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TABLE OF CONTENTS Feb 10 - 16, 2014 Volume 99 Number 52 - 0 comments

Toronto Stock Exchange, Jan. 27-31

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2014-02-05

The Canadian market fell slightly during the week after the latest move by the U.S. Federal Reserve to cut its stimulus program by another US$10 billion per month, given signs of improvement in the U.S. economy.

The S&P/TSX Composite Index dipped 22.82 points to close at 13,717.76. Despite the spot gold price sliding US$23.10 per oz. to US$1,245.90, the S&P/TSX Global Gold Index stayed relatively flat at 182.37. The S&P/TSX Capped Diversified Metals & Mining Index lost 4.58 points to 815.49.

Teranga Gold was the week’s most active stock after the Toronto-based firm released solid fourth-quarter and year-end results from Sabodala in Senegal, its sole gold mine.

Teranga produced 52,368 oz. gold in the last three months of 2013, bringing its full-year output to 207,204 oz., near the high end of its 190,000 to 210,000 oz. guidance. Total cash costs were also impressive, averaging US$711 per oz. for the December quarter and US$641 per oz. for the year, beating the forecast of US$650 to US$700 per oz. All-in sustaining costs per oz. were US$850 in the quarter and US$1,033 per oz. for the year, within expectations. This year Teranga is targeting production of 220,000 to 240,000 oz. at costs similar to last year.

Teranga is working on developing a single mine plan for its newly acquired Oromin Joint Venture Group deposits, which are beside Sabodala. The stock added 20¢ to close at 93¢ on 24.3 million shares traded.

Rivals Osisko Mining and Goldcorp also saw heavy trading. Montreal-based Osisko gained 12¢ to end at $6.68 on 19.9 million shares traded, while Vancouver-based Goldcorp advanced $1.19 to $27.79, as 17.4 million shares changed hands. 

On Jan. 29, Osisko filed its directors’ circular in response to the hostile takeover that Goldcorp made on Jan. 14, urging shareholders to reject the offer. In a separate release that day, Osisko announced it’s taking legal action against Goldcorp, alleging the senior “misused confidential information” when launching its offer. Osisko wants the Quebec Superior Court to invalidate the bid.

Meanwhile, Goldcorp has dismissed those allegations, saying it will defend its position and bid for Osisko.

Franco-Nevada topped the week’s value gainers, adding $2.14 to end at $54.05, after updating the market on First Quantum’s Cobre Panama copper–gold–molybdenum project in Panama.

In 2012 Franco-Nevada agreed to provide US$1 billion in funds after spending US$1 billion developing Cobre Panama, in exchange for a precious-metals stream.  

First Quantum now intends to build a larger operation there, averaging 70 million tonnes a year for the first decade. Capital costs are estimated at US$6.4 billion, which is up from US$2 billion previously. First production has been delayed to late 2017 from 2016.

TSX most active issues


    Volume  
Company Symbol (000s) High Low Close Change
Teranga Gold TGZ 24272 0.93 0.7 0.93 + 0.2
Baja Mng BAJ 21517 0.07 0.05 0.06 + 0.01
Osisko Mng OSK 19903 6.89 6.42 6.68 + 0.12
Goldcorp G 17384 27.88 25.79 27.79 + 1.19
Barrick Gold ABX 14461 21.92 20.48 21.46 + 0.41
Kinross Gold K 13775 5.22 4.99 5.11 - 0.04
Potash Cp Sask POT 13197 35.93 33.61 34.92 - 0.27
Orbite Alumnae ORT 12842 0.4 0.33 0.4 + 0.05
North Am Pall PDL 12764 0.79 0.44 0.45 - 0.27
B2Gold BTO 12526 2.69 2.49 2.63 - 0.04

TSX greatest percentage change


    Volume  
Company Symbol (000s) High Low Close Change
Rio Novo Gold RN 602 0.12 0.07 0.11 + 57.1
Xinergy XRG 525 0.45 0.3 0.45 + 50
Dejour Enterp DEJ 242 0.23 0.15 0.21 + 31.2
Marathon Gold MOZ 243 0.33 0.28 0.32 + 28
Teranga Gold TGZ 24272 0.93 0.7 0.93 + 27.4
American Bonan BZA 1551 0.03 0.02 0.03 + 25
Hard Creek Ni HNC 261 0.06 0.05 0.06 + 22.2
Braeval Mng BVL 846 0.09 0.07 0.09 + 21.4
Corvus Gold KOR 615 2.06 1.63 1.96 + 20.2
Mediterrn Res MNR 50 0.03 0.03 0.03 + 20
North Am Pall PDL 12764 0.79 0.44 0.45 - 37.3
Nuinsco Res NWI 3110 0.03 0.02 0.02 - 33.3
Veris Gold VG 11087 0.3 0.1 0.21 - 31.6
EMC Metals EMC 5696 0.04 0.02 0.03 - 28.5
Verde Potash NPK 675 0.82 0.53 0.54 - 27
Prophecy Coal PCY 667 0.11 0.09 0.09 - 22.7
Elgin Mng ELG 911 0.25 0.18 0.19 - 20.8
Evolving Gold EVG 327 0.05 0.04 0.04 - 20
Besra Gold BEZ 558 0.05 0.04 0.04 - 20
Inspiration Mg ISM 445 0.09 0.07 0.08 - 20

TSX greatest value change


Company Symbol Change Close Change
Franco-Nevada FNV 3320925 54.05 + 2.14
Goldcorp G 17384042 27.79 + 1.19
Detour Gold DGC 12080710 7.16 + 1.01
Tahoe Res THO 1074030 19.78 + 0.57
Royal Gold RGL 44458 62.24 + 0.5
Agnico-Eagle AEM 5687283 34.66 + 0.49
Barrick Gold ABX 14461133 21.46 + 0.41
Energy Fuels EFR 245605 8.79 + 0.4
Corvus Gold KOR 614809 1.96 + 0.33
Augusta Res AZC 1121916 2 + 0.25
Newmont Mng NMC 18628 23.97 - 3.5
Agrium AGU 2047148 97.11 - 1.67
Coeur Mng CDM 69117 11.34 - 0.79
Cameco Corp CCO 6857715 23.67 - 0.56
Pretium Res PVG 1580045 6.52 - 0.54
Seabridge Gold SEA 184479 8.97 - 0.44
Mag Silver MAG 1231378 6.84 - 0.39
Dynacor Gold M DNG 2531185 1.59 - 0.39
Central Fund CEFA 278655 14.92 - 0.37
First Majestic FR 2138011 11.63 - 0.31


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Properties in This Story

Cobre Panama Project
Sabodala Mine



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