Western Potash was the top gainer on the TSX last week after releasing a scoping study for its Milestone project. It was followed by Lithium Americas, Sandstorm Gold, Ivanhoe Mines and Alamos Gold.
The S&P/TSX Composite index (INDEXTSI:OSPTX) rose on Friday for the third day in a row. According to Reuters, the situation in Greece helped the index overcome declines in the oil and gas market.
Amidst that turmoil, a number of companies recorded share price gains last week. Western Potash (TSX:WPX) was the top gainer, and it was followed by Lithium Americas (TSX:LAC), Sandstorm Gold (TSX:SSL,NYSEMKT:SAND), Ivanhoe Mines (TSX:IVN) and Alamos Gold (TSX:AGI,NYSE:AGI).
Western Potash’s share price rose 20 percent last week to hit $0.30. That increase came on the completion of a scoping study for a Pilot Plant Scale Selective Solution Mining Operation at the company’s Saskatchewan-based Milestone project. According to Western Potash, the scoping study, which is a preliminary economic assessment, outlines how it can “effectively exploit the Milestone asset through reduced targeted levels of potential production, using innovative selective potash solution mining techniques, while projecting a reduced CAPEX and competitive OPEX.”
All in all, the scoping study points to an after-tax/royalty projected NPV of C$56.7 million, an IRR of 25.2 percent at a 10-percent discount, capex of C$80.6 million, opex of C$80 per tonne and a potash price of US$315 per tonne FOB Vancouver.
Last week, Lithium Americas’ share price jumped 12.5 percent, to $0.45. On Tuesday, the company announced plans to merge with Western Lithium USA (TSX:WLC) in an all-stock transaction worth C$80 million. The deal will see Western Lithium acquire all outstanding shares of Lithium Americas, and the combined company will have a market cap of $150 million.
Speaking positively about the deal, Jay Chmelauskas, CEO of Western Lithium, commented, “[t]he merged company will hold two of the leading lithium development projects in the world. We believe this combination will also result in better liquidity, market capitalization and funding opportunities.”
In third place is Sandstorm Gold, which rose 8.58 percent last week to reach $4.05. Sandstorm is a little different from the other companies on this list in that its mandate is to provide financing to gold-focused companies via gold stream and royalty agreements.
Last week, Sandstorm provided an update on the various companies underlying its streams and royalties, commenting on activities recently undertaken by Luna Gold (TSX:LGC), Metanor Resources (TSXV:MTO) and Canadian Zinc (TSX:CZN,OTCBB:CZICF).
Robert Friedland-led Ivanhoe Mines did not release any news last week, but nevertheless recorded a share price increase of 6.59 percent, ending the week at $0.97.
The company holds three projects in Africa: the Kamoa copper project in the Democratic Republic of the Congo (DRC), the Kipushi zinc-copper project, also in the DRC, and the South Africa-based Platreef PGM-gold-nickel-copper project. Most recently, Ivanhoe put out a statement regarding Kamoa; it is currently trying to sell a further 15-percent stake in the project to the DRC government.
Last on the list is Alamos Gold, which rose 4.69 percent last week to end at $7.36. The company closed its merger with AuRico Gold (TSX:AMI,NYSE:AMI) on July 2.
“The completion of the merger has transformed Alamos into a leading intermediate producer. With diversified gold production from three North American mines, a portfolio of low-cost development projects in safe jurisdictions, and one of the strongest balance sheets of our peer group, we look forward to creating significant long term value for our shareholders,” said John A. McCluskey, president and CEO of Alamos.
Data for TSX Top 5 articles is retrieved each Friday after market close. Only companies with a market capitalization greater than $50 million prior to the week’s gains are included.
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