TSX Venture Exchange, Jan. 13-17

The S&P/TSX Venture Composite Index extended its rally during the trading sessions, with a 9.79-point gain leading to a 976.34-point weekly close, which marks the Venture’s highest close since April 2011. Market enthusiasm was fuelled by stronger commodity futures, with gold and oil prices leading the weekly charge. A bullish report by the World Bank also provided mid-week optimism, as the international institution raised its global growth forecast for the first time in three years.

Gold futures hit a four-week high during the trading period, as February contracts for bullion jumped US$5.40 before closing at US$1,253.60 per oz. Crude oil also finished in the green, with March contracts for West Texas Intermediate rising around 1.4%, or US$1.29, en route to a US$94.32-per-barrel weekly close. March contracts for copper closed relatively flat at US$3.34 per lb.

Anfield Nickel led the value-added category during the week following macroeconomic news that triggered a boost in nickel pricing. Shares jumped 51¢ before closing out the trading period at $2.06 per share. Anfield has a 100% stake in the development-stage Mayaniquel nickel–laterite project, 250 km northeast of Guatemala City. Mayaniquel holds 70 million proven and probable tonnes grading 1.41% nickel for 2.2 million contained lb.

On Jan. 12 Indonesia instituted a ban on the exports of unprocessed materials that include commodities such as nickel and bauxite. The event triggered a nickel price rally, since Indonesia is the world’s foremost producer of the metal, which is used in making stainless steel.

Following the news, nickel prices hit an 11-week high, with the Goldman Sachs Group bumping its 12-month price target 7% to US$16,000 per tonne.

Junior Excelsior Mining garnered positive market attention after it released a strong prefeasibility study on its Gunnison copper-skarn project, 105 km southeast of Tucson, Ariz. The company registered a 44¢, or 400%, gain during weekly trading, en route to a 55¢ close.

On Jan. 17 Excelsior unveiled a US$285-million mine plan that uses copper extraction through in-situ recovery and a solvent extraction–electrowinning plant. The operation would produce 110 million lb. copper annually in its first 14 years, at a cash cost of US68¢ per lb.

Assuming US$2.75 per lb. copper, Gunnison’s “acid plant” model would feature a US$826-million after-tax net present value  at a 7.5% discount rate, along with a 45% internal rate of return and a 2.4-year payback period.

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