The S&P/TSX Venture Composite Index (INDEXTSI:JX) slumped 7.87 points this past week to close at 549.08.
Minutes from the Bank of Canada’s January meeting, during which the governing council decided to keep interest rates unchanged at 5 percent, were released last Wednesday (February 7). They show that while the council believes the economic slowdown has helped relieve inflationary pressures, just over half of the components of the consumer price index (CPI) have been growing at a rate above 3 percent. That indicates persistence in broad-based drivers of inflation.
The council also said it is concerned about shelter prices, noting that a rebound in the housing market in the spring could keep CPI numbers above its 2 percent target, even if other components continuing to approach the target.
The council has not ruled out further rate hikes, but said it’s likely that future discussions will shift to how long to maintain the current level. It is not yet ready to set a timeline for beginning rate cuts.
Also this past week, Statistics Canada released its labor force survey. The data shows that employment grew by 37,000 in January, while the unemployment rate fell by 0.1 percent to reach 5.7 percent, the first drop since December 2022.
How have TSXV-listed mining stocks fared against that backdrop? Here’s a look at the five biggest gainers last week.
1. Wolfden Resources (TSXV:WLF)
Weekly gain: 80 percent; market cap: C$14.01 million; current share price: C$0.09
Wolfden Resources is an exploration and development company focused on base and precious metals projects in North America, primarily the advancement of its wholly owned Pickett Mountain property in Penobscot County in Maine, US. It hosts a high-grade polymetallic volcanogenic massive sulfide deposit and sits within the Gander Terrane.
The most recent news from the company came on February 2, when it announced the potential denial of a rezoning application for Pickett Mountain. According to a release, following a deliberation on December 13, commissioners for the Maine Land Use Planning Commission recommended that Wolfden’s application be denied. Wolfden noted that commission staff preparing documents for the deliberation concluded that the evidence weighs in favor of approval.
The rezoning application would allow Wolfden to rezone a 374 acre parcel at the Pickett Mountain site from general management to planned development for the construction, operation and reclamation of an underground mine.
2. Lithium Energi Exploration (TSXV:LEXI)
Weekly gain: 54.55 percent; market cap: C$11.14 million; current share price: C$0.085
Lithium Energi Exploration is a lithium brine exploration and development company focused on four projects covering 72,000 hectares in the Catamarca, Argentina, portion of the Lithium Triangle. Its flagship Antofalla North project covers 16,000 hectares and is fully permitted for 10 exploration wells; initial drilling began in June 2023.
The company’s other projects are Antofalla South, which covers 38,500 hectares and was most recently explored in August, and Hombre Muerto North, which covers 1,800 hectares in the Hombre Muerto Salar. The company also holds a 20 percent interest in the Trila joint venture, with the remaining 80 percent owned by the Global Oil Management Group.
Lithium Energi’s most recent news came on January 29, when it released its condensed interim consolidated financial statements for the three and nine months ended on November 30, 2023.
3. Omineca Mining and Metals (TSXV:OMM)
Weekly gain: 38.46 percent; market cap: C$16.91 million; current share price: C$0.09
Omineca Mining and Metals is a gold development and exploration company with interests in the Cariboo Mining District in BC, Canada. The company’s flagship asset is the Wingdam project, which hosts a 2.4 kilometer placer-bearing channel 50 meters beneath Lightning Creek. Omineca intends to extract gold from the site with freezing technology and gravity separation using an existing reusable water supply, meaning no chemicals or leaching.
The company released results from two geotechnical drill holes this past Wednesday, one of which intercepted 8 meters grading of 25.41 grams of gold per cubic meter. These results build on 2012 bulk testing at the site, which recovered 173.4 ounces from gold-bearing gravels averaging 1.2 meters thick over a channel width of 23.5 meters.
4. Gensource Potash (TSXV:GSP)
Weekly gain: 33.33 percent; market cap: C$33.73 million; current share price: C$0.08
Gensource Potash is a fertilizer development company focused on the development of its Tugaske project within its Vanguard land holdings, which are located 150 kilometers northwest of Regina, Saskatchewan, in Canada.
Once complete, the project will produce a minimum of 250,000 metric tons (MT) of muriate of potash per year. Additionally, the company has negotiated with HELM Fertilizer to purchase 100 percent of annual production for the first 10 years. Gensource is currently seeking funding to begin construction on the project.
The company’s most recent news came on December 7.
5. Abcourt Mines (TSXV:ABI)
Weekly gain: 30 percent; market cap: C$22.67 million; current share price: C$0.065
Abcourt Mines is a gold explorer with properties in the Abitibi region of Québec, Canada.
The company’s flagship project is the Sleeping Giant mine, located 150 kilometers north of Val-d’Or. The site covers 458 hectares and consists of 69 mining claims. It also hosts a mill that is currently on care and maintenance, but is capable of processing approximately 250,000 MT of ore per year. A resource estimate from January 2023 shows indicated reserves of 173,300 ounces of gold, as well as 248,300 ounces of gold in the inferred category.
The most recent news from the project came on January 31, when Abcourt announced drill results with a highlight interval of 15.67 grams per MT gold over 3.2 meters, including 29.29 grams per MT gold over 0.5 meters.
FAQs for TSXV 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, while 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 September 2023, there were 1,713 companies listed on the TSXV, 953 of which were mining companies. Comparatively, the TSX was home to 1,789 companies, with 190 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 Weekly TSXV Performers article was retrieved at 1:00 p.m. PST on February 9, 2024, using TradingView’s stock screener. Only companies with market capitalizations greater than C$10 million prior to the week’s gains are included. Companies within the non-energy minerals and energy minerals 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.
