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TABLE OF CONTENTS Aug 18 - 24, 2014 Volume 100 Number 27 - 0 comments

TSX ends in negative territory, Aug. 5-8

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2014-08-13

The S&P/TSX Composite Index tumbled during the shortened trading week, losing nearly 19 points to 15,196.31. The S&P/TSX Capped Diversified Metals & Mining Index fell 15.57 points to 903.70. But gold miners stayed strong, with the S&P/TSX Global Gold Index climbing 4.79 points to 203.31. The spot price for gold added US$14.90 per oz. to close at US$1,309.10.

Imperial Metals was unsurprisingly the week’s biggest percentage loser after a tailings breach at its Mount Polley copper–gold mine in B.C. The dam at the tailings pond collapsed, spilling nearly 15 million cubic metres of waste water into nearby waterways. This amount is equivalent to 6,000 Olympic-sized swimming pools. Given the enormity of the spill, it will take a substantial time and money to clean up the sludge and debris. The cause of the breach is still under investigation. The producer lost 38% to close at $10.36.

It was a good week for Richmont Mines. The Montreal-based gold miner reported second-quarter adjusted profits of $5.7 million, or 12¢ per share, up from a net loss of $1.1 million, or 3¢ per share, in the same period last year. It recorded quarterly operating cash flows of $13.4 million and record revenues of $39 million. Given the strong performance to date, Richmont has bumped its annual production guidance to 75,000 to 85,000 oz. gold, from 70,000 to 80,000 oz. previously. It has also increased its ownership in the Island gold mine in Ontario to 100%.

Debt-burdened Mercator Minerals saw heavy trading volumes after reporting a second-quarter adjusted profit of $5.2 million, or 2¢ per share, up from an adjusted net loss of $10 million, or 3¢ per share, a year ago. Revenues climbed 9% to $69.8 million. That increase was largely due to higher realized molybdenum and copper prices, slightly offsetting the lower metal sales.

Mercator says it won’t release a production forecast for the rest of the year, as it’s considering its options after Russia’s Intergeo abandoned a takeover bid for the company, leaving the junior with its acute debt problems. The firm is looking at several alternatives, including selling the company or part of its assets, or merging with another firm. The firm advanced 18% to 7¢, on 19.8 million shares traded.

Royal Gold was the top value gainer, advancing $3.84 to $87.09. The precious metals royalty and streaming firm reported a strong June quarter, closing off its fiscal 2014 year. Quarterly net income increased 63% year-over-year to 26¢ per share, as both revenues and production increased. Royal Gold ended fiscal 2014 with a net income of $62.6 million, or 96¢ per share, down 12% from a year ago. It attributed that drop to the average gold price plunging 19% to $1,296 per oz. in fiscal 2014.

TSX most active issues

    Volume Week
    (000s) High Low Close Change
Mercator Mnls ML 19792 0.07 0.04 0.07 + 0.01
Carpathian Gld CPN 16874 0.03 0.02 0.03 - 0.01
B2Gold BTO 10012 2.96 2.82 2.93 + 0.05
Semafo SMF 9389 5.48 4.34 5.3 + 0.65
Eldorado Gold ELD 9079 9.23 8.39 8.99 + 0.34
Yamana Gold YRI 8343 9.63 9.14 9.47   0
Talon Metals TLO 8037 0.34 0.29 0.33 + 0.02
Barrick Gold ABX 7763 20.83 19.43 20.51 + 0.62
Ram Power RPG 7624 0.03 0.02 0.02   0
Trevali Mng TV 7422 1.41 1.31 1.33 + 0.01

TSX greatest percentage change

Jayden Res JDN 74 0.15 0.1 0.15 + 50
Richmont Mines RIC 1198 2.6 1.66 2.32 + 44.1
Rio Novo Gold RN 101 0.12 0.09 0.12 + 33.3
Black Iron BKI 395 0.15 0.12 0.15 + 20
Dejour Enterp DEJ 427 0.35 0.31 0.34 + 19.3
INV Metals INV 349 0.33 0.27 0.31 + 19.2
Mercator Mnls ML 19792 0.07 0.04 0.07 + 18.1
Chieftain Mtls CFB 78 0.3 0.25 0.28 + 16.6
Xtra-Gold Res XTG 59 0.3 0.27 0.3 + 15.3
Candente Gold CDG 99 0.04 0.04 0.04 + 14.2
Imperial Metal III 4010 10.96 9.06 10.36 - 38.3
Liberty Silver LSL 71 0.06 0.04 0.04 - 36.3
Marengo Mng MRN 1182 0.01 0.01 0.01 - 33.3
Nuinsco Res NWI 6613 0.02 0.01 0.02 - 25
Petaquilla Mnl PTQ 884 0.09 0.07 0.07 - 23.5
Cerro Grande M CEG 131 0.04 0.04 0.04 - 22.2
MDN Inc MDN 445 0.07 0.06 0.06 - 20
Eco Oro Mnls EOM 247 0.3 0.25 0.25 - 18.3
Carpathian Gld CPN 16874 0.03 0.02 0.03 - 16.6
Mediterrn Res MNR 3449 0.04 0.02 0.03 - 16.6

TSX greatest value change

    Week
    Change Close Change
Royal Gold RGL 18076 87.09 + 3.84
Franco-Nevada FNV 1911705 64.1 + 2.16
Agnico-Eagle AEM 3284551 42.23 + 1.08
Labdr I-Ore Ro LIF 823487 31.43 + 0.75
Richmont Mines RIC 1197916 2.32 + 0.71
Semafo SMF 9389373 5.3 + 0.65
Silver Wheaton SLW 4638925 29.14 + 0.63
Barrick Gold ABX 7763058 20.51 + 0.62
Tahoe Res THO 611569 29.78 + 0.54
Silver Std Res SSO 1406757 10.41 + 0.52
Imperial Metal III 4009572 10.36 - 6.44
Sandstorm Gold SSL 1970993 6.44 - 1.07
Primero Mng P 2429953 7.92 - 0.66
North Am En Pa NOA 199971 7.3 - 0.56
Horizns G Bear HGD 2552262 11.03 - 0.53
HudBay Minls HBM 4931678 11.19 - 0.43
Altius Mnrls ALS 150630 14.27 - 0.42
Potash Cp Sask POT 3992348 37.85 - 0.38
Sherritt Intl S 4981105 4 - 0.34
Teck Res B TCKB 3695171 25.66 - 0.33

 



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Properties in This Story

Mount Polley Mine



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