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TABLE OF CONTENTS Jul 28 - Aug 3, 2014 Volume 100 Number 24 - 0 comments

TSX gains despite geopolitical woes, July 14-18

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2014-07-23

The S&P/TSX Composite Index ended the week in positive territory, advancing 141.07 points to 15,266.57, as investors shrugged off war in the Middle East and Ukraine, and focused on corporate earnings. The S&P/TSX Capped Diversified Metals & Mining Index dropped 34.55 points to 891.63, while the S&P/TSX Global Gold Index slipped 3.44 points to 200.48. The spot price for gold fell US$29 to US$1,310 per oz.

Besra Gold got a boost after its board approved a subscription agreement from Victory Corp. Group of Switzerland. Under the agreement, VCG, or its affiliates, will buy 250 million Besra shares at US5.7¢ apiece for gross proceeds of US$14.25. The net proceeds will repay the outstanding interest under Besra’s convertible and gold-linked notes, and normalize production at its Phuoc Son and Bong Mieu gold mines in Vietnam. The investment is set to close on July 31, after which VCG will become Besra’s largest shareholder with a 40% stake. Besra, which is facing a de-listing review, rose 14% to 4¢.

Copper-focused Mercator Minerals hit a rough patch, with its shares plunging 41% to 5¢ after reporting that a proposed life-saving business combination with Intergeo, a Russian-based resource firm, might not close. The Vancouver-based junior noted that the Russian Federation Anti-Monopoly Services wanted to extend its review of the merger by another two months, and that Intergeo said it would not push out the completion deadline of the deal beyond Aug. 1, 2014. 

Analysts say the Russian regulators will not finish their review in time, leaving Mercator with the debt problems it had before the deal was announced last December. Mercator says it’s seeking other alternatives. 

Laurentian Bank Securities analyst Christopher Chang estimates the junior has nearly US$114 million of debt due in the next year. He says another mid-sized base metals firm, such as Capstone Mining, might want to buy Mercator’s assets, which include the Mineral Park copper mine in Arizona, and two exploration projects in Mexico.

B2Gold saw heavy trading after missing its second-quarter and six-month production targets due to a change-out at its Masbate semi-autogenous grinding mill. It recorded 85,704 oz. gold produced in the quarter, and 182,007 oz. in the half-year — 5% and 6% below budget. But the firm has kept its 2014 production guidance of 395,000 to 420,000 oz. at operating cash costs of US$667 to US$695 per oz. B2Gold operates three gold mines: Masbate in the Philippines, and La Libertad and El Limon in Nicaragua. It ended the week at $2.94, down 15¢, on 24.9 million shares traded.

Barrick Gold also saw heavy trading after announcing CEO Jamie Sokalsky would resign come September, with executives Kelvin Dushnisky and Jim Gowans serving as co-presidents. John Thornton is the company’s new chair. Barrick slipped 9¢ to $20.62, on 15 million shares traded.

TSX most active issues


    Volume  
Company Symbol (000s) High Low Close Change
B2Gold BTO 24895 3.06 2.9 2.94 - 0.15
Barrick Gold ABX 15126 20.65 19.69 20.62 - 0.09
Yamana Gold YRI 14097 9.09 8.62 8.91 - 0.15
Lundin Mng LUN 13035 6.57 5.95 6.09 - 0.18
Eldorado Gold ELD 10955 8.3 7.68 8.08 - 0.2
Romarco Mnrls R 10783 0.88 0.78 0.83 - 0.04
Torex Gold TXG 10379 1.67 1.57 1.6 - 0.06
Eastern Platin ELR 10163 0.12 0.1 0.11 - 0.01
Stornoway Diam SWY 10111 0.74 0.67 0.7 - 0.02
Mercator Mnls ML 9781 0.09 0.05 0.05 - 0.04

TSX greatest percentage change


    Volume  
Company Symbol (000s) High Low Close Change
CaNickel Mng CML 16 0.31 0.24 0.31 + 31.9
Canarc Res CCM 459 0.11 0.07 0.1 + 25
Xinergy XRG 312 0.48 0.33 0.4 + 21.5
Foraco Intl FAR 97 0.58 0.48 0.58 + 18.3
Dejour Enterp DEJ 31 0.28 0.23 0.28 + 17
New Pac Metals NUX 27 0.35 0.3 0.35 + 16.6
Orocobre ORL 73 2.89 2.54 2.88 + 16.1
Chieftain Mtls CFB 81 0.22 0.17 0.22 + 15.7
EMC Metals EMC 1329 0.11 0.1 0.11 + 15.7
Besra Gold BEZ 1307 0.04 0.04 0.04 + 14.2
Mercator Mnls ML 9781 0.09 0.05 0.05 - 41.1
Forbes & Man C FMC 47 0.1 0.08 0.09 - 39.2
Petaquilla Mnl PTQ 2278 0.11 0.07 0.07 - 26.3
Levon Res LVN 2985 0.42 0.33 0.34 - 22
Oracle Mng OMN 749 0.14 0.09 0.1 - 20.8
Perseus Mng PRU 3539 0.51 0.44 0.46 - 20.1
TVI Pacific TVI 842 0.03 0.02 0.02 - 20
Hard Creek Ni HNC 19 0.05 0.04 0.05 - 18.1
Candente Gold CDG 441 0.06 0.04 0.05 - 18.1
Crocodile Gold CRK 5595 0.28 0.22 0.23 - 17.8

TSX greatest value change


Company Symbol Change Close Change
Agrium AGU 1535399 98.22 + 3.41
Altius Mnrls ALS 362350 13.95 + 1.49
Cameco Corp CCO 4739412 21.9 + 1.48
Agnico-Eagle AEM 5929268 44.82 + 0.96
Russell Metals RUS 710765 35.15 + 0.68
Orocobre ORL 73311 2.88 + 0.4
Potash Cp Sask POT 5019822 38.73 + 0.39
Horizns G Bear HGD 4412161 11.41 + 0.32
Silver Std Res SSO 2075156 10.14 + 0.28
Labdr I-Ore Ro LIF 754557 30.05 + 0.24
Franco-Nevada FNV 2608433 60.45 - 2.08
First Quantum FM 7966349 24.82 - 1.43
Central Gold-T GTU_U 10149 49.85 - 1.15
Royal Gold RGL 26673 83 - 1.1
Teck Res B TCKB 8964327 25.23 - 0.76
Silver Wheaton SLW 7229589 28.59 - 0.69
Argonaut Gold AR 7890262 4.19 - 0.66
Alamos Gold AGI 1577431 10.29 - 0.57
Central Fund CEFA 397025 15.36 - 0.54
Mag Silver MAG 1386760 9.69 - 0.5


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