5 Top TSX Stocks: Karnalyte Up 244.32 Percent on Funding Deal

- March 20th, 2016

Arizona Mining, Dundee Precious Metals, Aura Minerals and B2Gold also gained last week.

Last Friday, the S&P/TSX Composite index (INDEXTSI:OSPTX) ended down 124.23 points, or 0.91 percent, at 13,497.07 points. According to Reuters, the decline was due in part to a pullback in energy and banking stocks. 
Despite that decline, a number of TSX-listed mining stocks saw substantial gains last week. The top gainer was Karnalyte Resources (TSX:KRN), and it was followed by Arizona Mining (TSX:AZ), Dundee Precious Metals (TSX:DPM), Aura Minerals (TSX:ORA) and B2Gold (TSX:BTO,NYSEMKT:BTG). Here’s a look at what moved the share prices of those companies last week.

Karnalyte Resources

As mentioned, Karnalyte Resources was the biggest gainer on the TSX last week, far outpacing the other companies on this list with a gain of 244.32 percent. It closed the week at $3.03.
The company’s impressive share price rise came after it announced Monday that it’s entered into an agreement on principle under which Gujarat State Fertilizers and Chemicals will finance construction of the first phase of its Saskatchewan-based Wynard carnallite project. Karnalyte also plans to spin out its secondary mineral assets and unexplored lands into one or more separate entities.

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Commenting positively on the deal, Robin L. Phinney, founder and president of Karnalyte, said that it “provides for a comprehensive financing package to fully fund Karnalyte’s 625,000 tpy potash mine while enabling shareholders to maximize their investment in Karnalyte’s secondary minerals and unexplored lands.”

Arizona Mining

Arizona Mining’s share price gained a more modest 38 percent last week to end at $0.69. The company is focused on the exploration and development of its Arizona-based Hermosa project, which contains the Taylor leadzincsilver carbonate replacement deposit. Arizona Mining last released news on March 3, when it closed a non-brokered private placement for gross proceeds of $2.55 million.

Dundee Precious Metals

Dundee Precious Metals is engaged in the acquisition, exploration, development, mining and processing of precious metals; it has four main subsidiaries, as well as a 50.14-percent stake in Avala Resources (TSXV:AVZ). Last week, its share price rose 24.59 percent to reach $2.28. Like Arizona Mining, the company hasn’t released any news since the beginning of March — on the first of the month, it entered into a definitive agreement to sell its Kapan mine in Armenia to Polymetal International (LSE:POLY).

Aura Minerals

Mid-tier gold producer Aura Minerals owns the San Andreas gold mine in Honduras, the Sao Francisco gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico (operations currently suspended) as well as the copper-gold-iron ore Serrote project in Brazil. Last week, the company’s share price rose 24.32 percent to end at $0.23. As with Arizona Mining and Dundee Precious Metals, Aura hasn’t released any news since the start of the month, when it put out a brief corporate update.

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B2Gold

Finally, B2Gold enjoyed a share price rise of 22.29 percent last week to end at $2.14. The company has four operating mines as well as a portfolio of development and exploration assets, and last week released a slew of news. On Tuesday, it announced financing arrangements to fully fund the construction of its Fekola mine, and on Wednesday it released its operational and financial results for Q4 2015, as well as the full 2015 year.
2015 highlights for B2Gold include record annual consolidated gold production of 493,265 ounces, up 26 percent from 2014, and adjusted net income of $13.3 million, or $0.01 per share. That’s up from $6.7 million, or $0.01 per share, the previous year.
 
Data for 5 Top 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, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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