The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 1.22 percent on the week to close at 610.22 on Friday (December 6). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 0.16 percent increase to reach 25,691.8, while the CSE Composite Index (CSE:CSECOMP) dropped 2.68 percent to 137.68.
The US Bureau of Labor Statistics released its employment situation report on Friday. The data shows that total nonfarm payrolls increased by 227,000 in November. The figures reflect a rebound from October’s disappointing addition of just 12,000 jobs, as hurricanes Helene and Milton and a Boeing (NYSE:BA) strike impacted the labor market.
Overall, the labor market remained strong in November, with the unemployment rate seeing little change at 4.2 percent, up from 4.1 percent recorded in October. This was reflected by 7.1 million unemployed workers, up from 7 million the previous month. Meanwhile, the participation rate was also steady, recording a 0.1 percent decline to 62.5 percent.
The report is the final piece of data before the US Federal Reserve’s last policy meeting of 2024, which will occur on December 17 and 18. The central bank is expected to cut its benchmark interest rate by 25 points.
North of the border, Statistics Canada released its labor force survey on Friday. Employment increased by 51,000 in November, with the employment rate at 60.6 percent. However, the unemployment rate jumped 0.3 percent to 6.8 percent. Apart from the pandemic, this figure marks the highest unemployment rate since January 2017. The jobs gained during the month were primarily concentrated in the public sector, which added 45,000 full-time jobs to the workforce.
In the commodities space, the price of gold lost 0.64 percent this week to hit US$2,633.14 per ounce on Friday at 4:00 p.m. EST, while silver sank 1.22 percent to US$30.98 per ounce. Copper was unchanged, ending at US$4.20 per pound on the COMEX. More broadly, the S&P GSCI (INDEXSP:SPGSCI) was down 0.8 percent to close the week at 531.4.
Equity markets were mixed this week. The S&P 500 (INDEXSP:INX) moved up 0.83 percent to end Friday at 6,090.28, while the Nasdaq-100 (INDEXNASDAQ:NDX) gained 3.06 percent to come in at 21,617.28. For its part, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 0.63 percent to 44,642.51.
Find out how the five best-performing Canadian mining stocks performed against that backdrop.
Data for this article was retrieved at 4:00 p.m. EST on December 6, 2024, using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Sanu Gold (CSE:SANU)
Weekly gain: 200 percent
Market cap: C$22.67 million
Share price: C$0.15
Sanu Gold is working to advance its Bantabaye, Diguifara and Daina gold projects in West Africa’s Siguiri Basin in Guinea. They cover a combined 28,000 hectares, and all three sites have seen exploration in 2024.
The company has identified five priority targets at Bantabaye. The most recent results, released on July 10, include 1.94 grams per metric ton (g/t) gold over 14 meters, including a 1 meter intersection of 29.89 g/t gold.
Target areas at Daina are open along trend in both directions. On November 12, Sanu announced the start of a new drill program geared at understanding key targets that still need to be tested
An inaugural drill program began at Diguifara, Sanu’s third property, on October 28. At least 2,000 meters of air-core and reverse-circulation drilling were planned across 19 holes. The company has identified three undrilled, high-priority targets along 3.2 kilometers of strike, where previous auger work revealed grades up to 4.8 g/t gold.
Sanu’s shares soared this week after it announced a strategic partnership. Montage Gold (TSXV:MAU,OTCQX:MAUTF) will acquire a 19.9 percent stake in Sanu by issuing 2.3 million shares worth C$5.5 million.
Additionally, Sanu announced a non-brokered private placement for up to C$4.56 million. It is led by members of the Lundin Family, which is expected to gain a 10 percent stake in the company.
Montage and the Lundin Family join AngloGold Ashanti (NYSE:AU,JSE:ANG), which holds a 14 percent interest in Sanu, and Capital Dl, which has a 10 percent interest.
2. New Zealand Energy (TSX:NZ)
Weekly gain: 66.15 percent
Market cap: C$22.81 million
Share price: C$1.08
New Zealand Energy is an oil and gas producer focused on projects in New Zealand’s Taranaki Basin.
