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

Last week's other top-gaining mining stocks on the TSX were Premier Gold Mines, Sabina Gold & Silver, SouthGobi Resources and Almaden Minerals.

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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.

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