TSX dragged lower by energy, jobs data, Dec. 1-5

Weaker-than-expected employment numbers showing Canada lost 10,700 jobs in November — which pushed up the unemployment rate to 6.6% from October’s 6.5% — along with disappointing earnings from the big banks and energy stocks that continued their downward spiral, weighed on the country’s main stock index. The S&P/TSX Composite Index fell 1.8% to 14,473.70. The S&P/TSX Capped Diversified Metals & Mining Index dropped 3.3% to 683.73 and the S&P/TSX Global Mining Index slipped 1.3% to 63.63. Only the S&P/TSX Global Gold Index posted a gain, climbing 2% to 146.25.

Shares of Eco Oro Minerals surged 56% to 25¢ on no news. The junior last released news in August when it finished building its wastewater treatment plant at its wholly owned Angostura project in northeastern Colombia. According to an updated preliminary economic assessment in February 2012, Angostura could produce 303,000 equivalent oz. gold per year for a decade at a mining rate of 6,000 tonnes per day. The company is completing a prefeasibility study to determine the optimal mine design and production rate.

Anaconda Mining jumped 29% to 5¢ per share on news that it had made its final payment on a loan from the Atlantic Canada Opportunities Agency. Anaconda has paid off more than $8 million in debt while advancing its Pine Cove project in Newfoundland. The junior owns the producing Pine Cove gold mine on Newfoundland’s Baie Verte Peninsula, and its short-term goal is to have a decade of mine life nearby the Pine Cove mill. In November Anaconda reported drill results from its Stog’er Tight project, 3 km east of the mill. Shallow intersections included 18.6 grams gold per tonne over 3.5 metres, and 6.77 grams gold over 7 metres.

Cameco posted the week’s steepest decline, falling $1.87 to $19.39 per share. On Dec. 2 the company announced that it had filed a preliminary base-shelf prospectus that would allow offerings of common shares, preferred shares, warrants, subscription receipts and debt securities — or any combination — with an aggregate offering price of up to $1 billion during the next 25 months in Canada and the U.S. It also clarified that it had no immediate plans to offer securities.   

Barrick Gold’s shares fell 33¢ to $13.21. The company announced on Dec. 3 that it had completed the fifty-fifty joint-venture agreement with Saudi Arabian Mining Co. (Ma’aden) for the Jabal Sayid copper mine in Saudi Arabia. The partners expect to begin shipping low-cost concentrate in early 2016. Once in full operation, Jabal Sayid could produce 100 million lb. copper in concentrate per year during its first five years, with the potential to increase to 130 million lb. per year. Reserves stand at 25.3 million tonnes grading 2.6% copper, or 1.4 billion lb. copper, and the partners plan to further explore their mining licence area.


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