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The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.87 percent on the week to close at 603.95 on Friday (November 1). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) was down 0.82 percent to 24,255.16.
Statistics Canada released its August GDP figures on Thursday (October 31). The data indicated GDP remained flat following a 0.1 percent increase in July. Headline data suggests finance, insurance and public administration sectors were up 0.1 percent while goods-producing sectors fell by 0.4 percent to their lowest since December 2021.
On a more granular level, the resource sector saw a 0.6 percent gain in August, led by 1.5 percent increase in oil and gas. Meanwhile, mining and quarrying posted a 0.7 percent increase, marking a fifth month in a row of gains. Iron ore mining increased 4.7 percent, while there was a 2.8 percent increase in copper, nickel, lead and zinc mining.
South of the border, three key releases this week painted a mixed picture of the US economy before a divisive presidential election on November 5, and the US Federal Open Market Committee’s meeting on November 6 and 7.
First, on Wednesday (October 30), the US Bureau of Economic Analysis (BEA) released advanced GDP estimates for Q3. The data shows the pace of economic growth in the US may be slowing, posting a 2.8 percent increase, down from the 3.0 registered in the second quarter of the year. The numbers fell short of analysts’ expectations of 3.1 percent.
This was followed by the BEA’s release of September’s personal consumption expenditures price index data on Thursday. The index is the favored indicator of inflation by the US Federal Reserve in making its rate policy decisions. Data for the month showed a 0.2 percent month-on-month increase and was in line with analysts’ expectations. On a yearly basis the data indicated 2.1 percent growth to inflation, down from 2.6 percent just six months ago.
Lastly, the US Bureau of Labor Statistics released its October employment situation summary on Friday. The data indicates nonfarm payrolls remained virtually unchanged, with just 12,000 jobs added during the month — that’s well short of the 110,000 expected by analysts. Unemployment remained at 4.1 percent, with 7 million people unemployed.
The agency notes that while disappointing, the lower figures are likely temporary as it’s the first labor force survey conducted since the dual impacts of hurricanes Helene and Milton. The bureau also said the collection period for October was toward the shorter end of the usual 10 to 16 days and likely had a larger influence on its data.
Gold continued to set new highs, climbing to US$2,787.04 per ounce on Wednesday before falling to US$2,733.88 on Friday at 4:00 p.m. EDT. Silver also remained elevated, trading as high as US$34.41 per ounce on Wednesday before regressing to US$32.44 on Friday. Copper was largely flat, closing at US$4.39 per pound on the COMEX.
More broadly, the S&P GSCI (INDEXSP:SPGSCI) fell 1.27 percent to close at 534.79.
Markets were in decline this week, with the S&P 500 (INDEXSP:INX) shedding 1.8 percent to finish at 5,728.81, and the Nasdaq-100 (INDEXNASDAQ:NDX) declining 2.06 percent to close Friday at 20,033.14. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.5 percent to reach 42,052.18.
Find out how the five best-performing Canadian mining stocks performed against that backdrop.
1. Wolfden Resources (TSXV:WLF)
Weekly gain: 166.67 percent
Market cap: C$14.83
Share price: C$0.08
Explorer and developer Wolfden Resources is focused on base and precious metals projects in North America.
Up until February of this year, the company was working to advance its Pickett Mountain property in Maine, US. The site hosts a high-grade polymetallic massive sulfide deposit and sits within the Gander Terrane.
However, the company announced on February 15 that its rezoning application for the property was denied by commissioners for the Maine Land Use Planning Commission, despite evidence that weighed in favor of the approval.
While the company has not provided an update on Pickett Mountain, it said on Tuesday (October 29) that it has entered into an option agreement to earn a 75 percent stake in the Rockland Property in the Walker Lane Trend in Nevada, US.
The terms of Wolfden’s agreement with Evergold (TSXV:EVER,OTC Pink:EVGUF) state that to earn an initial 51 percent interest it must complete US$1.18 million in exploration expenditures, including a minimum of 1,500 meters of drilling, and make cash payments totaling US$600,000 over three years by March 2028.
Wolfden can boost its stake to 75 percent by completing a prefeasibility study within five to eight years. It also holds first rights of refusal on the final 25 percent interest and royalties that can be purchased.
The 1,054 hectare property hosts a large epithermal gold-silver system with similar characteristics to Hecla Mining’s (NYSE:HL) neighboring Aurora project and has drill permits in place. The company said through due diligence it retrieved four rock and core assay reject samples containing between 1 gram per metric ton (g/t) gold and 10.4 g/t gold.
