Last week’s other top-gaining mining stocks on the TSXV were Champion Bear Resources, Emgold Mining, Red Eagle Exploration and FPX Nickel.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) closed down 5.8 points on Friday (February 9) to end at 813.39 points.
Last week brought high volatility in US stocks after the Dow Jones Industrial Average (INDEXDJX:.DJI) lost over 1,500 points during midday trading on Monday (February 5). The Dow continued on a downward trend over the following days before recovering a little over 1 percent on Friday.
Statistics Canada released its latest jobs report on Friday, revealing that the economy lost 88,000 jobs in January, with most of the losses concentrated on part-time positions. It was the largest one-month slide in nine years, and pushed the national jobless rate up 0.1 percentage points to 5.9 percent.
The Canadian dollar fell following the release of the report, sinking from 79.46 cents US on Thursday (February 8) to 79.26 cents US on Friday.
BMO Financial Group Chief Economist Doug Porter told CBC that the report will likely prompt Canada’s central bank to proceed “ultra-cautiously” through the rest of 2018, with rate hikes not expected until the latter half of the year.
Against that backdrop, a number of TSXV-listed mining stocks experienced significant share price gains last week. The five top gainers are as follows:
- King’s Bay Resources (TSXV:KBG)
- Champion Bear Resources (TSXV:CBA)
- Emgold Mining (TSXV:EMR)
- Red Eagle Exploration (TSXV:XR)
- FPX Nickel (TSXV:FPX)
Read on for a brief overview of those companies and what moved their share prices last week.
1. King’s Bay Resources
King’s Bay Resources’ share price jumped 31.25 percent last week to close at $0.11 after it said it is considering entering the cannabis market. The company said on Thursday that it has no intention of abandoning its Lynx Lake copper–cobalt project, and noted that it is interested in cannabis because some of its directors are involved with publicly traded cannabis companies.
“If the right deal comes along, and if we believe that we as a Company can add value because of our experience in the cannabis industry and our connections in the public markets, it would only make sense to take that deal … [w]e won’t jump at anything, and will take the time to make decisions based on the right reasons. No particular deal is imminent,” said King’s Bay President and CEO Kevin Bottomley.
2. Champion Bear Resources
The report was originally released last November, and it shows that the deposit has a total inferred resource of 5.7 million tonnes grading 0.58 g/t gold for 107,100 ounces of gold and 0.21 g/t silver for 38,400 ounces of silver. WSP Canada prepared the report and has recommended two phases of drilling for further exploration on the property.
3. Emgold Mining
Emgold Mining’s last news came on January 23, when it received conditional TSXV approval to acquire a 51-percent interest in the Golden Arrow property from Nevada Sunrise Gold (TSXV:NEV). The deal is conditional on Emgold’s ability to raise the funds to close the transaction.
The company plans to complete the acquisition of the 51-percent stake in Golden Arrow by issuing 2.5 million shares in the capital of the company and paying C$282,000 in cash. Its share price rose 20 percent over the course of last week to close at $0.21.
4. Red Eagle Exploration
Gold producer Red Eagle Exploration released an update on its Santa Rosa gold project in Colombia last week. According to the company, the mill at the project successfully started up last month, and has been operating continuously ever since; first commercial gold pour is expected for the end of February. The company’s share price rose 14.29 percent over the course of last week to close at $0.09.
5. FPX Nickel
FPX Nickel’s latest news came in mid-January, when it announced new assay results for bedrock samples from the Van target at the Decar Nickel District in Central BC.
The company said the assays have significantly expanded the scale and importance of the Van target, which is one of the four major targets that FPX has identified in the Decar Nickel District. The firm’s share price gained 12.5 percent over the course of last week to close at $0.13.
Data for 5 Top Weekly TSXV Stocks articles is retrieved each Friday at 10:30 a.m. PST using The Globe and Mail’s market data filter. Only companies with a market capitalization greater than $10 million prior to the week’s gains are included. Companies within the mining and precious metals sectors are considered.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Nevada Sunrise Gold is a client of the Investing News Network. This article is not paid-for content.