According to the company’s December 2023 oil and gas reserves summary, it holds proven and probable quantities of 1.64 million barrels of oil equivalent across a range of producing, non-producing and undeveloped projects.
The company spent 2024 working to redevelop verified gas condensate reserves at the Tariki Field, starting with the Tariki-5 well in September and the Tariki-5A well in November.
The projects are a 50 percent joint venture with L&M Energy.
Results from testing at the Tariki-5 well were released on October 25. They revealed a “worst-case scenario” as drilling encountered a fault above the gas reservoir. The company said it is working on a plan to drill a hole intended to intersect the reservoir up-dip of the fault. If successful, it is expected to be a good gas-producing well.
New Zealand Energy released preliminary results from the Tarikii-5A well on Monday (December 2). In the announcement, the company said the well intersected the target Tariki sands and is interpreted to bear gas. The next testing steps are planned for the week of December 16, and gas production and sales will start shortly after. The company expects the reservoir to deliver a minimum of 10 terajoules per day.
3. Northern Graphite (TSXV:NGC)
Weekly gain: 58.82 percent
Market cap: C$17.04 million
Share price: C$0.135
Producer and developer Northern Graphite is the only miner of flake graphite in North America.
The company owns the Lac des Iles mine in Québec, Canada, which hosts an indicated amount of 213,000 metric tons of graphitic carbon, with an additional inferred amount of 106,000 metric tons.
In its Q2 results, released on August 29, Northern reported that it had increased production at Lac des Iles to 4,082 metric tons, up 59 percent from the 2,574 metric tons produced in the first quarter.
The company is working to boost production at the site to its 25,000 metric ton nameplate capacity. Its most recent news was its Q3 operating and financial results, which were released on November 28.
Northern highlighted substantial production volumes from the Lac des Iles mine and said it achieved record sales after moving production to a four-shift, seven-day-per-week schedule. The company also started permitting during the fourth quarter and said it expects a new open pit to be open in the new year.
4. Athena Gold (CSE:ATHA)
Weekly gain: 57.14 percent
Market cap: C$10.93 million
Share price: C$0.055
Athena Gold is an explorer focused on advancing its Excelsior Springs and Laird Lake projects.
Excelsior Springs is located within the Walker-Lane tectonic zone in Nevada, US. It saw historic drilling from the mid-1980s through 2011, with 84 reverse-circulation drill holes. Since acquiring the property from Nubian Resources (TSXV:NBR,OTCQB:NBRFF) in December 2020, the company has drilled an additional 29 holes.
The most recent news from the project came on August 29, when Athena announced it had expanded the project through the acquisition of the historic Blue Dick mine. The mine was discovered in 1870 and was host to high-grade silver deposits. The acquisition expands the Excelsior Springs land holdings to 1,675 hectares.
On September 11, Athena entered into a binding letter of intent with Libra Lithium to acquire a 100 percent interest in the Laird Lake and Oneman Lake gold projects in Ontario, Canada. The agreement will create a new Canadian subsidiary, with Athena holding an 80.1 percent ownership stake and Libra holding 19.9 percent.
On December 2, Athena reported results from a reconnaissance and prospecting program at Laird Lake. The program delivered high-grade samples of up to 373 g/t gold, the highest ever returned from the site. The company said the results will guide a property-wide geochemistry survey during the first half of 2025.
5. Kingsmen Resources (TSXV:KNG)
Weekly gain: 54.76 percent
Market cap: C$13.54 million
Share price: C$0.65
Kingsmen Resources is an exploration company working to advance its Las Coloradas polymetallic project in the Parral mining district of Chihuahua, Mexico. The 845 hectare brownfield project consists of 15 mining concessions hosting mineralized silver, zinc, lead, gold, copper and zinc deposits.
The most recent news from the project came on Monday, when Kingsmen identified a new silver-gold target at the property during a field reconnaissance program before an upcoming drill program.
The new Saddle target is between two prominent magnetic highs, where sediment and structures are prospective for precious metal anomalies. The company said the geophysics indicates the potential for significant blind mineralization, and it has added the find to its list of priority drill targets.
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many companies are listed on the TSXV?
As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.
Together the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
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.
How do you trade on the TSXV?
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.