Global markets continued to be a study in volatility and the TSX Composite Index was no exception as it fell over the June 1-7 period.
Still jittery over the near bankruptcy of Greece, Hungary managed to stoke investor fears by comparing its financial situation to Greece’s. And while experts contend that Hungary is in no where near as bad shape, markets still fell on the rash comments.
But just as fears over the European situation was re-submerging global markets, it continued to be good days for gold. The yellow metal rose higher in value taking the Global Gold Index along for the ride. Gold play’s like Franco-Nevada, Greystar Resources and Gabriel Resources, did especially well, the latter two thanks to some positive news releases.
Things, however, weren’t quite as rosy for diversified miners as evidenced by the slump in the Capped Metals & Mining Index. Base metal prices and the stocks of companies that produce them continued to be hurt by fears that the global economic recovery has been stalled by the recent mess in Europe and signs that China’s growth is cooling.
The previously mentioned good news for Greystar Resources’ came by way of the Colombian government reversing a recent decision to invalidate the environmental impact assessment for its flagship Angostura gold project. Word of the reversal sent Greystar shares up 30% for the period to $4.87. Greystar were hit hard by the Government’s initial decision to implement a ban on mining above the 3,200 metres – an elevation where Greystar needs to work to make Angostura an economic project.
An analyst upgrade and the announcement of a new chief executive officer coincided with renewed enthusiasm for Gabriel Resource’s stock. The company that is looking to develop the Rosia Montana project in Romania saw its shares climb 15% to $4.52.
Macquarie Research upgraded Gabriel from “Underperform” to “Neutral.” after the company received safety permits for two dams needed for the project. Macquarie also raised its target price to $4.75 from $4.00.
The company also announced it was replacing former president and chief executive Keith Hulley with Jonathan Henry. Henry most recently served as Chief executive of U.K.-based gold miner Avocet Mining.
It was also a strong period for Mawson Resources as the company’s shares climbed 21% to 41¢ and were still moving up at press time. The strong run came on the back of two news releases.
The first was issued on June 3rd and reported drill results from the Ostra Jarntjarnbacken uranium prospect in the uranium district of northern Sweden which included a highlight intercept of 17 metres grading 0.1% U308.
The second was from its Rompas property in Finland which returned bonanza-grade gold and uranium results from surface sampling. Samples returned as much as 12,800 grams gold and 43.6% uranium.