The S&P/TSX Venture Composite Index lost 1.7%, or 20.16 points, en route to a 1,185.65-point close. Canadian stocks were weighed down by falling commodity prices, and further economic uncertainty in Europe.
Finance ministers from the G20 nations continued meetings in Moscow that focused on manufactured currency devaluations amongst major global economies. Meanwhile, Eurostat revealed that the EU economy contracted 0.6% in the fourth quarter of 2012, marking the third consecutive quarterly loss for the eurozone and the largest decline since first-quarter 2009.
Commodities led markets downward, with gold stocks on a major decline as April contracts for bullion dropped US$26 to close out the week at US$1,609.50 per oz.
Orko Silver was a big name on both the trade activity and value-added side of the ledger. Orko traded 20.5 million shares this week after news broke that a bidding war had erupted over its La Preciosa silver project in Durango State, Mexico, between producers Coeur d’Alene Mines and First Majestic Silver. Orko jumped 25¢ en route to a $2.50-per-share weekly close.
First Majestic tabled a friendly bid in December before its stock dropped roughly 20% and impacted the value of its stock-heavy offer — now valued at around $307 million. Under Coeur’s offer, Orko shareholders can choose to exchange shares under three options: 0.0815 of a Coeur share and 70¢ in cash; 0.1118 of a share; or $2.60 in cash. The cash and share components are capped at $100 million and 11.6 million shares. Coeur’s offer is valued at roughly $384 million, and First Majestic has until Feb. 19 to submit a counter offer.
Not surprisingly, junior gold stocks were hit hard by the drop in gold prices, with three Vancouver-based companies registering the largest losses on the venture.
Chesapeake Gold dropped 63¢ before ending at $8.57 per share. Chesapeake has lost 14%, or $1.42 per share, since announcing results of a prefeasibility study on its Metates gold-silver project in Durango State on Jan. 31.
Two Yukon-focused explorers also had a rough week on the back of declining gold prices. ATAC Resources lost 37¢ en route to a $1.25 close. The company holds 100% in the Carlin-style Rackla gold project between the regional-scale Dawson thrust and Kathleen Lakes fault in the Yukon.
Kaminak Gold similarly struggled this week, dropping 27¢ en route to a $1.01-per-share close. The company is working on its multi-million ounce Coffee gold project in the Yukon’s White Gold district, and has dropped 27%, or 37¢, since the end of January.
TSX-V most active issues
|Rock Tech Lith||RCK||9407||0.05||0.03||0.03||0|
|Golden Dory Rs||GDR||8196||0.04||0.02||0.03||0|
|New Guinea Gld||NGG||7922||0.01||0.01||0.01||0|
TSX-V greatest percentage change
|Caribou King R||CKR||1937||0.05||0.03||0.05||+||50|
|Copper Ck Gold||CPV||279||0.01||0.01||0.01||–||50|
|Red Pine Expl||RPX||167||0.02||0.01||0.01||–||50|
|Aura Silver Rs||AUU||741||0.02||0.02||0.02||–||40|
|Altan Rio Mnls||AMO||85||0.12||0.09||0.09||–||40|
TSX-V greatest value change
|Horizns G Bear||HGD||552001||13.29||+||1.4|
|North Am En Pa||NOA||124960||4.4||+||0.58|
|Coeur d Alene||CDM||467853||21.23||–||2.08|