The S&P/TSX Composite Index took some time to catch its breath, as the index ended its strong run and fell 84 points to 13,395.40 points for the period. The loss of momentum came after data south of the border showed weaker-than-expected numbers from the housing market.
While the overall market was down, there were some positives, including stronger-than-expected third-quarter economic growth in Canada — it grew at a 2.7% annualized rate over the third quarter compared to the expected 2.5%. Higher commodity prices also lifted investors’ spirits, and the S&P/TSX Global Gold Index climbed 3 points to finish at 161.61. The boost in valuemirrored stronger prices for the yellow metal, as its price was US$9 higher at US$1,250.60 per oz.
The S&P/TSX Capped Diversified Metals & Mining Index, however, couldn’t duplicate gold’s success, and it was down 15 points to 748.80, despite the copper price holding strong, up 2¢ to US$3.23 per lb.
It was all about rebounds for some in the mining space, as both Colossus Minerals and Augusta Resource came back from big losses to their equity values. Colossus, which is trying to develop the Serra Pelada polymetallic project in Brazil, has been beset with delays at the site, and just a few weeks ago announced it had replaced its CEO. The announcement coincided with a 46% drop in value, but this period the company’s share price surged back up 87.5%, and finished the period trading for 30¢ on no news.
Augusta shares were up 48.7% on word that it finished its environmental-impact statement. The company’s shares were hurt in the previous period when a non-governmental organization leaked a report that purportedly showed the company in danger of not getting its environmental permit.
Troubles removing illegal miners from its Buritica project in Colombia affected Continental Gold’s stock, as it fell 8% to finish the period at $2.54. The difficulty came when military and police officers tried to remove thousands of illegal miners from the property and violence broke out. Two of the miners were killed and both sides were suffered injuries. Reports out of the country say the situation has since calmed, while removing the remaining miners continues. Scotiabank has since downgraded its rating on Continental and its stock price target.
continued its recent strong run, as its shares moved up 27% to 43¢. The company recently announced a financing deal with RMB Resources that will bring it enough capital to finance its bankable feasibility study for its flagship Goliath gold project in northwestern Ontario. Treasury expects to submit its environmental-impact study early next year. Goliath hosts global resources of 1.7 million oz. gold.
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