2. Argenta Silver (TSXV:AGAG)
Weekly gain: 151.61 percent
Market cap: C$62.572
Share price: C$0.39
Formerly Butte Energy, Argenta announced on October 24 that it was changing its name, and would commence trading under the new symbol AGAG. The change comes after the completion of its acquisition of the El Quevar silver project following the takeover of Silex Argentina for total consideration of US$3.5 million.
The 56,709 hectare site hosts the Yaxtche deposit, which holds an indicated resource of 45.3 million ounces of silver with an average grade of 482 g/t from 2.93 million metric tons of ore. Yaxtche also has an inferred resource of 4.1 million ounces of silver with an average grade of 417 g/t from 310,000 metric tons of ore.
The project has seen more than 100,000 meters of historic drilling and comes with permitting in place. The company says the site is home to a 100 worker camp, with power and transportation already in place.
Additionally, the company announced the appointment of Joaquin Marias as vice president of exploration and development. Marias is a geologist and has been active at El Quevar for more than 10 years.
In the announcement, Argenta also said it had completed a non-brokered private placement for gross proceeds of C$15.27 million, as well as an additional C$925,000 in the form of unsecured, non-interest bearing one year term loans.
3. Sabre Gold Mines (TSX:SGLD)
Weekly gain: 76 percent
Market cap: C$18.32
Share price: C$0.22
Sabre Gold Mines is working to advance its Copperstone gold project located in Western Arizona, US. The site consists of 546 unpatented federal mining claims and two state mineral leases across a total area of 13.8 square miles.
According to the company, historic mining at the property between 1987 and 1993 produced 514,000 ounces of gold from 5.6 million metric tons of ore with grades of 2.8 g/t. Further operations between 2012 and 2013 produced an additional 16,900 ounces of gold from 163,000 metric tons of ore with grades of 3.2 g/t.
A resource estimate from February 2023 demonstrates 300,000 ounces of gold in the measured and indicated categories from 1.21 million metric tons of ore with an average grade of 7.74 g/t gold. Additional inferred values stand at 197,000 ounces of gold from 970,000 metric tons with a grade of 6.3 g/t gold.
An August 2023 preliminary economic assessment presents a base-case scenario with after-tax net present value of US$61.8 million, an internal rate of return of 50.5 percent and a payback period of 1.8 years.
Shares of Sabre surged this week after it announced on Monday (October 28) that it has entered into an agreement to be acquired by Minera Alamos (TSXV:MAI,OTCQX:MAIFF).
4. Compass Gold (TSXV:CVB)
Weekly gain: 77.27 percent
Market cap: C$17.83
Share price: C$0.195
Compass Gold is an exploration and development company working to advance its Sikasso property in Mali into a small-scale mining operation. The site consists of a 1,176 square kilometer land package, which the company says makes it the largest ground position in Southern Mali, and hosts four primary gold trends.
To date, the company has completed 44,206 meters of drilling, confirming bedrock mineralization and identifying four areas with open-pit mining potential: Tarabala, Massala West, Farabakoura and Samagouela.
Compass’ most recent news came on Monday, when it entered into a joint production agreement to process ore from the Massala prospect at Sikasso at the nearby small mining facility owned by Malian business group SMAT.
The company said it will allow Compass to advance near-term objectives and expedite near-surface gold production with minimal capital investment. The company still needs to apply for a small mining license from the Malian government; this will allow it to produce 160,000 ounces over a four year period. Funds generated from production will allow the company to repay debts and pursue opportunities to expand production at Sikasso.
5. East Africa Metals (TSXV:EAM)
Weekly gain: 31.03 percent
Market cap: C$35.01
Share price: C$0.19
East Africa Metals is a gold explorer and developer focused on its Adyabo and Harvest projects in Ethiopia’s Tigray region. Its principal asset is Adyabo, in which it holds a 30 percent net profit interest; Tibet Huayu Mining (SHA:601020) owns the remaining 70 percent. The 195.2 square kilometer site hosts two mining licenses, Mato Bula and Da Tambuk, that are located in an area known for high-grade gold and copper mineralization.
East Africa Metals also owns a 70 percent share of the Harvest polymetallic project, which hosts the Terakimti mining license, as well as a 30 percent streaming interest in the Magambazi gold mine in the Tanga region of Tanzania.
The company saw gains this week alongside a surging gold price, but did not release news.
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.
Data for this 5 Top Canadian Mining Stocks article was retrieved at 12:00 p.m. EDT on November 1, 2024, using TradingView’s stock screener. Only companies trading on the TSX and TSXVwith market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
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.