Stock movers for the week of December 2, 2013:
On Monday,
Paladin Energy Ltd. (TSX: T.PDN,
Stock Forum) climbed 7.5% to 43 cents as investors assessed the news the uranium explorer has been in ongoing discussions with a number of parties interested in acquiring a minority interest in the Langer Heinrich uranium mining operation in Namibia. Interested parties have had access to an updated data room established for the purposes of this process and site access has been made available to selected interested parties with these visits now largely complete. Discussions relating to commercial terms have commenced and Paladin management will make a recommendation on its preferred partner to the Paladin board at the conclusion of these negotiations.
Belo Sun Mining Corp. (
TSX: T.BSX,
Stock Forum) rose 2.4% to 43 cents after the gold explorer announced that the Environmental Council of Para State, Brazil (COEMA) has approved the environmental impact assessment (EIA) for Belo Sun's Volta Grande project. The approval of the EIA and receipt of the preliminary license (LP) is a key milestone in the advancement of the project towards construction phase. "This completes an extensive regulatory process and represents an important step in bringing the Volta Grande project to production,” said Mark Eaton, President and CEO. “We want to acknowledge the valuable input and support of the local communities as well as the Para authorities for their review and approval of our submission."
On Tuesday,
Peregrine Diamonds Ltd. (
TSX: T.PGD,
Stock Forum) climbed 52.4% to 64 cents as investors assessed the news the diamond miner’s 222.1 dry tonne bulk sample from the CH-6 kimberlite pipe on Peregrine's Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, returned a diamond grade of 2.70 carats per tonne. The resulting diamond parcel consisted of 600.5 carats of commercial-size (+0.85 mm) stones, including 48 diamonds over one carat in size and 137 diamonds over 0.50 carat in size, with the largest diamond weighing 3.54 carats. A very significant portion of the parcel is gem diamonds. According to the press release, the CH-6 pipe is one of at least seven kimberlite pipes at Chidliak that are potentially economic. "This first batch of diamond results from our 2013 bulk sample establishes CH-6 as one of the highest grade kimberlites in the world,” said Eric Friedland, CEO. “The quality of the diamonds is excellent and we are looking forward to obtaining the first independent diamond value for CH-6 in early 2014, and to establish a resource later that year.”
Canada Carbon Inc. (
TSX: V.CCB,
Stock Forum) rose 28.6% to 13.5 cents after the graphite-focused company announced it has begun a second drilling program at its Miller graphite project, located in GrenvilleTownship, Quebec. The company has engaged George Downing Estate Drilling Ltd. to complete a minimum of 1,000 meters of NQ-sized diamond drill holes. The drilling is designed to further extend graphite mineralization at depth and along strike, and to drill test three VTEM anomalies that were recently identified. The drilling is expected to be completed within two weeks.
On Wednesday,
CBM Asia Development Corp. (
TSX: V.TCF,
Stock Forum) gained 8.3% to 6.5 cents after the exploration and development company provided a review of its operations in Indonesia's emerging coalbed methane industry as well as an update on the status of the company's current financing activities. To date the company and its operating partners have successfully drilled and tested a total of eight coalbed methane exploration wells at two Production Sharing Contract (PSC) areas in Indonesia. This resulted in 981 billion cubic feet of recoverable prospective resources net to the company. Given the company has raised a total of $34 million to date, this equates to overall finding costs of approximately $0.03 per million cubic feet. The coalbed methane gas sales price in Indonesia ranges from $7.50 to nearly $20 per million cubic feet. If the company is successful at producing and selling at these prices, gross revenues could range from $7.5 to nearly $20 billion.
Southgobi Resources Ltd. (
TSX: T.SGQ,
Stock Forum) was up 3.6% to 87 cents. The stock is reacting to news that the coal production and development company’s board will meet on Thursday, Dec.12, 2013 to consider and approve the restated financials. The restated financials of the company for 2011 and 2012 will be filed before TSX market open. This follows a review by the company of its prior revenue recognition practices for its coal sales in the fourth quarter of 2010, full year 2011 and in the first half of 2012. This review has been conducted in consultation with PricewaterhouseCoopers LLP (PwC), the company's current auditors, and Deloitte LLP, the company's auditors during the 2010 and 2011 fiscal years.
As a result of this review, the company has determined that certain revenue transactions were previously recognized in the company's consolidated financial statements prior to meeting relevant revenue recognition criteria. These transactions relate to coal that had been delivered to the customer's stockpile in a stockyard located within the SouthGobi's Ovoot Tolgoi mining license area in Mongolia, the location at which title transferred, but from which the coal had not been collected by the customers. The restatement of the company's consolidated financial statements will reflect a change in the point of revenue recognition from: (A) the delivery of coal to the customer stockpiles within the stockyard to (B) the loading of coal onto the customer's trucks at the time of collection.
In Thursday trading,
CBM Asia Development Corp. (
TSX: V.TCF,
Stock Forum) rose 23.1% to eight cents after the exploration and development company announced that it is in the process of executing the $3.8 million private placement announced on Nov. 25, 2013. The company has completed a first tranche of 2.55 million common shares at a price of $0.10 per share for gross proceeds of $255,320.
Colorado Resources Ltd. (
TSX: V.CXO,
Stock Forum) fell 13.5% to 16 cents as investors assessed the news of the company's completion of the 2013 drill program at its North ROK property and the results of the remaining 10 holes. In the seven months since the discovery in March 2013, the company has completed 11,448 metres of drilling in 29 holes and has also completed comprehensive programs of IP surveying, airborne and ground magnetic surveying, geochemical surveying and geological mapping. Highlights of the recent results include 131.2 metres of 0.39% copper and 0.56 grams per tonne gold and 225.7 metres of 0.25% copper and 0.27 grams per tonne gold.
And, on Friday
Orvana Minerals Corp. (
TSX: T.ORV,
Stock Forum) rose 8.1% to 40 cents after the mining company announced financial and operating results for the fourth quarter and the fiscal year ended Sept. 30, 2013. Orvana reported adjusted net income in fiscal 2013 of $12.4 million or $0.09 per share excluding certain non-recurring items and net income of $32.6 million or $0.24 per share. The company recorded adjusted net income in the fourth quarter of 2013 of $7.8 million or $0.06 per share and net income of $1.1 million or $0.01 per share. Orvana produced 80,541 ounces of gold, 17.3 million pounds of copper and 1,017,811 ounces of silver and had sales of 74,087 ounces of gold, 16.3 million pounds of copper and 1,073,394 ounces of silver in fiscal 2013 compared to production of 55,929 ounces of gold, 15.4 million pounds of copper and 716,280 ounces of silver and sales of 55,052 ounces of gold, 14.7 million pounds of copper and 669,810 ounces of silver in fiscal 2012.
Champion Iron Mines Ltd. (
TSX: T.CHM,
Stock Forum) climbed 3.6% to 28.5 cents as investors assessed the news the exploration and development company has entered into a definitive arrangement agreement with Mamba Minerals Ltd., listed on the Australian Stock Exchange, pursuant to which Mamba, together with a wholly-owned Canadian subsidiary, will acquire all of the outstanding common shares of Champion. The business combination once completed will create a new iron ore company to be named "Champion Iron Limited" with a significant holding in one of the world's leading iron ore regions. As part of the arrangement agreement, Champion shareholders will receive 11 Mamba ordinary shares for every 15 Champion common shares they hold.