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TABLE OF CONTENTS Apr 7 - 13, 2014 Volume 100 Number 8 - 0 comments

Gold miners weigh on TSX, March 24-28

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2014-04-02

Weaker gold prices and slumping tech stocks outweighed signs of an improving economy south of the border, and the S&P/TSX Composite Index fell 100 points to 14,178.84 points for the period.

The rosier picture for the U.S. economy was based on stronger gross domestic product numbers and fewer jobless claims. Nevertheless, the Canadian dollar gained on its U.S. counterpart, rising 0.24¢ to finish the period at US90.46¢.

Gold’s strength to start the year disappeared when its price dropped US$42 to US$1,293.80 per oz., while the S&P/TSX Global Gold Index fell 10 points to 185.65.

Thankfully for metal investors the base-metal camp offered better results, with the S&P/TSX Capped Diversified Metals & Mining Index up 8 points to 798.09, and the copper price up 9¢ to US$3.04 per lb.

Avnel Gold Mining was the period’s largest gainer, as its stock climbed 60% to finish at 28¢. The momentum came from a resource estimate and preliminary economic report for its Kalana gold deposit in southwest Mali. The deposit has 1.25 million oz. in the indicated category, and the economic study showed an after-tax net present value of US$194 million and a 53% IRR using a US$1,110 per oz. gold price. It would cost US$188 million to build a mine turning out an average 138,000 oz. in the first four years, and 98,000 oz. each year over the remaining 14-year mine life.

Stornoway Diamond addressed rumours that had its share price volatility rising recently. The company confirmed it was negotiating a financing plan for its Renard diamond project in north-central Quebec. The market liked what it heard, as the company’s stock gained 19% to $1.08, even though it warned investors that negotiations could be fruitless.

Banro couldn’t find similar traction despite posting the first reserve estimate for its Namoya gold mine in the Democratic Republic of the Congo. The calculation bolsters reserves by 53% to 2.36 million oz. Namoya is the second gold mine along the Twangiza–Namoya gold belt in the DRC that is wholly controlled by Banro. The company converted 73% of Namoya’s 1.83 million oz. gold in measured and indicated into reserves, but wasn’t rewarded — its share price fell 2¢ to finish up at 56¢.

Lydian International had worse results. The company closed a private placement financing with the International Finance Corp. for 1.7 million shares at $1 per share. Lydian will use the money to finish a feasibility study at its Amulsar project in Armenia. The market focused on the dilution, which will be amplified when it closes a deal with the European Bank for Reconstruction and Development that will see it issue another 3 million shares. Lydian shares were off 23% to $1.05.

TSX most active issues


    Volume  
Company Symbol (000s) High Low Close Change
Kinross Gold K 38601 5.32 4.42 4.67 - 0.61
B2Gold BTO 24742 3.11 2.84 3.08 - 0.11
Orbite Alumnae ORT 21344 0.38 0.19 0.32 - 0.01
Capstone Mng CS 16026 3.02 2.69 2.97 + 0.19
Carpathian Gld CPN 15678 0.04 0.03 0.03 + 0.01
Goldcorp G 13517 29.69 26.9 27.79 - 1.96
Barrick Gold ABX 12016 21.53 19.58 20.24 - 1.44
Osisko Mng OSK 11497 7.54 6.77 6.91 - 0.77
San Gold Res SGR 10131 0.18 0.15 0.16 - 0.04
Eldorado Gold ELD 9315 6.99 6.2 6.39 - 0.56

TSX greatest percentage change


    Volume  
Company Symbol (000s) High Low Close Change
Avnel Gold AVK 194 0.44 0.16 0.28 + 60
Evolving Gold EVG 4882 0.02 0.02 0.02 + 33.3
Carpathian Gld CPN 15678 0.04 0.03 0.03 + 20
Stornoway Diam SWY 1795 1.09 0.9 1.08 + 18.6
Emed Mining EMD 1957 0.2 0.17 0.2 + 14.7
Dejour Enterp DEJ 3420 0.32 0.28 0.29 + 13.7
Horizns G Bear HGD 2967 15.33 12.93 14.2 + 12.3
TriAusMin TOR 2512 0.06 0.05 0.05 + 11.1
Victory Nickel NI 5009 0.08 0.06 0.06 + 9
Strateco Res RSC 1379 0.06 0.05 0.06 + 9
Redzone Res REZ 36 0.02 0.02 0.02 - 50
Niocan Inc NIO 63 0.13 0.11 0.11 - 31.2
Lachlan Star LSA 626 0.28 0.19 0.2 - 31
TVI Pacific TVI 1000 0.02 0.02 0.02 - 25
Red Cresc Res RCB 1963 0.03 0.02 0.02 - 25
SouthGobi Res SGQ 285 0.74 0.47 0.65 - 24.4
Shore Gold SGF 1709 0.35 0.24 0.24 - 23.8
Mega Uranium MGA 4298 0.29 0.21 0.21 - 23.6
Lydian Intl LYD 834 1.35 1.05 1.05 - 23.3
Goldgroup Mng GGA 840 0.29 0.18 0.26 - 21.2

TSX greatest value change


Company Symbol Change Close Change
Horizns G Bear HGD 2967385 14.2 + 1.56
Potash Cp Sask POT 5806672 39.31 + 0.52
North Am En Pa NOA 88891 7.92 + 0.3
Agrium AGU 1423362 106.41 + 0.25
Capstone Mng CS 16025588 2.97 + 0.19
Stornoway Diam SWY 1795257 1.08 + 0.17
Guyana Gldflds GUY 1998880 2.67 + 0.17
Tanz Roy Exp TNX 188700 2.65 + 0.13
Avnel Gold AVK 194450 0.28 + 0.11
NGEx Res NGQ 208930 1.83 + 0.09
Royal Gold RGL 57711 70.26 - 6.6
Silver Wheaton SLW 7930045 25.57 - 2.65
Agnico-Eagle AEM 3813243 34.29 - 2.46
Goldcorp G 13517391 27.79 - 1.96
Barrick Gold ABX 12016102 20.24 - 1.44
Silver Std Res SSO 1049040 11.3 - 1.42
Horizns G Bull HGU 4955317 9.24 - 1.37
Pan Am Silver PAA 1156496 14.43 - 1.31
Alamos Gold AGI 7497058 10.06 - 1.23
First Majestic FR 1306727 11.03 - 1.22


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Related News
Banro finds 'relief' in new financing plan
US stocks climb, Aug. 11-15
US stocks drop, July 7-11
Related Press Releases
Stornoway Announces First Quarter 2015 Results
Lydian Announces Positive Results From Updated Feasibility Study for the Amulsar Gold Project
Avnel Gold Announces Management Addition and Private Placement
 



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