TSX slides, May 4-8

Poor jobs data and a decline in energy stocks after the New Democratic Party majority win in Alberta sent the S&P/TSX Composite Index down 1.1% to 15,170.02. The S&P/TSX Capped Diversified Metals & Mining Index fell 2.8% to 805.08, and the S&P/TSX Global Mining Index and S&P/TSX Global Gold Index both lost 1.7% to finish at 67.96 and 165.38. Gold, however, climbed 0.8% to US$1,187.50 per oz. The Canadian economy lost 19,700 jobs in April, the most since last August. The unemployment rate stayed at 6.8% for the third straight month.

Alaska-focused Freegold Ventures topped the percentage winners’ list. It soared 80% to 18¢ per share after raising $687,250 in a non-brokered private placement, where it issued 6.8 million units priced at 10¢ apiece. Each unit consists of one share and a half warrant, with a whole warrant exercisable at 15¢ within three years from the transaction closing. Freegold’s flagship asset is the Golden Summit gold project near Fairbanks. 

Shares in Lithium Americas got a boost after the company reported discussions with South Korea’s Posco to commercialize its Cauchari-Olaroz lithium project in Argentina. The two parties will form a joint venture company, where Posco will use its proprietary lithium extraction technologies to produce lithium carbonate and lithium hydroxide from Lithium Americas’ properties. After positive results from a demo plant earlier this year, the firms intend to build a commercial plant producing up to 20,000 tonnes per year of lithium carbonate equivalent, with plant construction in late 2015. Lithium Americas shares jumped 38% to 42¢.

Wildcat Silver shares climbed higher on drill results from its 80%-owned Hermosa property in Arizona. The firm drilled five holes into the zinc-lead-silver sulphide resource, now known as the Hermosa Northwest project, which is the down-dip extension of the company’s silver-manganese Hermosa manto oxide project. One of the best holes returned 89 metres of 6.8% zinc, 3.8% lead, 1.50 grams silver and 0.2% copper. Wildcat intends to keep drilling the project and update the resource. Its shares moved up 33% to close at 39¢.

Sherritt International saw heavy trading after announcing its April 2015 operating results for its 40%-held Ambatovy nickel-cobalt mine in Madagascar. Sherritt’s monthly production was 1,244 tonnes nickel and 50 tonnes cobalt — slightly below results in recent months. The miner says the underperformance resulted from strikes at the mine and the plant in April, where Ambatovy operated at reduced rates and underwent refinery maintenance. Both strikes have been resolved. Sherritt added 44¢ to end at $3.10 on 24.3 million shares traded. Desjardins Capital Markets has a “hold-above-average risk” rating, with a one-year, $2.25 target on the stock.