5 Top Weekly TSXV Stocks: Gold Stocks Gain as Metal Soars Above US$2,200
The S&P/TSX Venture Composite Index (INDEXTSI:JX) gained 1.41 points last week to close at 552.31.
At its latest meeting this past Tuesday (March 19) and Wednesday (March 20), the US Federal Reserve decided to continue holding its benchmark interest rate at 5.25 to 5.5 percent. Chair Jerome Powell indicated that before it begins reducing rates, the central bank wants to see more data showing inflation is moving toward its 2 percent target.
He also said the Fed is still anticipates three cuts before the end of 2024, but declined to say when they will begin.
Markets responded positively to the announcement, as did gold, which traded above the US$2,200 per ounce mark through much of the trading session on Wednesday and into Thursday (March 21).
The gold price has since retreated from these highs on the back of data such as housing starts for February, which rose 10.7 percent over January. The news helped push the US Dollar Index to a monthly high of 104.64 on Friday (March 22).
Statistics Canada released Consumer Price Index figures this past Tuesday. They show inflation is continuing its downward trend, with a year-on-year increase of 2.8 percent in February versus January’s 2.9 percent. Inflation has now come in below expectations for the second month in a row, solidifying predictions that rate cuts will come in mid-2024.
Against that backdrop, how did TSXV-listed mining stocks perform? Here are the five top gainers this past week.
1. Awalé Resources (TSXV:ARIC)
Weekly gain: 113.89 percent; market cap: C$21.92 million; current share price: C$0.385
Awalé Resources is a copper and gold explorer focused on its Odienné project in Côte D’Ivoire.
The site, located in the country’s northwest, covers an area of 2,462 square kilometers across two granted permits and five under application; two are being advanced as part of an earn-in joint venture with Newmont (TSX:NGT,NYSE:NEM). Newmont has the chance to earn up to 65 percent ownership of the permits via exploration expenditures of US$15 million.
Awalé’s most recent news came on Monday (March 18), when it announced it has encountered multiple high-grade intercepts at the BBM target at Odienné, including 2.5 grams per metric ton (g/t) gold equivalent over 44 meters from 131 meters downhole. In its press release, the company said a follow-up drill program will begin in April, and that assay results from the asset’s Charger target are expected soon.
Shares of Awalé saw strong gains this past Wednesday alongside the surging gold price.
2. Hannan Metals (TSXV:HAN)
Weekly gain: 64 percent; market cap: C$39.39 million; current share price: C$0.41
Explorer Hannan Metals is focused on advancing gold, silver and copper deposits in Latin America.
The San Martin project is a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government agency established in 2004 to secure stable resources and fuel supplies. Under the terms of the agreement, JOGMEC can earn up to a 75 percent stake in the project if all its funding goals are met.
The site is located northeast of Tarapoto, Peru, and hosts a copper and silver system with 120 kilometers of combined strike. Exploration has shown grades at the Tabalosos target of 4.9 percent copper and 62 g/t silver over 2 meters.
In addition to the JOGMEC joint venture, Hannan owns a separate copper and silver project in the San Martin region that consists of 27 mining concessions over 267 square kilometers. The company’s third project, located 300 kilometers from the San Martin sites, is the Valiente project, which hosts a previously unknown porphyry and epithermal mineralized belt within a 140 kilometer by 50 kilometer area containing copper, gold, molybdenum and silver.
This past Wednesday, Hannan said it has discovered a new style of sediment-hosted copper-silver mineralization at San Martin. Highlights include 3.1 percent copper and 65 g/t silver over 5.8 meters from surface channel sampling.
3. Compass Gold (TSXV:CVB)
Weekly gain: 53.85 percent; market cap: C$10.92 million; current share price: C$0.10
Compass Gold is advancing its Sikasso property in Mali into a small-scale mining operation.
The site consists of a 1,176 square kilometer land package that hosts four primary gold trends. To date, the company has completed 44,206 meters of drilling at the property; it has confirmed bedrock mineralization and identified four areas with open-pit mining potential: Tarabala, Massala West, Farabakoura and Samagouela.
The most recent news from Compass came on February 5, when the company said that assay results from initial trenches completed at the Massala target in September had encountered grades of 4.13 g/t gold over 20 meters, including an intersection of 19.19 g/t gold over 4 meters.
4. Strikepoint Gold (TSXV:SKP)
Weekly gain: 41.67 percent; market cap: C$17.1 million; current share price: C$0.085
Strikepoint Gold is a gold exploration company with a portfolio of assets located in BC, Canada, and Nevada, US.
Its Cuperite project in Nevada is located on the Walker Lane Gold Trend and is near Allegiant Gold’s (TSXV:AUAU,OTCQX:AUXXF) Eastside project, which hosts a 1.4 million ounce gold resource. This past Tuesday, Strikepoint said it has commenced drilling at Cuperite, and anticipates a 5,000 meter program across seven to 10 holes.
Strikepoint’s Canadian operations consist of the Willoughby and Porter projects, located in Northern BC; however, the company has not released news from these assets since the end of 2022.
In addition to its update from Cuperite, the company also reported this past Monday that it has closed the final tranche of a private placement, raising gross proceeds of C$2 million over two rounds. It will use the money primarily for activities at Cuperite, with additional funds going to claim maintenance, general working capital and other expenses.
5. Golconda Gold (TSXV:GG)
Weekly gain: 33.33 percent; market cap: C$17.11 million; current share price: C$0.26
Golconda Gold is a gold production company with mining operations in South Africa and New Mexico, US.
The company acquired the Galaxy mine near Barberton, South Africa, in 2015. It is one of the oldest mines in the country. Golconda expanded its mining holdings again in May 2021, when it acquired the Summit mine and Banner mill located in Grant County, New Mexico. The site has hosted mining activities since the late 1800s.
In its most recent financial and operating results, which were released in November 2023, Golconda indicated that through the first three quarters of 2023 it produced 5,025 ounces of gold from the two operations. During the third quarter, it generated revenue of US$3 million from the sale of 1,814 contained ounces of gold.
The company saw gains this week along with the surging gold price.
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 March 22, 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.
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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.
Editorial Disclosure: Awalé Resources is a client of the Investing News Network. This article is not paid-for content.