Economy 29-04-2024 13:01 3 Views

5 Top Weekly TSXV Stocks: Sintana Energy Jumps 72 Percent on Namibia Deal

The S&P/TSX Venture Composite Index (INDEXTSI:JX) rose 31.43 points last week to close at 586.55.

The US Bureau of Economic Analysis (BEA) released its advance estimate for first quarter GDP growth this past Thursday (April 25). Though still incomplete, the data shows a slowing growth rate for real GDP — it increased 1.6 percent on a year-on-year basis, considerably lower than the fourth quarter of 2023, which saw growth of 3.4 percent.

While analysts had expected slowing growth, the numbers were below analysts’ forecasts.

The GDP report came alongside a release from the BEA this past Friday (April 26). It shows an increase in the personal consumption expenditures (PCE) price index, a key inflation indicator for the US Federal Reserve. Stripped of food and fuel, the PCE saw an annualized increase of 2.8 percent, 0.3 percent higher than February.

The increase in PCE might spell bad news for those hoping the Fed will cut rates sooner than later. The Federal Open Market Committee’s next meeting is scheduled for April 30 to May 1 and will determine the central bank’s next steps.

Also last week, global mining giant BHP (ASX:BHP,NYSE:BHP,LSE:BHP) made waves with an unsolicited and non-binding takeover bid for Anglo American (LSE:AAL,OTCQX:AAUKF) on Thursday. The all-share US$39 billion offer comes as BHP looks to capitalize on rising demand for copper due to the global push for a transition to renewable energy.

Anglo American has rejected the offer, calling the bid “opportunistic.’ However, analysts expect BHP to increase the offer to make it more attractive ahead of the May 22 regulatory deadline to formalize a binding offer.

Against this backdrop, how have small-cap mining companies performed on the TSX Venture Exchange this past week? Below are the top five gainers. Read on to learn what’s been moving their share prices.

1. Sintana Energy (TSXV:SEI)

Company Profile

Weekly gain: 72.41 percent; market cap: C$394.55 million; current share price: C$1

Sintana Energy is a petroleum and natural gas explorer and developer with assets in Africa and Latin America.

The company saw a steep share price rise after announcing an exploration update from petroleum exploration license (PEL) 83 in Namibia’s Orange Basin this past Sunday (April 21). Sintana has exposure to PEL 83 through its indirect 49 percent interest in Custos Energy, a 10 percent working interest owner of the license.

Sunday’s news was that Galp Energia (OTC Pink:GLPEF,ELI:GALP), the license operator and its primary stakeholder, has completed testing on the Mopane-1x well. In a release, Galp said in-place hydrocarbon estimates from the Mopane complex stand at approximately 10 billion barrels of oil equivalent or higher.

Sintana saw further gains on Wednesday (April 24), when it entered into a definitive agreement with Namibia’s Crown Energy to acquire up to 67 percent of the issued and outstanding shares of Giraffe Energy, which owns a 33 percent interest in PEL 79. The company said it will allow Sintana to expand its exposure to the Orange Basin.

2. Adyton Resources (TSXV:ADY)

Company Profile

Weekly gain: 72.22 percent; market cap: C$18.62 million; current share price: C$0.155

Adyton Resources is working to advance its flagship Feni Island gold project in Papua New Guinea.

The site has seen historic exploration, with 212 holes drilled over 18,813 meters. While limited work has been conducted by Adyton, a 2021 resource estimate reported an inferred quantity of 1.46 million ounces of gold on site. The company has been working to expand its gold resource and explore for copper at greater depths than previous exploration.

Shares of Adyton saw gains last week following Thursday’s news that it has closed on C$1.5 million in financing and restarted exploration at Feni Island. The company said the initial focus will be to reprocess and reinterpret historical data with modern geophysical algorithms in order to provide optimized locations for detailed follow-up programs.

3. Barksdale Resources (TSXV:BRO)

Press ReleasesCompany Profile

Weekly gain: 70.37 percent; market cap: C$21.07 million; current share price: C$0.23

Barksdale Resources is a copper exploration company focused on advancing its assets in Arizona, US.

The company’s flagship Sunnyside project has been in focus in 2024. The site is located in the Patagonia Mountains of Southern Arizona and covers approximately 21 square kilometers. Sunnyside is located adjacent to South32’s (ASX:S32,OTC Pink:SHTLF) Hermosa project, which received final development approval on February 15.

Exploration at Sunnyside began in September 2023, but was halted after 4,250 meters were drilled due to performance issues with the company’s drill contractor. Barksdale announced on February 23 that it was seeking to partner with a new drilling group that will be able to execute its envisioned directional drilling program.

The final assays from Sunnyside’s from SUN-003 drill hole were released on March 19, with the company reporting a highlighted intersection of 0.46 percent copper, 11.9 percent zinc, 3.8 percent lead, 377 grams per metric ton silver (g/t) and 0.028 g/t gold over 1.01 meters and from 1,550.67 meters in depth.

Shares of Barksdale rose just over 70 percent this past week, but it has not released any news.

4. South Pacific Metals (TSXV:SPMC)

Company Profile

Weekly gain: 52.94 percent; market cap: C$12.09 million; current share price: C$0.52

Formerly Kainantu Resources, the company announced on February 6 that it would be changing its name to South Pacific Metals. It is a gold exploration company primarily focused on the advancement of its SPMC South project.

SPMC South is an early stage project located in a region of Papua New Guinea that is known for gold panning. The most recent exploration results from the project came in March 2023, when the company said 63 samples from the site had returned up to 1.55 g/t gold, 20.8 g/t silver, 0.39 percent copper and 460 parts per million molybdenum.

The company also owns three other gold projects in Papua New Guinea: SPMC North, May River and Kili Teke.

The most recent news from South Pacific Metals came on April 18, when it announced it had closed on C$1.5 million in private placement financing. The company said it would use C$500,000 for exploration work on its properties in Papua New Guinea, with the remainder for general administrative and working capital purposes.

5. LNG Energy Group (TSXV:LNGE)

Company Profile

Weekly gain: 46.81 percent; market cap: C$22.01 million; current share price: C$0.345

LNG Energy is an oil and gas development and exploration company focused on operations in Latin America.

Its primary producing asset is the Sinu-San Jacinto 1 well in Northern Colombia. The site produces 36 million cubic feet per day and hosts 139 billion cubic feet equivalent of proven, probable and possible liquid natural gas reserves.

Shares of LNG Energy saw gains following an announcement this past Wednesday that it had signed a binding agreement with Venezuela’s national oil company, Petroleos de Venezuela, for the operation of the Nipa-Nardo-Niebla and Budare-Elotes hydrocarbon productive participation contracts.

The contracts will cover the operation of five onshore fields that currently produce 3,000 barrels of oil per day and will provide LNG Energy with 50 to 56 percent of the hydrocarbons produced.

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 26, 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.

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