TSX slips during March 11-15

The TSX Composite Index was down nearly 6 points to end the March 11-15 week at 12,830.03 points, thanks to a 1% or 134-point decline on March 13.

 The Global Gold Index remained relatively flat at 251.62 points despite the spot gold price adding US$13.70 to US$1,592.90 per oz. The Capped Metals & Mining Index bucked the downward trend, rising 11 points to 942.45.  

One of the week’s percentage winners was Alderon Iron Ore, jumping 35% or 43¢ to $1.67 after Hebei Iron and Steel Group handed the company $119.9 million to complete its partnership agreement announced in April 2012.

Last September, Hebi injected $62.2 million in Alderon to receive 19.9% of the junior and now $119.9 million for a 25% stake in the Kami iron ore project located in the Labrador Trough. Alderon owns the remainder of the project and says the recent proceeds will all go towards developing the estimated US$1.3-billion Kami project. It anticipates receiving environmental approvals and construction permits by year end.

As part of the deal, Hebei — China’s largest steel company —will assist Alderon in obtaining project debt financing along with additional off-take partners for Kami’s remaining annual production.  

So far, Hebei is set to buy 60% or 4.8 million tonnes of the first 8 million tonnes of iron ore concentrate produced each year at Kami at a 5% discount to market price.

After taking a hit the week earlier for saying it’ll close the Kiena gold mine by June, Wesdome Gold Mines climbed 31% to 72¢ on 2012 financials. The miner produced 55,813 oz. gold for 2012, up 17% from the year ago. Costs also rose 13% to $1,385 per oz. For 2013 it forecasts output of 55,000 oz. gold, with Kiena estimated to contribute 5,000 oz.

Royal Nickel welcomed a boost after signing a memorandum of understanding with China’s Tsingshan Holding Group. Tsingshan intends to construct a plant capable of processing sulphide concentrate from Royal’s Dumont nickel project in Quebec and may consider entering either an offtake or partnership agreement or both following the completion of Dumont’s bankable feasibility study, expected by mid-year. Royal Nickel moved up 26% to 42¢.

On the negative side of the ledger, Diamond Fields International plummeted 33% to 4¢ after regulators notified the company it will be booted from the TSX on April 12 for not meeting requirements. But Diamond Fields says it will appeal that decision.

Inmet Mining and First Quantum were the top value gainers, up $3.28 to $71.80 and $1.32 to $21.74, respectively. On March 12, First Quantum said about 61.45% of Inmet’s outstanding shares had been tendered to its hostile takeover offer. It extended the offer deadline to March 21 and lowered the minimum tender condition to more than 50%.