was the most actively traded stock, with 28.5 million shares changing hands. The company’s shares ended the week up 9¢ at $6.56. The gold producer said in a press release on Jan. 20 that the cash-and-share offer it had received from Goldcorp failed to recognize the value of its Malartic gold mine in Quebec, and called the offer’s timing opportunistic. Goldcorp is offering 0.146 of a share plus $2.26 in cash for each Osisko share held, for a total value of $5.95 per share. Shares of Goldcorp, meanwhile, rose 75¢ to $26.60.

 

Barrick Gold’s shares dropped 51¢ to $21.05. CEO Jamie Sokalsky, speaking mid-week at a CIBC Institutional Investor conference in Whistler, B.C., said the company plans to take another impairment charge on its Pascua-Lama mine. He noted management intends to cut Barrick’s gold reserves and the company will produce less gold this year than last. Details will be provided when the company tables its year-end results. The trading week also saw Barrick agree to sell its interest in the Kanowna Belle and Kundana mine operations in Western Australia to Northern Star Resources for US$66 million. The mines produced 225,000 oz. gold last year.

 

B2Gold shares fell 4¢ to $2.67. The company announced record gold revenue in 2013 of $544.3 million, an increase of $285.2 million over 2012, and attributable gold production of 366,313 oz., an increase of 132% year-on-year. In addition, an inferred resource estimate completed for the recently discovered Wolfshag zone at its Otjikoto project in Namibia outlined 6.8 million tonnes grading 3.2 grams gold per tonne for 703,000 contained oz. gold. Wolfshag is adjacent to the Otjikoto deposit, where production from an open pit is expected to start in the fourth quarter.

TSX most active issues

		Volume	Week
		(000s)	High	Low	Close	Change
Osisko Mng	OSK	28481	6.7	6.35	6.56	+	0.09
Torex Gold	TXG	18474	1.37	1.11	1.14	–	0.19
PMI Gold	PMV	18243	0.4	0.35	0.37	–	0.01
B2Gold	BTO	17395	2.76	2.55	2.67	–	0.04
Teranga Gold	TGZ	17139	0.78	0.66	0.73	+	0.04
Baja Mng	BAJ	17003	0.05	0.01	0.05	+	0.04
Barrick Gold	ABX	15656	22.12	20.42	21.05	–	0.51
Kinross Gold	K	15246	5.33	5.05	5.15	–	0.15
Goldcorp	G	14856	27.22	25.1	26.6	+	0.75
First Quantum	FM	14621	21.07	19.14	19.82	–	0.57

TSX greatest percentage change

		Volume	Week
		(000s)	High	Low	Close	Change
Baja Mng	BAJ	17003	0.05	0.01	0.05	+	233.3
Minco Gold	MMM	444	0.42	0.25	0.42	+	78.7
Inspiration Mg	ISM	358	0.11	0.08	0.1	+	42.8
Cerro Grande M	CEG	53	0.04	0.03	0.04	+	40
South Am Silvr	SAC	799	0.4	0.27	0.36	+	33.9
Chieftain Mtls	CFB	497	0.32	0.23	0.28	+	33.3
Bannerman Res	BAN	691	0.09	0.06	0.08	+	25
Formation Mtls	FCO	368	0.13	0.11	0.13	+	23.8
Xinergy	XRG	659	0.3	0.2	0.3	+	22.4
Gabriel Res	GBU	1645	1.23	0.96	1.2	+	22.4
American Bonan	BZA	4629	0.04	0.02	0.02	–	33.3
Macarthur Mnl	MMS	270	0.26	0.19	0.2	–	31
Stockport Expl	SPT	15	0.05	0.05	0.05	–	23
Carpathian Gld	CPN	11219	0.1	0.06	0.07	–	22.2
Walter Energy	WLT	72	15.19	12.46	12.53	–	18.1
Hard Creek Ni	HNC	160	0.06	0.05	0.05	–	18.1
Verde Potash	NPK	481	0.95	0.66	0.74	–	17.7
Vena Res	VEM	562	0.09	0.07	0.08	–	16.6
Besra Gold	BEZ	1310	0.06	0.05	0.05	–	16.6
Claude Res	CRJ	1954	0.24	0.2	0.2	–	16.6

TSX greatest value change

		Week
		Change	Close	Change
Franco-Nevada	FNV	2364690	51.91	+	2.01
Royal Gold	RGL	41214	61.74	+	1.59
Agnico-Eagle	AEM	6427349	34.17	+	1.32
Goldcorp	G	14856476	26.6	+	0.75
Energy Fuels	EFR	995361	8.39	+	0.7
Virginia Mines	VGQ	91983	13.51	+	0.52
Royal Cdn Mint	MNT	54519	15.14	+	0.42
North Am En Pa	NOA	28800	6.55	+	0.41
Pretium Res	PVG	1824332	7.06	+	0.32
Horizns G Bull	HGU	3801285	9.13	+	0.24
Agrium	AGU	2152811	98.78	–	5.59
Walter Energy	WLT	72363	12.53	–	2.78
Teck Res B	TCKB	7985107	26.61	–	2.49
Potash Cp Sask	POT	11626599	35.19	–	2.31
Alamos Gold	AGI	3284708	10	–	1.31
Russell Metals	RUS	668766	28.92	–	1.16
Labdr I-Ore Ro	LIF	411771	32.72	–	1.06
Argonaut Gold	AR	5564891	4.94	–	0.89
Altius Mnrls	ALS	140154	15.09	–	0.8
HudBay Minls	HBM	2990188	8.93	–	0.77