logo-loader

Toronto main board weaker; Suncor Energy, Osisko Mining, Kinross Gold and Teck Resources in focus

Last updated: 21:57 14 Nov 2011 GMT, First published: 20:57 14 Nov 2011 GMT

no_picture_pai

Toronto's main market dropped Monday morning, as doubts over the eurozone's ability to resolve the debt crisis plagued investors, even as new governments emerged in Italy and Greece.
 
In early afternoon, the S&P/TSX Composite Index dropped 42.09 points, or 0.34%, to 12,234.76, while the more junior S&P/TSX Venture Composite fell 2.75 points, or 0.17%, to 1,638.56.
 
Commodities were mostly in the red, with gold futures for December down 0.4% to $1,781.00 an ounce, and silver futures falling 1.33% to $34.22 an ounce. Base metal copper contract prices, however, rose over 1% to $3.52 per pound.
 
Crude oil futures for December delivery fell 1.24%, or $1.23, to $97.76 per barrel.
 
The latest chapter in the eurozone crisis saga has seen a change of leadership in two of the region's endebted nations, with former European Union commissioner Mario Monti leading Italy as its new prime minister while in Greece, Lucas Papademos was sworn in as prime minister Friday and is expected to pass the latest bailout package agreed in October.
 
Investors remain weary and cautious over the latest developments, however. Berlusconi's party is still the largest political force in parliament, and it could attempt to stall the necessary reform agenda in order to advance its own political agenda, some analysts predict. Yields on both the 5-year and 10-year Italy bonds still remain above 6.5%, after reaching the dangerously unsustainable 7% level last week.
 
In Toronto, most sectors were in the red, with metals and mining leading the losses, followed by energy stocks as Suncor Energy (TSE:SU) edged down.
 
Osisko Mining (TSE:OSK) was down more than 2%, while Lundin Mining (TSE:LUN) and copper heavyweight Teck Resources (TSE:TCK.B)  each fell around 0.78%.
 
Gold giant Kinross Gold (TSE:K) retreated 0.69%, while peer Barrick Gold (TSE:ABX) dropped a heftier 1.12%.
 
In corporate news, Twin Butte Energy (TSE:TBE) said it will buy Emerge Oil & Gas (TSE:EME) for about $105 million in an all-share deal to increase its oil reserves and production. Twin's shares rose over 3%, while Emerge's shares surged over 18% higher.
 
Food and beverage maker GLG Life Tech Corp (TSE:GLG) saw its shares sink more than 22% Monday after it posted a third-quarter loss due to weak demand and higher costs.
 
Uranium producer Cameco (TSE:CCO)(NYSE:CCJ) Monday increased its hostile offer for uranium junior Hathor Exploration (TSE:HAT) to $4.50 per share, taking on a friendly bid for Hathor from mining giant Rio Tinto (NYSE:RIO)(LON:RIO). The new offer from Cameco, Canada's largest uranium producer, values Hathor at around $625 million. Cameco's improved bid expires on November 29.
 
In October, Rio Tinto bid $578 million, or $4.15 per share for Hathor, beating Cameco's initial $3.75 per share offer tabled in late August. Hathor's board has backed Rio's offer.
 
Temex Resources Corp. (CVE:TME) said Monday that near surface exploration drilling on the Upper Hallnor Mine area of its joint venture Whitney property in northeastern Ontario returned positive results, sending shares up. The company intersected 2.22 grams per tonne (g/t) of gold over 35.7 metres, including 2.78 g/t gold over 15.8 metres and 10.15 g/t gold over 3.3 metres in hole TW11-163, at shallow depths.
 
Talison Lithium (TSE:TLH) saw its first quarter of fiscal 2012 earnings fall over 70 percent as it reported a hefty loss from the fair value adjustment of certain assets, and a weak currency exchange. For the July-to-September period, the lithium producer posted net income of AUD $1.61 million (USD $1.64 million), or AUD $0.02 per share (USD $0.02), down 73 percent from AUD $5.87 million (USD $6.0 million), or AUD $0.11 per share (USD $0.11), a year ago.

 

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

47 minutes ago