The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 20.69 points last week to close at 567.02.
Statistics Canada released March consumer price index figures this past Tuesday (April 16), showing inflation was up 2.9 percent on a year-on-year basis, higher than the 2.8 percent year-on-year growth reported in February.
Gasoline prices, which were up 4.5 percent compared to the same period last year, were a significant factor in the gain. Additional pressure came from rising shelter costs due to mortgage and rental increases.
Core inflation less gas prices saw a slight decline from February’s numbers, dropping to 2.8 percent from 2.9 percent. This fueled expectations that the Bank of Canada could announce a cut to interest rates when it meets next in June.
Also on Tuesday, the Canadian government released its 2024 budget, which includes support for housing and new Pharmacare programs. Deputy Prime Minister and Minister of Finance Chrystia Freeland also announced proposed changes to the country’s capital gains tax. They would see approximately 0.13 percent of Canadians and 12 percent of Canadian businesses pay taxes on a larger portion of their capital gains once the changes come into effect on June 24.
In a press release shared on Tuesday, the Mining Association of Canada discussed the budget items that will impact the nation’s mining sector, including an extension to the clean technology manufacturing investment tax credit, and a new target of five years or less to complete federal impact assessments and permits. The association also noted that changes to the capital gains rules could have a negative impact on exploration financing.
Against that backdrop, which TSXV-listed mining stocks performed the best last week? Here are the top five gainers.
1. Timberline Resources (TSXV:TBR)
Weekly gain: 123.08 percent; market cap: C$26.06 million; current share price: C$0.145
Timberline Resources is a gold exploration company with a portfolio of projects in Central Nevada, US.
The company’s flagship Eureka property features several targets that have hosted historic gold production, including the Lookout Mountain gold-silver deposit. An updated resource estimate released in November 2023 shows that Lookout Mountain has a measured and indicated resource of 423,000 ounces of gold from 25.82 million metric tons (MT) of ore at an average grade of 0.017 ounces per MT. Timberline also holds the Seven Troughs property and the Paiute property, the latter of which is a 75/25 joint venture with Barrick Gold (TSX:ABX,NYSE:GOLD) subsidiary Nevada Gold Mines.
Shares of Timberline saw significant gains this past Tuesday, when the company entered into a definitive agreement and plan of merger with McEwen Mining (TSX:MUX,NYSE:MUX), which is led by mining industry figure Rob McEwn. Under the deal, Timberline will merge with a McEwen subsidiary and continue to exist as a subsidiary of McEwen. Timberline shareholders receive 0.01 of a share of McEwen’s common stock for each share they own of Timberline.
2. Power Nickel (TSXV:PNPN)
Weekly gain: 50 percent; market cap: C$44.15 million; current share price: C$0.375
Power Nickel is a nickel exploration company that is currently focused on the development of its Nisk nickel-copper project in the Eeyou Istchee James Bay region of Québec, Canada.
The project is comprised of 90 mineral claims covering an area of 4,589 hectares, and has seen significant exploration from 2021 to 2024. Power Nickel released an initial resource estimate for Nisk in November 2023, and it outlines an indicated resource of 5.43 million MT at a weighted average grade of 1.05 percent nickel equivalent. The inferred resource stands at 1.79 million MT grading 1.35 percent nickel equivalent. The company used a nickel equivalent cut-off grade of 0.2 percent for inside the open pit and 0.55 percent for the underground portion of the deposit.
Shares of Power Nickel rose this past Monday (April 15) when the firm announced significant initial assay results from its Lion copper-platinum-palladium target, located 5 kilometers north of the main deposit at Nisk.
The company highlighted results including a 0.6 meter interval grading 24.3 grams per MT (g/t) gold, 5.7 g/t silver, 5.29 percent copper, 3.26 g/t palladium, 0.29 g/t platinum and 3.31 percent nickel.
3. ArcWest Exploration (TSXV:AWX)
Weekly gain: 47.37 percent; market cap: C$11.2 million; current share price: C$0.14
ArcWest Exploration is an exploration company that has most recently been working to advance its Todd Creek property within the Golden Triangle in BC, Canada. The project is a 32,000 hectare site that adjoins Newmont’s (TSX:NGT,NYSE:NEM) Brucejack mine. The site hosts widespread copper and gold mineralization.
The latest news from the project came on March 4, when ArcWest announced results from a 2023 exploration program that was funded by a C$2.8 million earn-in agreement with Freeport-McMoRan (NYSE:FCX). Highlighted results from the program yielded rock samples with grades up to 262 g/t gold and 2.46 percent copper from the Ice Creek zone, and 1.15 g/t gold, 0.76 percent copper and 80 parts per million molybdenum from the Fall Creek zone.
The company has not released further updates in 2024.
4. Amarc Resources (TSXV:AHR)
Weekly gain: 41.67 percent; market cap: C$31.76 million; current share price: C$0.17
Amarc Resources is a copper and gold exploration company with projects located throughout BC.
Its primary focus has been advancing its district-scale Duke project, a 678 square kilometer land package in Central BC within a region that hosted Noranda’s past-producing Bell and Granisle mines.
Amarc’s share price saw gains following a news release this past Tuesday announcing the discovery of the new Jo porphyry copper and gold target at Duke. Rock chips taken from the company’s 2023 exploration program include grades of 0.18 percent copper, 0.52 g/t gold, 16.05 g/t silver and 55 parts per million molybdenum. The company said it will undertake a reconnaissance drill program during its 2024 summer season.
5. PJX Resources (TSXV:PJX)
Weekly gain: 40 percent; market cap: C$43.22 million; current share price: C$0.28
PJX Resources is a polymetallic exploration company that has most recently been focused on the advancement of its Dewdney Trail property, located northeast of Cranbrook, BC. The 16,000 hectare site hosts three target areas: Estella Basin, Lewis Ridge and Tackle Basin. Through rock sampling and limited drilling at the targets, the company has identified potential mineralized areas that it says are similar to the nearby Sullivan mine.
Its latest exploration results came on January 15, when rock samples returned grades of 5.57 percent zinc, 0.94 percent lead and 4.41 g/t silver from an outcrop at Dewdney Trail. According to PJX, the next steps will be to drill for size and grade potential, which it will begin when the snow melts and its permits are updated.
This past Wednesday (April 17), PJX closed a C$3.6 million private placement. The company said it will use the proceeds for expenditures on its properties located in Cranbrook and for general working capital.
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 April 19, 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.