TSX tumbles, March 9-13

Canada’s benchmark S&P/TSX Composite Index index fell during the trading week, losing 1.5% to close at 14,731.50 points. The S&P/TSX Global Gold Index dropped 1.8% to 157.90, as the spot price for gold gave back US$10 to end at US$1,158.60 per oz. The S&P/TSX Capped Diversified Metals & Mining Index tumbled 3.4% to 658.73.

Eastmain Resources soared 33% to 50¢ per share on no news. The company released a statement confirming its management “is not aware of any corporate development” that caused its shares to trade higher. Eastmain owns a 100% interest in the Eau Claire and Eastmain gold deposits in the James Bay district of Quebec. Its goal for 2015 is to calculate a resource estimate for Eau Claire. The firm has budgeted $4 million for exploration this year and 21,500 metres of drilling at its properties. 

Orbite Aluminae shares jumped 24% to 36¢ after the firm received a notice of allowance for its patent application from the United States Patent and Trademark Office for its red-mud treatment process, making this its second confirmed patent. In January, it got a notice of allowance by the Canadian Intellectual Property Office. The company’s patented process uses red mud — a waste produced by the traditional Bayer process to refine bauxite and obtain alumina — as a feedstock to extract rare earth elements, alumina, magnesium oxide and titanium oxide. Orbite is finalizing its first commercial high-purity alumina production plant in Cap-Chat, Que. 

Royalty firm Altius Minerals was one of the top value gainers, adding 70¢ per share to close at $12.70, after reporting financial results for the third quarter ended Jan. 31, 2015. Quarterly revenue was $7.6 million, compared to $2.7 million for the same period last year. The firm reported a headline loss of $5.7 million, or 18¢ per share, versus a $2,000 loss a year ago. Adjusted earnings were 3¢ per share, excluding unrealized investment and carrying value adjustments of $6.8 million, largely related to its 25% equity investment in Alderon Iron Ore. Analysts on average had expected adjusted earnings of 1¢ per share. On March 5, Altius reported it is acquiring Callinan Royalties to create a larger and more diversified royalty firm. Callinan’s shareholders are set to vote on the deal in late April 2015. 

Dominion Diamond added 50¢ per share to finish at $21.87, after publishing an updated technical report for its Ekati diamond mine in the Northwest Territories. The report upgraded resources and reserves at the Jay pipe and included the mine plan, BMO analyst Ed Sterck writes. The Jay pipe has 84.6 million carats in reserves, based on 45.6 million tonnes grading 1.9 carats per tonne. It makes up 79% of Ekati’s 106-million-carat reserve. The firm remains BMO’s top pick in the diamond space. Sterck has upgraded his target to $27 per share from $25, and has an “outperform” rating. 


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