5 Top Weekly TSX Stocks: Dominion Diamond Surges on $1.1-billion Takeover Bid

Montana-based Washington Corporations' bid for the company has not received the warmest of welcomes from Dominion Diamond.

a big day for biotech

The S&P/TSX Composite Index (INDEXTSI:OSPTX) closed Friday (March 24) up 0.06 percent, at 15,442.67 points. According to Bloomberg, the index’s slight gain was driven in part by US approval of the Keystone XL pipeline.

The approval boosted TransCanada’s (TSX:TRP,NYSE:TRP) share price, and the rise helped push the the index up. The withdrawal of US President Donald Trump’s healthcare bill also impacted a slew of indices on Friday, but Bloomberg notes that ultimately most ended the week flat.

Amid that activity, several mining stocks on the TSX recorded big gains last week. The top gainers were:

  • Dominion Diamond (TSX:DDC,NYSE:DDC)
  • Premier Gold Mines (TSX:PG)
  • Sabina Gold & Silver (TSX:SBB)
  • SouthGobi Resources (TSX:SGQ)
  • Almaden Minerals (TSX:AMM,NYSEMKT:AAU)

Here’s a quick look at those companies and what moved their share prices last week.

Dominion Diamond

Last week was tumultuous for Dominion Diamond, which on March 19 confirmed that in February it received a $1.1-billion takeover bid from Washington Corporations (WashCorps).

In a press release, the company describes the bid as an “unsolicited, conditional and non-binding expression of interest,” and explains that after meeting with WashCorps it learned that the firm does not have any experience working in the diamond industry and does not “have any unique plans for the business.” Dominion also says that it has offered WashCorps the opportunity to improve its offer, but has found that WashCorps is interested in operating only under its own terms.

“While the Board has repeatedly offered to constructively engage with WashCorps on customary terms, WashCorps continues to demand, as a condition to any discussions, a lengthy period of exclusivity, as well as the ability to veto the Board’s choice of new CEO. WashCorps has also refused to accept a customary form of standstill that would restrict it from using the confidential information to acquire control of the Company,” says Dominion.

Since then Dominion has reiterated that it remains open to speaking with WashCorps “on customary terms and in a manner that protects the interests of the Company and its stakeholders.” At close of day Friday, Dominion’s share price was sitting at $16.99 after rising 28.61 percent over the course of the week.

Premier Gold Mines

Premier Gold Mines was also busy last week. It released an updated mineral resource estimate for its Nevada-based McCoy-Cove property on March 21, and on March 24 it put out its operational and financial results for Q4 2016 and the full 2016 year. In total, the company produced 111,739 ounces of gold and 98,401 ounces of silver last year.

Together, those pieces of news sent the company’s share price up 22.35 percent over the course of the week. At close of day Friday it had reached $3.12.

Sabina Gold & Silver

Similar to Premier, last week Sabina Gold & Silver released its financial results for Q4 2016 and the full 2016 year. The company hit a snag in June, when the Nunavut Impact Review Board (NIRB) recommended that its Back River project not proceed to the next phase of permitting; however, President and CEO Bruce McLeod nevertheless remains optimistic.

“[W]e understand and support the NIRB’s desire for a high level of confidence in our proposals for the Back River Project,” he said last week. “We are happy to be back in the process and believe that our recently submitted Final Environmental Impact Statement Addendum … presents additional mitigation, information and plans that will address NIRB’s concerns.”

At close of day Friday Sabina’s share price was up 12.98 percent at $1.48.

SouthGobi Resources

SouthGobi Resources did not release any news last week. Even so, the company’s share price rose 12.86 percent to end the period at $1.48. SouthGobi is an integrated coal supplier, and its key asset, the Mongolia-based Ovoot Tolgoi coal mine, is the closest coal mine to China. It also holds mining and exploration licenses for other metallurgical and thermal coal deposits in Mongolia.

