The S&P/TSX Composite Index shook off the bad performance of markets south of the border, as stronger commodity prices bolstered the resource-weighted index.
It finished the period up 185 points to 12,736.92, as renewed unrest in Egypt triggered fears over the control of the Suez Canal and the Sumed pipeline, which are essential to transporting Middle East oil.
The price for gold was up US$58 to US$1,371.00 per oz., while the price for copper was up 6¢ to US$3.36 per lb. The movements helped the S&P/TSX Capped Metals & Mining Index gain 34 points to finish at 811.62, while the S&P/TSX Global Gold Index was up 17 points to 204.40 points.
The improved performance of commodities also meant good news for the Canadian dollar, as it improved to US97.05¢.
The period also saw some M&A activity, as Sandstorm Gold bid to acquire the rest of Premier Royalty. Sandstorm made an all-share offer that values the 40% of Premier it doesn’t already own at $28 million. The deal values Premier’s shares at 89¢ — a 16% premium to their 20-day, volume-weighted average price of 77¢. If successful, Sandstorm would scoop up the $33.5 million in cash on Premier’s balance sheet, a diversified portfolio of assets and its deal team based in Toronto.
Cardero Resources received some good news from the New York Stock Exchange, and its share price responded accordingly. At the end of June the NYSE MKT told Cardero that its impaired financial state had it sitting below its continued listing standards, and threatened it with a delisting. The latest good news is that the exchange has accepted Cardero’s plan of compliance and given it until Nov. 29 to regain compliance with the continued listing standards. Cardero shares were up 72% to 16¢ for the period.
Orbite Aluminae’s shares fell after it announced it needs to issue more equity to finish the construction and optimization of its high-purity alumina plant in Quebec. A previously arranged financing was delayed in July. Orbite’s shares were off 26% to 49¢, continuing a downward trajectory that began with the release of its second-quarter results on Aug. 9. It was then that the company said it would need more capital to finish its first alumina plant. Projected costs for the plant escalated to $106 million from $85 million this year. The company has just $8.8 million in its treasury.
Renaissance Gold saw its market cap increase by 48%, as its stock finished the week at 30¢ per share. The company said trench sampling and drilling results confirm a shallow zone of gold-silver mineralization at its Sinter project in Nevada. The Sinter property lies in the northern part of the Velvet District near other shallow epithermal gold prospects at RenGold’s Bunce property and at the historic Velvet mine.
TSX most active issues
|Potash Cp Sask||POT||17648||32.4||30.91||31.41||+||0.56|
TSX greatest percentage change
|Lake Shore Gld||LSG||11474||0.55||0.36||0.52||+||48.5|
|Intl Tower Hil||ITH||352||0.83||0.53||0.77||+||45.2|
|Kirkland Lk Gd||KGI||2995||4.
|Rio Novo Gold||RN||760||0.09||0.06||0.07||–||27.7|
|Horizns G Bear||HGD||4058||19.04||14.45||15.38||–||24.3|
TSX greatest value change
|Horizns G Bull||HGU||7171959||12.21||+||2.6|
|Horizns G Bear||HGD||4058017||15.38||–||4.95|
|North Am En Pa||NOA||37510||5.17||–||0.18|