5 Top TSX Stocks: Timmins Gold Leaps Over 30 Percent

- January 31st, 2016

It was followed by New Gold, Taseko Mines, Argonaut Gold and Sabina Gold & Silver.

Last Friday, the S&P TSX Composite index (INDEXTSI:OSPTX) rose 1.77 percent, or 223.4 points, to reach 12,815.37 points. According to Bloomberg, the index has risen 8.2 percent since hitting its lowest point in two and a half years on January 20. 
A slew of TSX-listed resource stocks rose along with the index. The top gainer was Timmins Gold (TSX:TMM,NYSEMKT:TGD), and it was followed by New Gold (TSX:NGD,NYSEMKT:NGD), Taseko Mines (TSX:TKO,NYSEMKT:TGB), Argonaut Gold (TSX:AR) and Sabina Gold & Silver (TSX:SBB). Here’s a look at what moved the share prices of those companies last week.

Timmins Gold

Timmins Gold is an intermediate gold company focused on assets in Mexico. Its San Francisco mine is currently producing, and it holds several development and exploration projects as well.


Last week, Timmins’ share price rose 31.03 percent to reach $0.19. The rise came after the company announced Tuesday that it’s finalized an agreement with Sprott Resource Lending Partnership and Goldcorp (TSX:G,NYSE:GG). Under the agreement, Timmins’ US$10.2-million secured credit facility will be refinanced.
“This credit facility provides the Company with the time and flexibility required to continue pursuing all available options to build a solid financial foundation,” said Mark Backens, Timmins’ interim CEO. “We are committed to unlocking and realizing the true value of our asset base to benefit all shareholders.”

New Gold

Last week, New Gold’s share price rose 20.21 percent to reach $3.45. Like Timmins, the company is an intermediate gold company, though it has four producing assets and two development projects. New Gold didn’t release any news last week; most recently, on January 20, it reported its Q4 and full-year 2015 operational results. New Gold also provided its 2016 guidance at that time.

Taseko Mines

Taseko Mines saw its share price rise 17.78 percent last week to hit $0.53. The company is focused on the operation and development of mines in North America, and among others owns 75-percent of Gibraltar, Canada’s second-largest open-pit copper-moly mine.


Last week, Taseko released a press release that addresses activist investor Raging River Capital. Raging River began buying up shares of Taseko at the end of December, and after gaining the minimum number of shares, requisitioned a special meeting of Taseko shareholders. Raging River’s issues with Taseko seem to be wide ranging, and include concerns about Taseko’s relationship with Hunter Dickinson Services, as well as concerns about Taseko’s 2014 acquisition of Curis Resources.
“While we welcome the views of all shareholders, it is unfortunate that RRC made no good faith effort to constructively engage with us before rushing into what will likely be a costly proxy contest,” Russell Hallbauer, president and CEO of Taseko states in the release.

Argonaut Gold

Argonaut Gold is focused on exploration, mine development and production activities in Mexico and Canada. The company’s share price rose 16.3 percent last week, to $1.07, though it did not release any news that would explain that rise. Most recently, on January 18, Argonaut released the results of an updated prefeasibility study for its Ontario-based Magino property.

Sabina Gold & Silver

Finally, Sabina Gold & Silver saw its share price rise 16.07 percent last week to hit $0.65. Like Argonaut and New Gold, it did not put out any news last week that would explain the increase in its share price. The company, which is focused on gold in Nunavut, put out its most recent news on January 20, when it announced its 2016 budget and work plans.


 
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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