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Top 5 Canadian Mining Stocks This Week: Euro Manganese Climbs on EU Application
Aug. 30, 2024 02:00PM PST
Explore the week's best-performing Canadian mining and energy stocks on the TSX and TSXV: Superior Mining International, Euro Manganese, Avanti Helium, Sage Potash and Group Eleven Resources.
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX and TSX Venture Exchange, starting with a round-up of Canadian and US data impacting the resource sector.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) lost 10.12 points this week to close at 567.91. Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) was up by 60.1 points to finish at 23,346.18.
Statistics Canada shared real GDP figures on Friday (August 30) for the second quarter of 2024. The data shows the GDP saw a 0.5 percent quarterly gain in Q2, building on a 0.4 percent increase in the first quarter of the year.
The rise was attributed to higher government expenditures, business investments in engineering structures, machinery and equipment along with an increase in household spending on services. Gains were offset by softening exports, residential construction and household spending on goods.
South of the border, the US Bureau of Economic Analysis released personal consumption expenditures (PCE) price index data for July on Friday. The data indicates that it grew 2.5 percent in July on a yearly basis and 0.2 percent compared to June. The figures align with analyst expectations and represent increasing stability in consumer pricing.
PCE is a favored inflation indicator used by the US Federal Reserve when making interest rate policy decisions. The broad consensus amongst economists is that the Fed will lower its benchmark rate when it next meets on September 17 and 18, with most predicting a 25 basis point cut over a 50 basis point reduction.
US markets were mixed this past week with the S&P 500 (INDEXSP:.INX) seeing a 0.15 percent gain to 5,648.39 points and the Nasdaq 100 (INDEXNASDAQ:NDX) dropping 0.53 percent to 19,574.64 points. Meanwhile, the Dow (INDEXDJX:.DJI) eked out a slight 0.88 percent gain to close the week at 41,563.09 points.
Commodities ended the week broadly down, with the S&P GSCI (INDEXSP:SPGSCI) losing 0.68 percent to US$536.76. After swinging in a range of US$2,500 and US$2,526 per ounce throughout the week, gold ultimately dropped 0.35 percent to end the week at US$2,503.21 per ounce. Silver moved above US$30 per ounce multiple times early in the week, but fell throughout the second half of the period, ending the week down 3.24 percent at US$28.85.
Against that backdrop, which TSX- and TSXV-listed mining and energy stocks saw the biggest share price gains? Read on to learn about the five best-performing Canadian mining stocks this week.
1. Superior Mining International (TSXV:SUI)
Weekly gain: 55.17 percent; market cap: C$16.75 million; share price: C$0.225
Superior Mining International is a lithium exploration company that owns the Vieux Comptoir property, which is located in the Eeyou Istchee-James Bay region of Québec, Canada. The project is composed of 544 mineral exploration claims that cover 27,400 hectares, and is situated along the La Grande Greenstone Belt. The company describes the project as an early stage exploration opportunity, and says it is located along strike from lithium projects owned by Patriot Battery Metals (TSX:PMET,OTCQX:PMETF) and Winsome Resources (ASX:WR1,OTCQB:WRSLF).
The most recent update from the project came in August 2023, when Superior Mining announced Vieux Comptoir had been expanded by nearly 8,000 hectares. The company also shared that hyperspectral and remote sensing data had confirmed nine anomalous target trends with 126 pegmatite observations.
The company has not released further news related to the project, but announced the appointment of Jacob Hagedorn to its board of directors on Wednesday (August 28). Hagedorn has spent the past eight years as a consultant for multiple TSXV-listed resource companies with a focus on property acquisitions and development.
2. Euro Manganese (TSXV:EMN)
Weekly gain: 50 percent; market cap: C$20.13 million; share price: C$0.06
Euro Manganese is a manganese development company working to advance its Chvaletice waste recycling project. The operation is focused on extracting manganese from tailings that are part of a decommissioned mine site near Prague, Czechia. As part of the project's scope, the company says it will carry out remediation and reclamation work to bring the site into compliance with environmental regulations.
A 2022 feasibility study for the Chvaletice project indicates that it will produce 48,000 metric tons of manganese per year and is expected to have a project life of 25 years. In the study, the company reports a post-tax net present value of US$1.3 billion with an internal rate of return of 22 percent and a payback period of 4 years.
Euro Manganese saw gains this week after the company announced on Wednesday that it had submitted an application for strategic project status under the European Union’s Critical Raw Material Act. If the application is successful, it will provide for a more streamlined permitting process and access to new avenues for funding.
The company also announced on Monday (August 26) that it has entered into an offtake term sheet agreement with Blue Grass Chemical Specialties for the sale of high-purity manganese from Chvaletice. The announcement does not include the volume or pricing of the deal, but once finalized the agreement will become binding.
3. Avanti Helium (TSXV:AVN)
Weekly gain: 40 percent; market cap: C$21.76 million; share price: C$0.245
Avanti Helium is an exploration and development company focused on advancing helium assets in Canada and the US toward production. Its Greater Knappen projects are composed of several project areas in Southern Alberta, Canada, and Northern Montana, US. The combined land packages cover approximately 74,000 acres with multiple targets.
According to the project page, Avanti has drilled three exploration wells in Montana, with two testing for a combined 18.5 million cubic feet per day gas rate with 1.1 percent helium concentration.
The company’s Leader project consists of a combined land package of 91,000 acres in Southern Saskatchewan. The surrounding region has seen 84 wells drilled by other companies since 2016, and as of September 2023, it hosted approximately 25 wells producing 450,000 cubic feet of helium per day.
Shares of Avanti climbed this week, although the company hasn’t released news in August.
4. Sage Potash (TSXV:SAGE)
Weekly gain: 38.71 percent; market cap: C$10.24 million; share price: C$0.215
Sage Potash is a potash explorer working to advance its portfolio of mineral holdings in Utah’s Paradox Basin. Historic oil and gas exploration in the basin dating back a century discovered the potential for the potash beds, but they were too deep for mining methods at the time. Sage has since confirmed their presence through its own exploration.
In February 2023, the company outlined an inferred resource of up to 159.3 million metric tons of in-place sylvinite for the upper potash bed, and up to 120.2 million metric tons of sylvinite from the lower potash bed.
Sage Potash hasn't released news in August, but its share price performed strongly this week.
5. Group Eleven Resources (TSXV:ZNG)
Weekly gain: 31.25 percent; market cap: C$41.15 million; share price: C$0.21
Group Eleven Resources is an exploration company working to advance its flagship PG West zinc, lead, copper and silver project in the Republic of Ireland. The wholly owned asset consists of 22 prospecting licenses covering 650 square kilometers and hosts the main Ballywire prospect discovered in 2022.
The most recent exploration results from Ballywire, assays from two step-out holes, were released on August 1. One hole encountere 25.6 meters grading 2.8 percent zinc, 2.6 percent lead, 72 grams per metric ton (g/t) silver and 0.12 percent copper, including 3.1 meters grading 8.6 percent zinc, 2.7 percent lead, 353 g/t silver and 0.78 percent copper.
Shares of Group Eleven saw gains this week after it reported on Wednesday that it has received C$600,000 from the exercise of warrants by Michael Gentile, founding partner and senior portfolio manager at Bastion Asset Management. Gentile increased his holdings in Group Eleven to 16.96 percent of company shares.
Group Eleven said it would use the funds to significantly expand its 2024 drill program at Ballywire.
Data for this 5 Top Canadian Mining Stocks article was retrieved at 1:00 p.m PST on August 30, 2024, using TradingView's stock screener. Only companies trading on the TSX and TSXV with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were 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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