The S&P/TSX Venture Composite Index (INDEXTSI:JX) dropped 30.85 points this past week to close at 552.33.
Statistics Canada released inflation data from December last Tuesday (January 16). It echoes the latest information from the US, showing that the consumer price index (CPI) rose 3.4 percent year-on-year, up 0.3 percent from November. The increase was spurred by higher prices for gasoline, which saw a 1.4 percent year-on-year bump versus a decline of 7.7 percent in November. Excluding gasoline, CPI came in at 3.5 percent for December, down from 3.6 percent the previous month.
Meanwhile, the US Department of Labor reported this past Thursday (January 18) that jobless claims had fallen to their lowest level since September 2022. The week ended January 13 saw 187,000 claims filed, 16,000 fewer than the previous week. Additionally, the week saw a drop of 26,000 in continuing claims.
Continued attacks by Yemeni Houthis in the Red Sea are forcing more companies to find alternate routes in an attempt to avoid the region. Additionally, drought conditions that began in Panama last year are forcing restrictions on vessel traffic through the Panama Canal and have reduced ship crossings by 36 percent.
The TSXV saw strong gains early in the week, but sank on following the release of Canada’s inflation data. Which mining companies went against the trend and posted gains? Read on to find out.
1. Bluestone Resources (TSXV:BSR)
Weekly gain: 139.13 percent; market cap: C$89.45 million; current share price: C$0.55
Bluestone Resources is a gold exploration and development company operating out of Guatemala. Its flagship property is the Cerro Blanco gold project, located near the town of Asunción Mita 160 kilometers from Guatemala City.
In the mineral resource estimate from July 2021, the company reported measured and indicated amounts of 3,089,000 ounces of gold and 13,445,000 ounces of silver at the site. Bluestone is also developing the Mita geothermal project, which will provide power for the mine when it is complete.
Shares in Bluestone soared this past Thursday, when the company announced that an amendment to its environmental permit for Cerro Blanco was approved by the Guatemalan government. The initial application for the site was for the development of an underground mine, but in November 2021 Bluestone applied for an amendment to switch to surface mining. The company said the change will increase the size of the project’s layout, but the fundamental elements will remain unchanged.
2. Canadian Spirit Resources (TSXV:SPI)
Weekly gain: 40 percent; market cap: C$15.30 million; current share price: C$0.07
Canadian Spirit Resources is a natural gas exploration and development company focused on assets in the Montney Formation near Fort St. John, BC, Canada. They are located in an area close to sites previously drilled and fracked by Malaysia’s Petronas (KLX:6033).
The company’s Farrel Creek, Altares and Attachie properties consist of two contiguous land blocks with a gross 17 trillion cubic feet of total petroleum initially in place. Canadian Spirit has drilled five vertical and eight horizontal wells between a combination of wholly owned and joint venture assets.
The company has not released news since November 28, and there is no indication what caused this week’s share price gains.
3. West High Yield Resources (TSXV:WHY)
Weekly gain: 36.17 percent; market cap: C$25.8 million; current share price: C$0.32
West High Yield Resources is an exploration and development company currently working on its Record Ridge project. Located 10 kilometers southwest of Rossland, BC, Canada, the site covers 29 mineral claims over 8,972 hectares and hosts measured and indicated amounts of 10.6 million metric tons of magnesium.
West High Yield shares saw gains this past Monday (January 15) following the release of an update on the company’s permit application for Record Ridge. In the announcement, the company said it met with a mine development review committee (MDRC) in December, and provided the committee with answers regarding its permit application for Record Ridge, as well as a corresponding socioeconomic report. The MDRC chair asked the committee to provide technical comments to West High Yield by January 15, 2024, and the company said in this week’s release that it will address them in advance of its next meeting with the MDRC on February 14.
4. Aston Bay Holdings (TSXV:BAY)
Weekly gain: 37.5 percent; market cap: C$19.63 million; current share price: C$0.11
Aston Bay Holdings is an exploration company with assets in the US and Canada. Its flagship property is the Storm copper project on Somerset Island, Nunavut. Storm is currently being developed by American West Metals (ASX:AW1,OTC Pink:AWMLF) through a May 2021 earn-in agreement that would give American West an 80 percent interest in Aston Bay’s property in Nunavut, which includes Storm as well as the Seal zinc project.
Shares in Aston Bay are up this past week, but the company has not released news since November 2023.
5. MCF Energy (TSXV:MCF)
Weekly gain: 30.56 percent; market cap: C$41.24 million; current share price: C$0.235
MCF Energy is a natural gas exploration company with permits to explore large-scale sites in Northern and Southern Germany, as well as the Welchau-1 natural gas project in Austria.
Shares in MCF have seen strong gains in recent weeks following an announcement on January 9, that it has increased its stake in the Welchau-1 project in Austria from 20 percent to 25 percent, with ADX Energy (ASX:ADX) holding the remaining 75 percent interest. Each company has committed to funding expenses related to the Welchau area.
Construction on the gas well began on December 15 after being granted environmental clearance from the Austrian government. Drilling is slated to begin in late January.
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 10:00 a.m. PST on January 19, 2023, 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.