The Conversation (0)
5 Top Weekly TSXV Stocks: TAG Oil Surges with 46 Percent Gain
Feb. 18, 2024 07:40PM PST
Last week's top-gaining mining and energy stocks on the TSXV were TAG Oil, Pulse Oil, Nouveau Monde Graphite, Kirkland Lake Discoveries and Volcanic Gold Mines.
welcomeinside / Shutterstock
The S&P/TSX Venture Composite Index (INDEXTSI:JX) jumped 7.68 points last week to close at 556.76
The Bureau of Labor Statistics released the latest US inflation data this past Tuesday (February 13), and it shows that prices in the country continued to cool in January, recording a year-on-year increase of 3.1 percent. However, the core consumer price index, which excludes food and energy, was 3.9 percent above where it was a year ago.
The higher-than-expected increases sent markets into decline, with some analysts saying they see the numbers as an indication that the US Federal Reserve is likely to delay cuts to its benchmark interest rate.
North of the border, Jonathan Wilkinson, Canada's minister of natural resources, announced plans to accelerate regulatory processes for the mining and processing of critical minerals in the nation. According to Wilkinson, the changes will reduce the time it takes for approvals from 12 to 15 years to as few as five years.
Other changes to stimulate sector growth will include establishing an investment tax credit to aid with the development of new projects. These credits will be in addition to existing funding for infrastructure for electrical lines and building roads. The new changes are being introduced to help secure Canada’s energy independence.
How did TSXV-listed mining and energy stocks fare this past week? Here are the top five gainers.
1. TAG Oil (TSXV:TAO)
Weekly gain: 45.95 percent; market cap: C$86.47 million; current share price: C$0.54
TAG Oil is an oil exploration and production company with assets in the Middle East and North Africa. It is currently focused on the development of its Badr oilfield project in Egypt's Western Desert, with efforts centered around the Abu Roash Formation. Exploration at the project indicates the potential for more than 500 million barrels of oil in place. TAG has a concession term deal in place until 2032 with a 10 year extension with Phase 3 development.
The company has released no news since January 3, when it provided an update on drilling progress at the BED4-T100 well in the Badr oilfield. Even so, its share price was up 45.95 percent last week.
2. Pulse Oil (TSXV:PUL)
Weekly gain: 42.86 percent; market cap: C$18.18 million; current share price: C$0.05
Pulse Oil is an oil explorer and producer focused on the development of assets west of Edmonton in Alberta, Canada. The company's Bigoray site consists of more than 50 isolated reservoirs in the Pembina/Bigoray trend. Discovered petroleum initially in place has been estimated at 33.52 million barrels by geotechnical modeling.
Shares of Pulse saw gains this past week following an announcement on Friday (February 16) that the 5-09 well at the Bigoray Nisku E pool has been producing since the beginning of February. Additionally, the company said that drilling will commence at the Nisku D pool on February 19. Pulse plans to drill the well to a total depth of 2,686 meters over 12 days.
3. Nouveau Monde Graphite (TSXV:NOU)
Weekly gain: 42.07 percent; market cap: C$206.55 million; current share price: C$3.85
Nouveau Monde Graphite is a graphite and battery materials company with operations located within 150 kilometers of Montreal, Quebec. When complete, its Matawinie mine will produce 103,000 metric tons (MT) of graphite concentrate annally with a 25 year lifespan. It will feature sustainable development measures, including integrated water management systems and biodiversity protection. Additionally, the mine will have vertical integration with Nouveau Monde’s Bécancour battery materials plant, which will deliver anode materials directly to market.
Shares of Nouveau Monde saw gains this past week following an announcement on Thursday (February 15) that Panasonic (TSE:6752) and General Motors (NYSE:GM) have committed to multi-year offtake agreements that will cover the supply of 36,000 MT of active anode materials, representing 85 percent of Phase 2 production from Nouveau Monde’s Matawinie mine and Bécancour battery materials plant. The companies will also provide US$50 million for a tranche 1 investment to advance the development of the projects, with more to come pending certain conditions.
Nouveau Monde's strategic partner Mitsui (TSE:8031) and longtime investor Pallinghurst Group will also provide a total of US$37.5 million to the company, with proceeds being used to repurchase their previously announced convertible notes.
4. Kirkland Lake Discoveries (TSXV:KLDC)
Weekly gain: 33.33 percent; market cap: C$12.41 million; current share price: C$0.14
Kirkland Lake Discoveries is a gold and copper exploration company focused on its namesake project in Ontario, Canada.
The project consists of a district-scale land package covering approximately 38,000 hectares, and is located in the Abitibi Greenstone Belt. The company’s Lucky Strike, Goodfish-Kirana, KLW and KLC properties have demonstrated anomalous occurrences of copper, silver and other minerals, and have been host to past-producing gold and copper mines.
Shares of Kirkland Lake gained more than 33 percent last week, although the company did not release any news.
5. Volcanic Gold Mines (TSXV:VG)
Weekly gain: 33.33 percent; market cap: C$12.75 million; current share price: C$0.30
Volcanic Gold Mines is a gold and silver exploration and development company with operations in Eastern Guatemala.
The company’s Holly project, a joint venture with Radius Gold (TSXV:RDU,OTC Pink:RDUFF), hosts high-grade gold and silver mineralization. A mineral resource estimate produced in June 2022 shows inferred values of 272,110 ounces of gold and 10.91 million ounces of silver with a gold equivalent cut off of 3 grams per MT.
Volcanic’s Motagua Norte project consists of an 86 square kilometer land parcel, with 13.5 square kilometers licensed for exploration. The site hosts a large, high-grade, surface-level gold and silver footprint.
Shares of Volcanic saw gains this past week after Thursday's news that exploration at the Mila target at Motagua Norte has commenced. According to the company, past assay results from the eastern wall of a north-south quartz ridge returned results up to 118 grams per MT gold, with the location being targeted for the first few drill holes.
Data for this 5 Top Weekly TSXV Performers article was retrieved at 1:00 p.m. PST on February 16, 2024, 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 were considered.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
https://twitter.com/INN_Resource
https://www.linkedin.com/in/deanbelder
dbelder@investingnews.com
