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TABLE OF CONTENTS Apr 14 - 20, 2014 Volume 100 Number 9 - 0 comments

TSX moves higher on jobs data, March 31-April 4

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2014-04-09

Strong jobs data in Canada helped lift the S&P/TSX Composite Index by 0.93% to 14,393.10. The unemployment rate in March dropped for the first time this year, falling to 6.9%, as the economy added 42,900 jobs. The majority of the new jobs went to young people in the 15- to 24-year-old age group. The news sent the Canadian dollar higher, ending the week at $1.0981 to the U.S. dollar, or US91.07¢. The gold price also ended the week higher at US$1,302.30 per oz., up 1.39%, but the S&P/TSX Global Gold Index declined 0.21% to 185.26. By contrast, the S&P/TSX Capped Diversified Metals & Mining Index climbed 0.52% to 802.26.

Osisko Mining and Yamana Gold were the most actively traded stocks, after the two companies worked out a deal to trump Goldcorp’s hostile bid for Osisko. Yamana is offering $441.5 million in cash and 95.7 million of its shares —worth $929.6 million — to buy a 50% stake in all of Osisko’s mining and exploration assets, including the Canadian Malartic mine. Under the deal, Osisko shareholders will receive $2.194 in cash, 0.2119 of a Yamana share (worth $2.06 based on its April 1 close) and one new Osisko share valued at $3.35. This puts the total offer price at $7.60 per share, or $3.4 billion, a 22% premium over Goldcorp’s bid. Goldcorp is offering 0.146 of its shares and $2.26 in cash for each Osisko share held, which, based on its April 1 close, values Osisko at $6.21 per share. Shares of Osisko advanced 47¢ to $7.38, while Yamana’s shares dropped 42¢ to $9.50 and Goldcorp’s declined 43¢ to $27.36.

Cameco posted the biggest jump, rising $1.45 per share to $26.88. The company announced it is ending its toll-conversion agreement with Springfields Fuels effective Dec. 31, 2014. The agreement was originally set to expire in 2016. Cameco signed the 10-year, toll-conversion agreement in 2005 to process up to 5 million kilograms of uranium a year at the Springfields conversion facility in Lancashire, England. Springfields receives uranium trioxide from Cameco’s Blind River uranium refinery and converts it to uranium hexafluoride (UF6), which is needed to produce fuel for light water reactors. Cameco agreed to pay Springfields $18 million to get out of the agreement early, but management said that with the current weak market for UF6 conversion, Cameco can meet its customer requirements from its conversion facility in Port Hope, Ont., and “benefit from better use of existing assets.”

Sherritt International shares advanced 60¢ to $4.14 after the company went on the offensive against an attack by dissident shareholder George Armoyan, CEO of Clarke Inc. In a letter to shareholders Sherritt said Armoyan had “no experience in Sherritt’s lines of business, a poor track record on corporate governance, no credible ideas for creating value beyond what management is already doing and a demand for a veto over potential growth plans that threatens to throw a wrench into the company’s progress.”

TSX most active issues


    Volume  
Company Symbol (000s) High Low Close Change
Osisko Mng OSK 59809 7.55 6.78 7.38 + 0.47
Yamana Gold YRI 19741 9.94 9.34 9.5 - 0.42
B2Gold BTO 17253 3.2 2.94 3.09 + 0.01
Kinross Gold K 17134 4.82 4.51 4.73 + 0.06
Barrick Gold ABX 15942 20.89 19.58 20.3 + 0.06
Goldcorp G 14066 27.99 26.84 27.36 - 0.43
Eldorado Gold ELD 11866 6.75 6.15 6.55 + 0.16
Sherritt Intl S 10133 4.22 3.55 4.14 + 0.6
Detour Gold DGC 9529 11.34 9.43 10.88 + 0.99
Eastern Platin ELR 9100 0.09 0.08 0.08 - 0.01

TSX greatest percentage change


    Volume  
Company Symbol (000s) High Low Close Change
Redzone Res REZ 659 0.05 0.03 0.04 + 166.6
Xinergy XRG 432 0.7 0.44 0.65 + 35.4
Stockport Expl SPT 177 0.06 0.06 0.06 + 33.3
MDN Inc MDN 264 0.07 0.05 0.06 + 33.3
Anaconda Mng ANX 6866 0.12 0.09 0.11 + 29.4
Mega Uranium MGA 4481 0.3 0.21 0.27 + 28.5
Formation Mtls FCO 2982 0.25 0.2 0.23 + 27.7
EMC Metals EMC 1482 0.03 0.02 0.03 + 25
American Bonan BZA 134 0.03 0.02 0.03 + 25
Mines Managmnt MGT 12 1.45 1.12 1.45 + 20.8
Eco Oro Mnls EOM 547 0.49 0.35 0.37 - 23.9
Besra Gold BEZ 295 0.03 0.03 0.03 - 16.6
Silver Bear Rs SBR 255 0.16 0.13 0.14 - 15.6
INV Metals INV 15 0.03 0.03 0.03 - 14.2
Redhawk Res RDK 968 0.29 0.24 0.24 - 14.2
Dejour Enterp DEJ 365 0.29 0.25 0.25 - 13.7
Petaquilla Mnl PTQ 1039 0.26 0.21 0.22 - 13.7
Chalice Gold M CXN 20 0.13 0.13 0.13 - 13.3
Emed Mining EMD 1253 0.2 0.17 0.17 - 12.8
Inspiration Mg ISM 191 0.12 0.1 0.11 - 12.5

TSX greatest value change


Company Symbol Change Close Change
Cameco Corp CCO 5571474 26.88 + 1.45
Detour Gold DGC 9528984 10.88 + 0.99
Walter Energy WLT 74941 9 + 0.75
Russell Metals RUS 500327 30.4 + 0.68
Sherritt Intl S 10133371 4.14 + 0.6
Teck Res B TCKB 7170394 24.44 + 0.6
Alamos Gold AGI 3518982 10.62 + 0.56
Osisko Mng OSK 59809392 7.38 + 0.47
Altius Mnrls ALS 112227 14.93 + 0.44
Labdr I-Ore Ro LIF 1732028 30.88 + 0.32
Agrium AGU 2124785 103.46 - 2.95
Potash Cp Sask POT 8915417 37.82 - 1.49
First Quantum FM 7646152 19.76 - 0.8
Silver Wheaton SLW 5727800 25.01 - 0.48
Goldcorp G 14065729 27.36 - 0.43
Yamana Gold YRI 19740969 9.5 - 0.42
Allied Nevada ANV 1202353 4.76 - 0.4
Energy Fuels EFR 237728 10.13 - 0.4
Agnico-Eagle AEM 3737159 33.92 - 0.37
Kirkland Lk Gd KGI 1184576 3.33 - 0.28


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