Alamden Minerals

Finally, Almaden Minerals ended last week up 11.76 percent at $1.52. Like SouthGobi, it did not release any news last week that would explain that increase. Its most recent news came in February, when it put out assay results from an ongoing exploration and development program at its Mexico-based Tuligtic gold-silver project.

Data for 5 Top Weekly TSX Stocks articles is retrieved each Friday after market close using The Globe and Mail’s market data filter. Only companies with a market capitalization greater than $50 million prior to the week’s gains are included. Companies within the mining and precious metals sectors are considered.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.


This article is updated each week. Please scroll to the top for the most recent information.

5 Top Weekly TSX Stocks: Champion Iron Buys Railcars, Gains 16.48 Percent

By Jocelyn Aspa, March 19, 2017

For the second week in a row, the S&P/TSX Composite Index (INDEXTSI:OSPTX) edged lower. It dropped 0.1 percent last week to end the five-day period at 15,490.49 points.

On Friday (March 17), Business News Network noted that although commodities prices for the most part moved upward during the week, many resource and financial companies saw share price drops. Those declines weighed on the index.

That said, there were some mining stocks that made gains last week. In particular, a number of companies focused on base and precious metals saw steady share price increases over the five-day period. The five top-gaining mining stocks on the TSX last week were:

  • Amerigo Resources (TSX:ARG)
  • Champion Iron (TSX:CIA)
  • Alamos Gold (TSX:AGI)
  • Auryn Resources (TSX:AUG)
  • Alacer Gold (TSX:ASR)

Here’s a closer look at those companies and what moved their share prices last week.

Amerigo Resources

Last week’s biggest gainer on the TSX was Amerigo Resources, which bills itself as a long-term copper producer in Chile. The company produces copper concentrate at its MVC operation in the country, and it put out 57 million pounds of copper in 2016.

Most recently, Amerigo Resources released its 2016 and Q4 2016 financial results. It did not release any news last week, but nevertheless saw an impressive 21.31-percent share price spike. It closed the week at $0.74.

Champion Iron

Next on the list is Champion Iron, an iron ore exploration company with properties in the Labrador Trough. The company owns a 100-percent interest in Fermont Iron Holdings, which holds eight iron ore-rich projects.

Last week, Champion Iron acquired 735 iron ore railcars for its Bloom Lake mine. The news sent the company’s share price up 16.48 percent to close the week at $1.06.

Alamos Gold

In the middle of the pack is Alamos Gold, a gold producer with three operating mines, including the Young-Davidson mine in Ontario and the Mulatos and El Chanate mines in Mexico. The company also has six development projects scattered across North America and Europe.

Last week, Alamos Gold’s share price increased 15.48 percent to end the five-day period at $10.89. The company did not release any news that would explain the share price bump.

Auryn Resources

Auryn Resources’ share price gained 15.07 percent last week to close at $3.13, though it also did not release any news that would explain that gain.

The company is focused on high-grade gold deposits in a variety of jurisdictions in Nunavut and BC, but has a number of projects in Peru as well. Its most recent news came on February 24, when it provided an exploration update for its Sombrero skarn-porphyry-gold-copper oxide project in Peru.

Alacer Gold

Rounding out the list is Alacer Gold, which has an 80-percent interest in the Copler gold mine in Turkey. The company also has a number of other exploration projects in Turkey through joint ventures with its partner, Lidya Mining. Last week, Alacer Gold’s share price jumped 13.93 percent to end the period at $2.78

Data for 5 Top Weekly TSX Stocks articles is retrieved each Friday after market close using The Globe and Mail’s market data filter. Only companies with a market capitalization greater than $50 million prior to the week’s gains are included. Companies within the mining and precious metals sectors are considered.

Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

Related reading: 

5 Top Weekly TSX Stocks: Index Takes a Hit

5 Top Weekly TSX Stocks: Atalaya Mining Rises After Copper Acquisition

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