Welcome to the Investing News Network’s weekly look at the best-performing Canadian mining stocks on the TSX and TSXV, starting with a round-up of Canadian and US data impacting the resource sector.
Month-on-month, CPI was down 0.2 percent in August after increasing 0.4 percent the prior month.
The slower pace was attributed to a decline in gasoline prices, which fell 5.1 percent on a yearly basis and 2.6 percent on a monthly basis. While mortgage interest costs are a large contributor to the CPI’s gains, August’s data showed they are slowing as well, with an 18.1 percent year-over-year gain compared to its 30.9 percent peak in August 2023.
In his remarks following the decision, Fed Chair Jerome Powell said the US economy has come into balance, and that the cut puts the central bank in a good position to respond to changes to inflation or the labor market.
Powell added that he is encouraged by inflation easing toward the 2 percent target, but stressed that more data will be needed to demonstrate inflation is moving sustainably within the target range.
Following the announcement, US indexes spiked, but were highly volatile, and ultimately ended Wednesday largely flat. However, markets opened on Thursday significantly higher and experienced more stability throughout the day.
Gold and silver saw large gains shortly after the Fed meeting, but also saw high volatility — their gains were erased by the end of Wednesday. Like equity markets, the metals saw more stability and gains on Thursday, with gold gaining 1.16 percent to reach US$2,588.44 per ounce, and silver surging 2.48 percent to hit US$30.80 per ounce as of 4:00 p.m. EDT.
The metals soared even higher on Friday (September 20) as gold set a new intraday high of US$2,625.46 and a closing high of US$2,622.12. Silver moved as high as US$31.39 before closing at US$31.20.
How has this week’s news impacted Canadian resource stocks? Here are the top five gainers on the TSX and TSX Venture Exchange as of the end of trading on Thursday.
Weekly gain: 72.73 percent; market cap: C$15.88 million; share price: C$0.10
Big Ridge Gold is an exploration company that has spent much of 2024 working to advance its flagship Hope Brook gold project in Newfoundland and Labrador, Canada.
Located on the southwest coast of the island of Newfoundland, the site consists of 1,003 claims in 5 licenses over 25,075 hectares. It has hosted historic mining operations between 1987 and 1997 and produced 752,163 ounces of gold.
Weekly gain: 60 percent; market cap: C$10.98 million; share price: C$0.08
Almaden Minerals is a precious metals exploration company working to advance the Ixtaca gold and silver deposit in Puebla, Mexico. According to the company website, the deposit was discovered by Almaden’s team in 2010 and has seen more than 200,000 meters of drilling across 500 holes.
Weekly gain: 50 percent; market cap: C$39.39 million; share price: C$0.045
Prairie Provident Resources is an oil and gas exploration, development and production company with assets throughout Alberta, Canada.
The company said it will use proceeds to fund the drilling of at least two wells in the Basal Quartz formation before the end of 2024, along with workovers of existing wells to improve productivity.
Weekly gain: 35.71 percent; market cap: C$114.66 million; share price: C$1.90
Serabi Gold is a gold producer and explorer that owns the Palito mining complex and the Coringa gold mine in Northern Brazil.
The gold company maintained its production guidance for 2024 at 38,000 to 40,000 ounces of gold.
Additionally, the company reported results from a 3,500 meter surface drill program at Palito targeting a southern step-out extension at the G3 vein. The returned assays included a highlight intercept of 20.47 g/t gold over 3.15 meters, including 43.72 g/t gold over 1.45 meters.
Weekly gain: 33.33 percent; market cap: C$41.28 million; share price: C$0.10
Roscan Gold is an exploration and development company working to advance its Kandiole project in the Republic of Mali. The company’s permits cover an area of 288.8 square kilometers and host several mineralized targets.
In the release, the company also announced it intends to complete a non-brokered private placement with company director Michael Gentile for C$300,000.
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, while the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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