The S&P/TSX Venture Composite Index (INDEXTSI:JX) gained 11.08 points last week to close at 563.39.
The US Bureau of Economic Analysis released gross domestic product (GDP) data for Q4 2023 this past Thursday (March 28). The report indicates that the US economy remains strong, growing at 3.4 percent during the period.
The rise was driven by increased consumer and government spending, exports and fixed investments. While down from the third quarter’s 4.9 percent growth, it was nearly double the growth rate of the first two quarters of 2023.
North of the border, Statistics Canada released January GDP numbers by industry this past Thursday. The figures show that the mining, quarrying and oil and gas sectors saw a slight contraction of 1.9 percent that month. The biggest decline came from the oil and gas sector, which saw a 4.4 percent drop, while mining and quarrying sank by 0.7 percent, largely due to mining reclamation in Nova Scotia and Alberta and a shift from coal to natural gas for electrical generation.
Meanwhile, investors remained fixed on gold ahead of the long weekend. The yellow metal closed Thursday at just over US$2,230 per ounce, hitting a fresh price record. And in Chile, the government announced it will open 26 lithium salt flats to private companies. The move is part of President Gabriel Boric’s 2023 lithium policy. Details of how contracts will be awarded remain murky and have raised concerns from investors and mining executives.
Against that backdrop, which TSXV-listed mining and energy stocks rose the most? Here’s a look at the five top gainers.
1. Awalé Resources (TSXV:ARIC)
Weekly gain: 100 percent; market cap: C$46.65 million; current share price: C$0.80
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.
On March 18, Awalé 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.
The company made a follow-up announcement this past Monday (March 25), saying that exploration of a new breccia pipe at the Charger target resulted in grades of 45.7 g/t gold over 32 meters.
2. Orosur Mining (TSXV:OMI)
Weekly gain: 55.56 percent; market cap: C$11.92 million; current share price: C$0.07
Orosur Mining is an exploration company focused on early to advanced-stage assets in South America.
Its flagship Anza gold project in Colombia is a joint venture with Minera Monte Aguila (MMA), a corporation owned equally by Newmont and Agnico Eagle Mines (TSX:AEM,NYSE:AEM). The site is located 50 kilometers west of Medellin and sits along Colombia’s primary gold belt; exploration has revealed multiple gold deposits.
In addition to Anza, Orosur owns smaller early stage projects, including the El Pantano gold-silver project in Argentina, the Ariquemes tin project in Brazil and the Lithium West project in Nigeria.
Shares of Orosur saw gains this week following news on Monday that the company has entered into an agreement to repurchase MMA’s interest in the Anza project. Under the deal, 100 percent ownership of the property will be returned to Orosur in exchange for a net smelter return royalty of 1.5 percent and cash payments of up to US$15 million, which will be payable once certain agreed-upon production thresholds are met.
3. Power Metals (TSXV:PWM)
Weekly gain: 51.85 percent; market cap: C$60.38 million; current share price: C$0.41
Power Metals is a lithium and cesium exploration company focused on its Case Lake project.
Located in Northeastern Ontario, the site is 10 kilometers by 9.5 kilometers in size and is comprised of 585 cell claims. Exploration at the site between 2017 and 2023 led to the discovery of lithium-, cesium- and tantalum-bearing dikes, and Case Lake now consists of six spodumene dikes that form a mineralization trend of about 10 kilometers. Assays from the main dike have resulted in highlighted samples of 2.07 percent lithium oxide with 214 parts per million (ppm) tantalum over 18 meters, with an intersect of 2.81 percent lithium oxide and 143 ppm tantalum over 7 meters.
The company’s most recent news came on March 19, when it announced the acquisition of a new property it has called the Pelletier project, located 50 kilometers south of Hearst in Northeast Ontario. The site consists of 337 mineral claims accounting for a surface area of 7,000 hectares; it hosts lithium, cesium and tantalum deposits.
In the announcement, the company also noted that exploration activities are continuing at Case Lake, with 615 meters of a planned 4,000 meter program completed.
4. Big Ridge Gold (TSXV:BRAU)
Weekly gain: 43.75 percent; market cap: C$15.06 million; current share price: C$0.115
Big Ridge Gold is a gold explorer with projects in Newfoundland and Labrador, Manitoba and Quebec.
The company’s current focus is its Hope Brook gold project on Newfoundland’s southwest coast. It consists of 1,042 mineral claims covering an area of 26,050 hectares. A February 2023 resource estimate shows an indicated amount of 1.21 million ounces grading 2.32 g/t gold and an inferred amount of 231,000 ounces grading 3.4 g/t gold. The company also reported an inferred estimate of 47 million pounds of copper from in-pit and below-pit sources.
In an announcement this past Thursday (March 28), the company reported that it has increased its ownership of the Hope Brook project from 51 percent to 80 percent by issuing 10 million common shares to First Mining Gold (TSX:FF,OTCQX:FFMGF). First Mining will retain a 20 percent ownership stake until Big Ridge completes a feasibility study.
5. Omai Gold Mines (TSXV:OMG)
Weekly gain: 33.33 percent; market cap: C$52.19 million; current share price: C$0.16
Omai Gold Mines is a gold exploration company focused on the development of its namesake gold project in Guyana.
The project consists of a 4,590 acre prospecting license and two mining permits for medium-scale operations covering over 1,519 acres. The site hosts two primary gold deposits, Wenot and Gilt Creek.
The most recent announcement from the company was the release of an updated mineral resource estimate on February 8. For Wenot, Omai reported an indicated total of 834,000 ounces grading 1.48 g/t gold and an inferred amount of 1.61 million ounces grading 1.99 g/t gold; for Gilt Creek, the indicated category stands at 1.15 million ounces grading 3.22 g/t gold, while the inferred amount is 665,000 ounces grading 3.35 g/t gold.
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.
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.