The S&P/TSX Venture Composite approached a 52-week low during the trading sessions after it lost 4.5%, or 35.86 points, before closing at 769.59 points. Gold futures dropped while the Industrial Product Price Index lost 0.4% in September due to lower prices for energy and petroleum products. As expected, the U.S. Federal Reserve ended its quantitative easing program, which was fuelled by monthly bond purchases.
December contracts for gold bullion hit a four-year low, dropping 4.6%, or US$56.60, to US$1,171.60 per oz. December contracts for West Texas Intermediate crude oil lost US49¢ en route to a US$80.54-per-barrel close, while December contracts for copper traded relatively flat before finishing the week at US$3.05 per lb.
Explorer Samco Gold led the value-added category during the week after updating its pending legal action against producer Yamana Gold in Argentina. The company gained 100%, or 17.5¢, before closing at 35¢ per share.
Earlier this year, Samco signed a participation-and-option agreement with director Ricardo Auriemma to support exploration.
An Argentine Court of Appeals ruled in favour of Auriemma on a breach-of-agreement case against Northern Orion Resources, which was acquired by Yamana in 2007. Northern Orion had breached a regional alliance agreement entitling Auriemma to 15% of dividends from its interest in the Bajo de la Alumbrera mine.
On Oct. 29 Samco reported that Argentina’s Supreme Court of Justice had unanimously denied the extraordinary motion seeking leave to appeal the Argentine Court of Appeals’ judgment against Northern Orion.
Junior Roxgold had a tough week after news of socio-political turmoil around its development-stage Yaramoko gold project, 180 km southwest of Burkina Faso’s capital city of Ouagadougou. Shares dropped 28.2%, or 20¢, on 3.6 million shares traded before closing the trading week at 51¢ per share.
Large-scale demonstrations broke out in Ouagadougou to protest a move by president Blaise Compaoré to seek a constitutional amendment for another five-year term. Compaoré took power in a 1987 coup, and has won four elections since then.
The protests led to Compaoré’s resignation, and two rival military leaders have declared themselves in charge. General Honoré Traoré and lieutenant Colonel Isaac Zida have mounted competing claims to rule the West African nation.
True Gold Mining has been similarly affected, as its Karma gold project lies 185 km northwest of Ouagadougou. Shares lost 10¢ on 13.8 million shares traded, before finishing the week at 20¢.
TSX-V most active issues
|African Gold G||AGG||31222||0.06||0.04||0.04||–||0.01|
|True Gold Mng||TGM||13808||0.3||0.15||0.2||–||0.1|
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|Iron South Mng||IS||14||0.05||0.04||0.05||+||125|
|West Af Iron O||WAI||50||0.01||0.01||0.01||+||100|
|Central Iron O||CIO||129||0.01||0.01||0.01||–||50|
|China Mnls Mng||CMV||66||0.01||0.01||0.01||–||50|
|East Asia Mnls||EAS||910||0.03||0.02||0.02||–||50|
TSX-V greatest value change