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5 Top Weekly TSXV Stocks: Vanstar Rises on IAMGOLD Acquisition News
Dec. 10, 2023 07:40PM PST
Last week's top-gaining mining and energy stocks on the TSXV were Guardian Exploration, Triumph Gold, Vanstar Mining, Star Royalties and Denarius Metals.
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The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell slightly last week, losing 8.76 points to close at 537.5.
American markets ended higher on Friday (December 8) as the country's November jobs report showed continued resilience in the labor pool, with 199,000 new jobs added during the period and the unemployment rate falling to 3.7 percent. The data further supports the idea that the US economy is on track for a soft landing.
Meanwhile, the Bank of Canada maintained its benchmark rate at 5 percent on Wednesday (December 6). In a statement, it points to a 1.1 percent contraction in real GDP in Q3 and a modest rise in unemployment, which are reducing inflationary pressures. Moving forward, the bank would like to see "further and sustained easing" in core inflation.
How did small-cap resource and energy stocks perform against that backdrop? Keep reading to find out which companies on the TSXV performed best this past week, and what moved their share prices.
1. Guardian Exploration (TSXV:GX)
Weekly gain: 183.33 percent; market cap: C$16.65 million; current share price: C$0.17
Guardian Exploration is an oil, gas and mineral exploration company. Its key asset is the Mount Cameron silver-lead-zinc project in Yukon, Canada. It also holds mineral claims on Southern Dall Island in Southeast Alaska.
Guardian saw strong share price gains last week after it announced on Tuesday (December 5) that it plans to acquire Site Exploration Mining, a Saudi Arabian mining company. The deal would give Guardian access to five prospects covering 328 square kilometers, with rights to an additional 30 mineral prospects at various stages of license application and approval. The prospects are focused on gold, as well as base and battery metals.
Under the agreement, Guardian would pay $300,000 in cash to Site Exploration, along with 15 million common shares. If further licenses are granted to Site Exploration in the next five years, Guardian would pay an additional $50,000 and 500,000 common shares for each up to a maximum of $1.5 million and 15 million common shares.
2. Triumph Gold (TSXV:TIG)
Weekly gain: 47.27 percent; market cap: C$14.435 million; current share price: C$0.405
Triumph Gold is an explorer and developer focused on land packages in Yukon and BC. Its three properties in Yukon are all within the Dawson Range and consist of: the company's flagship Freegold Mountain project, which has 20 identified mineral resources hosting gold, silver, copper, molybdenum, lead and zinc deposits; the Tad Toro copper, gold and molybdenum project; and the Big Creek copper and gold project. Triumph's property in Northern BC is Andalusite Peak.
The most recent news from the company came on November 20, when it released highlights from exploration at Tad Toro and Big Creek. Although it hasn't released further updates, Triumph hit a year-to-date high of C$0.405 last week.
3. Vanstar Mining Resources (TSXV:VSR)
Weekly gain: 39.53 percent; market cap: C$36.57 million; current share price: C$0.60
Vanstar Mining Resources is a gold explorer focused on the development of assets in Northern Quebec. It holds a 25 percent stake in its flagship Nelligan project, with remainder held by IAMGOLD (TSX:IMG,NYSE:IAG). The property hosts 5.6 million ounces of indicated and inferred resources and consists of 158 mining cells covering 8,216 hectares.
Shares of Vanstar began rising this past Monday (December 4) following the release of results from a summer drilling program at Nelligan. The company said some holes returned better-than-average grades, and noted that the deposit remains open in all directions, with room for additional expansion. One highlight mentioned is hole NE-22-206, which returned intercepts including 3.08 g/t gold over 8 meters from 413.5 meters in depth.
These results were followed by Tuesday's news that Vanstar has entered into an agreement to be acquired by IAMGOLD. According to a press release, the deal implies a value of C$0.69 for each Vanstar share, and represents a 74 percent premium to Vanstar's 20 day volume-weighted average price on the TSXV as of December 1.
4. Star Royalties (TSXV:STRR)
Weekly gain: 36.36 percent; market cap: C$26.61 million; current share price: C$0.30
Star Royalties is a precious metals and carbon credit royalty company. It currently holds interests in several mining operations, including a 2 percent net smelter royalty on the Elk gold mine near Kamloops, BC, and a 4 percent gold stream on the Copperstone gold mine in Arizona, US.
Shares of Star Royalties saw gains this past week after the company closed a strategic investment into Green Star Royalties with Cenovus Energy (TSX:CVE,NYSE:CVE) on Thursday (December 7). Under the agreement, Star Royalties will own 45.9 percent of Green Star, while Cenovus and Agnico Eagle Mines (TSX:AEM,NYSE:AEM) will each own 25.9 percent; the remaining 2.3 percent will be held by management.
Green Star is a venture dedicated to funding nature-based climate solutions within North America, and helped to develop the world’s first carbon credit royalties in forestry and regenerative agriculture.
5. Denarius Metals (TSXV:DSLV)
Weekly gain: 34.78 percent; market cap: C$27.53 million; current share price: C$0.465
Denarius Metals is an exploration and development company that is focused on operating polymetallic projects. Its flagship asset is the Lomero-Poyatos project in Huelva province of Spain. Resource estimates from the site show indicated and inferred reserves of 802,000 ounces of gold, 8,573,000 ounces silver and 61,413 metric tons of copper.
Shares of Denarius trended up last week after the company entered into an agreement to acquire 50 percent of Rio Narcea Recursos, which owns the rights to the past-producing Aguablana nickel-copper mine in Spain. Denarius Executive Chairman Serafino Iacono said the acquisition “accelerates our path to production from our flagship Lomero Project using excess capacity available in Rio Narcea Recurso’s 5,000 metric tons per day processing plant.”
Data for this 5 Top Weekly TSXV Performers article was retrieved on Friday (December 8) at 1:30 p.m. PST using TradingView's stock screener. Only companies with market capitalizations greater than C$10 million prior to the week's gains are included. Companies within the non-energy minerals and energy minerals are considered.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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