Shares of miners surge as gold price hits new high

Shares of miners surge as gold price hits new high

Stock Market Predictions

TORONTO (Global Markets) - Shares of North American gold miners were among the biggest gainers on Friday morning, as the price of gold rose to a record of $1,877 an ounce on growing concerns over slowing economic growth and sovereign debt.

The ARCA Gold Bugs Index .HUI, whose components include some of the world's largest producers, rose more than 3 percent on Friday, lifted by gains in the shares of majors like Barrick (ABX.TO), Newmont Mining (NEM.N) and Goldcorp (G.TO).

The price of gold, often viewed by investors as a safe haven during turbulent times, has risen more than 30 percent this year, as investors worry about a double-dip recession and U.S. and European sovereign debt levels.

A surge in the number of gold and silver ETFs -exchange-traded funds that invest in the precious metals - has also helped drive bullion prices higher.

Shares of Barrick were up C$1.09, or 2.2 percent at C$50.39 on the Toronto Stock Exchange, while Newmont and Goldcorp were up 2.8 percent and 2.5 percent, respectively.

Shares of smaller rival Agnico-Eagle (AEM.TO) were among the biggest net gainers on the TSX on Friday morning, up 3.1 percent at C$64.97.

The price of spot silver also rose more than 3 percent to $41.65 an ounce on Friday, sending shares of top silver producers higher.

Pan American Silver (PAA.TO) rose 3.97 percent to C$30.13, while Silver Wheaton (SLW.TO) was up 4 percent at C$38.00 on the Toronto Stock Exchange. Coeur d'Alene (CDE.N) climbed 7 percent to $26.54 on the New York Stock Exchange.

(Reporting by Euan Rocha and Julie Gordon)

Read More

DragonWave cuts revenue view on shipment delays

DragonWave cuts revenue view on shipment delays

Stock Market Predictions

(Global Markets) - Telecom equipment maker DragonWave Inc (DWI.TO) (DRWI.O) cut its first-quarter revenue forecast by 27 percent to $11 million, mainly due to a shipment delay by a North American customer, sending its shares down 8 percent in morning trade.

The company, hit hard as its key customer Clearwire has been struggling to raise cash to complete a high-speed wireless network in the United States, had last month forecast revenue of $15 million.

DragonWave, however, did not name the North American customer in its statement on Friday.

The company, which makes radio transmitters used in cellular networks, said the customer deferred a significant shipment of equipment.

DragonWave said regulatory delays also affected revenue from a customer in the Middle East.

Shares of Ottawa-based DragonWave were down 7 percent at C$5.63 on the Toronto Stock Exchange in morning trade. Its Nasdaq-listed shares were down 8 percent at $5.76.

(Reporting by Amruta Sabnis in Bangalore; Editing by Saumyadeb Chakrabarty and Gopakumar Warrier)

Read More

TMX shares rise after deal with LSE called off

TMX shares rise after deal with LSE called off

Stock Market Predictions

TORONTO (Global Markets) - TMX Group (X.TO) shares turned higher on Wednesday after the London and Toronto stock exchanges canceled plans to combine forces when it became clear they did not have enough shareholder support.

Shares of TMX, operator of the Toronto Stock Exchange, climbed as high as C$44.14 after the news, adding to gains before the confirmation was published. A media report had said the London Stock Exchange (LSE.L) had lost the battle for TMX Group in a proxy vote.

(Reporting by Ka Yan Ng; editing by Rob Wilson)

Read More

Mongolia, Ivanhoe, Rio agree on mine; shares rise

Mongolia, Ivanhoe, Rio agree on mine; shares rise

Stock Market Predictions

LONDON/TORONTO (Global Markets) - The Mongolian government, Ivanhoe Mines (IVN.TO) and partner Rio Tinto (RIO.L) have agreed to back a 2009 investment agreement for the Oyu Tolgoi copper-gold deposit, ending discussions over possible changes and sending shares of Ivanhoe up as much as 18 percent.

The news calmed investors, who had sold off the stock last month after Mongolia's finance minister told local media that the government was discussing changes to the terms and conditions of the agreement.

The 2009 deal gave a 66 percent stake in the massive Oyu Tolgoi project in Mongolia's South Gobi region to Canadian miner Ivanhoe, in which mining giant Rio Tinto (RIO.AX) now owns a 48.5 percent stake.

The Mongolian government holds the remaining 34 percent stake and can increase its stake to 50 percent after 30 years.

Some politicians had hoped Mongolia could increase its stake in the project faster than outlined in the existing agreement, but investors warned that populist policies could slow the country's mining boom.

Wednesday's joint statement said that "all parties have reaffirmed their continued support for the investment agreement and its implementation." It sent Ivanhoe's shares up as high as C$18.81 on the Toronto Stock Exchange. The stock was 11.52 percent higher at C$17.33 in the afternoon.

Rio Tinto's UK-listed shares closed up 7.6 percent.

The statement said the shareholders were "united in their commitment to secure the necessary project finance and bring the Oyu Tolgoi project to completion and full production."

Dahlman Rose mining analyst Adam Graf said the news was positive for the development of Oyu Tolgoi and for future mining projects in Mongolia.

"It shows that the contracts have held and that Mongolia honors contracts," he said, noting that the government's move may have been based more on politics than a real desire to change the pact.

Ivanhoe and Rio Tinto have already sunk billions of dollars into Oyu Tolgoi, which is expected to begin initial production in 2012.

They expect average annual output during its first 10 years of commercial production to exceed 650,000 ounces of gold, 3 million ounces of silver and 1.2 billion pounds (544,000 tonnes) of copper.

(Reporting by Clara Ferreira-Marques in London and Julie Gordon in Toronto; editing by Janet Guttsman)

Read More