The S&P/TSX Venture Composite Index (INDEXTSI:JX) lost ground this past week, dropping 6.65 points to close at 530.85. The decline came as other major indexes gained after the final US Federal Reserve meeting of the year.
In a post-meeting statement, Fed Chair Jerome Powell said the Federal Open Market Committee is pleased with the overall progress made against inflation so far, but isn't willing to declare victory. Although interest rate hikes are unlikely to continue and 2024 may bring cuts, the central bank will continue to make decisions based on available data.
Markets reacted strongly to the news, with the Dow Jones Industrial Average (INDEXDJX:.DJI) reaching an all-time high, breaking through 37,000 points on Wednesday (December 13). The NASDAQ 100 (INDEXNASDAQ:NDX) also jumped to record highs, while the S&P 500 (INDEXSP:.INX) came close, closing above 4,700 points the first time since January 2022. North of the border, the S&P/TSX Composite Index (INDEXTSI:OSPTX) saw a significant gain, jumping almost 600 points.
Meanwhile, the latest US consumer price Index data, released on Tuesday (December 12), shows a 3.1 percent all-items index increase over the past 12 months, down slightly from 3.2 percent year-on-year in October.
With markets on both sides of the border performing well this past week after the Fed's third pause in a row, where does that leave Canadian junior mining stocks? Keep reading to discover which companies performed the best.
1. Bayhorse Silver (TSXV:BHS)
Bayhorse Silver is a silver-focused company that is currently working to bring the Bayhorse silver mine in Oregon, US, back online. The mine was originally in operation until late 1984, but it closed when the price of silver dropped to under US$6 per ounce. Historic sampling during the 1980s identified grades of 2,146 grams per metric ton (g/t) silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.
Permits for operating the mine were previously rejected by Oregon’s Department of Geology and Mining Industries, which cited deficiencies in the company's application. Bayhorse said back in June that it was reviewing the baseline data in the submission and would be reapplying for the permits later in the year.
In its most recent announcement, released on November 14, the company said it was mobilizing for an underground drill program at Bayhorse. The initial program will test the 300 foot strike length of the Big Dog target.
Shares of Bayhorse have been rising since the end of October, and the company has said the surge may be tied to positive news from Hercules Silver (TSXV:BIG,OTCQB:BADEF), whose Hercules project is just 44 kilometers from the Bayhorse site.
2. P2 Gold (TSXV:PGLD)
P2 Gold is a junior gold exploration and development company with projects in the US and Canada. Its US-based project is the Gabbs gold-copper project, located 233 kilometers from Reno, Nevada. The asset consists of 543 unpatented lode claims and one patented mining claim covering 4,500 hectares.
In a preliminary economic assessment from September 11, P2 said Gabbs hosts an estimated indicated and inferred mineral resource of 895,000 ounces of gold, 1.89 million ounces of silver and 138,000 metric tons (MT) of copper.
The BAM gold-copper project is located within the Golden Triangle in BC, Canada, and consists of 64 mineral tenures over 27,000 hectares. An initial mineral resource estimate for the site’s Monarch gold zone, released on January 24, shows an inferred resource of 520,000 ounces of gold and 2.21 million ounces of silver.
Although the company has not released news this past week, its share price climbed significantly over the period.
3. Clean Air Metals (TSXV:AIR)
Clean Air Metals is a junior platinum-group metals explorer that is focused on its Thunder Bay North critical minerals project. The site lies within a region that hosts several mining operations, including the Lac Des Iles mine, owned by Impala Platinum Holdings (OTCQX:IMPUF,JSE:IMP), and the Eagle mine, owned by Lundin Mining (TSX:LUN,OTC Pink:LUNMF).
In its most recent resource estimate for Thunder Bay North, released on May 4, the company reported indicated and inferred resources of 649,100 ounces of platinum, 677,700 ounces of palladium, 49,100 ounces of gold, 1.3 million ounces of silver, 64,600 MT of copper and 38,600 MT of nickel.
Shares of Clean Air have been trending upward since the company received a three year exploration permit for Thunder Bay North from the Ontario Ministry of Mines on November 27. The permit will allow Clean Air to continue exploration of the site’s Escape and Current deposits.
4. GoldQuest Mining (TSXV:GQC)
GoldQuest Mining is an exploration and development company focused on assets in the San Juan province of the Dominican Republic. Its flagship asset is the Romero project, which hosts the Romero and Romero South deposits and is located in the firn's larger Tireo property. An estimate from GoldQuest's 2016 prefeasibility study indicates mine reserves of 840,000 ounces of gold, 980,000 ounces of silver and 62,000 MT of copper.
The company has been awaiting presidential approval for its exploitation license since 2018, which has left it largely unable to proceed. GoldQuest has been working to improve local sentiment and trust toward the company and the Romero project, and earlier this year a poll showed that 67.7 percent of the local community supported the project.
Shares of GoldQuest rose 43.75 percent this past week, although the company did not release news.
5. Tsodilo Resources (TSXV:TSD)
Tsodilo Resources is a diamond and metals exploration company operating in Botswana. Its projects include the Xaudum iron project, which has high concentrations of iron, silicon dioxide, aluminum oxide and phosphorus.
Since June 2021, the company and its subsidiary Gcwihaba Resources have been involved in a dispute with Botswana over the renewal of prospecting licenses for Xaudum. Of the five renewals submitted, four were approved, but one was rejected as part of it was in the buffer zone around the Okavango Delta UNESCO World Heritage Property.
Tsodilo and Gcwihaba announced on November 7, 2022, that they would be commencing legal action against Botswana's Ministry of Minerals and Energy. In their grievance, they noted that the license has existed since 2008, six years prior to the establishment of the buffer zone, and has since been renewed and regranted without controversy.
Shares of the company saw gains this past week, when Tsodilo announced on Friday (December 15) that the High Court of Botswana has ruled in its favor, stating that the rejection was “illegal, unreasonable and or irrational.” The court ordered the ministry to renew the application “subject only to justifiable safeguards necessary for the protection of the heritage area.”
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.
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.
INN. (2023-12-17 22:40:00). investingnews.com
