Last week’s other top-gaining mining stocks on the TSX were SouthGobi Resources, Platinum Group Metals, Silver Bear Resources and Hudbay Minerals.
The S&P/TSX Composite Index (INDEXTSI:OSPTX) ended Friday (January 12) up 21.24 points, or 0.13 percent, at 16,308.18 points.
Reuters notes that share price increases for gold miners, lumber companies and other resource-focused stocks offset “sharp losses” for cannabis producers. Overall, the S&P TSX lost 0.25 percent over the course of the week.
Against that backdrop, a number of TSX-listed mining stocks enjoyed share price gains last week. The five biggest gainers are as follows:
- Primero Mining (TSX:P)
- SouthGobi Resources (TSX:SGQ,HKEX:1878)
- Platinum Group Metals (TSX:PTN,NYSEAMERICAN:PLG)
- Silver Bear Resources (TSX:SBR)
- Asanko Gold (TSX:AKG,NYSEAMERICAN:AKG)
Here’s a look at those companies and the factors that moved their share prices last week.
1. Primero Mining
Primero Mining’s share price leaped 200 percent last week to close at $0.27 after First Majestic Silver (TSX:FR,NYSE:AG) announced plans to acquire the company in a $320-million deal.
Keith Neumeyer, CEO of First Majestic, has described the acquisition as “transformative.” He noted in a press release that the deal “enhances First Majestic’s operating platform, adding a very high quality, long-lived asset in San Dimas, all in First Majestic’s backyard in Durango, Mexico.”
The San Dimas silver-gold mine is Primero’s primary asset. It was acquired by the company in 2010, and the company says it is one of Mexico’s most significant precious metals deposits.
2. SouthGobi Resources
SouthGobi Resources is an integrated coal supplier, and is aiming to become a conglomerate with diversified businesses in Mongolia to bridge the business opportunities between China and Mongolia. It says that its flagship Ovoot Tolgoi coal mine is the closest coal mine to China.
Last Thursday (January 11), the company released an update on an arbitration proceeding in Hong Kong related to a dispute concerning a coal supply agreement. The agreement is between a subsidiary of SouthGobi and First Concept Industrial Group.
According to last week’s release, the SouthGobi subsidiary “has been ordered to repay the sum of US$11.5 million (which [it] had received as a prepayment for the purchase of coal) to First Concept, together with accrued interest at a simple interest rate of 6% per annum from the date which the prepayment was made until the date of the Arbitration Award, and then at a simple interest rate of 8% per annum until full payment.” SouthGobi’s share price rose 38.89 percent last week to close at $0.25.
3. Platinum Group Metals
Platinum Group Metals is focused on platinum and palladium production, and has projects in South Africa. Its main asset is its Waterberg platinum-group metals project, for which it is currently completing a definitive feasibility study; most recently, the firm appointed lead engineers for the study.
The company released its Q1 results last week, commenting that during the three months ended November 30, 2017, it incurred a net loss of $12.44 million. Platinum Group Metals’ share price rose 28.57 percent over the five-day period, closing the week at $0.63.
4. Silver Bear Resources
Silver Bear Resources is pursuing the acquisition, exploration, evaluation and development of Russia-based silver properties. The company’s main asset is its Mangazeisky exploration licence area, which hosts the Vertikalny silver mine development.
Last week, Silver Bear’s share price rose 28 percent to close at $0.32. During the period, the firm received a license for the usage and storage of hazardous chemical materials for Mangazeisky. According to the company, it can now deliver all necessary reagents to site, and will be able to begin final hot commissioning followed by first silver production during the first quarter of 2018.
5. Asanko Gold
Africa-focused Asanko Gold owns the operating Asanko gold mine, as well as highly prospective land packages on Ghana’s Asankrangwa and Sefwi belts. It’s vision is to become a low-cost, mid-tier gold producer, and its mine began commercial production in April 2016. The company did not release any news last week, but its share price rose 22.89 percent last week to close the period at $1.02.
Data for 5 Top Weekly TSX Stocks articles is retrieved each at 10:30 a.m. PST 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.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.