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Thursday, September 21, 2023

5 Top Weekly TSXV Performers: Morien Resources Leads Energy Stocks Higher

The S&P/TSX Venture Composite Index (INDEXTSI:JX) started the month trending higher following February’s losses, which saw the junior index dip to 826.27, a 14 month low.

Bolstered by energy stocks and precious metals, the exchange moved as high as 859.53 last Wednesday (March 2) before pulling back to 845.6 on Friday (March 4) morning.

West Texas crude oil hit another eight year high when values edged north of US$112 per barrel, while the gold price continued to surge higher amid the ongoing military conflict in Ukraine. The yellow metal has added 3.82 percent to its value since February 24, to trade for US$1,959.21 per ounce on Friday morning.

“We continue to see gold in demand as a safe-haven asset, given we are still in the early days of the Russia-Ukraine conflict, which has considerable potential for a worsening risk outcome,” a Sprott report for February states.

The overview also warns that the mounting risk of stagflation is another factor that could also drive gold’s safe-haven demand in the near term.

Against that widespread volatility, several energy and gold explorers were able to add to their share value last week; the five TSXV-listed mining stocks that saw the biggest gains are as follows:

  • Morien Resources (TSXV:MOX)
  • Virginia Energy (TSXV:VUI)
  • St. James Gold (TSXV:LORD)
  • Orca Gold (TSXV:ORG)
  • Razor Energy (TSXV:RZE)

Here’s a look at those companies and the factors that moved their share prices last week.

​1. Morien Resources

Developer Morien Resources has royalty interests in two projects: the Donkin coal mine and the Black Point aggregate project, both in Nova Scotia, Canada.

In late January, the company announced plans to purchase outstanding common shares on the open market through the renewal of its normal course issuer bid. The proposal, which was accepted by the TSXV, allowed Morien to acquire up to 3,763,300 common shares, roughly 10 percent of its public float as of January 21, 2022.

Shares of Morien were up 82 percent last week, ending the first trading week of March at C$0.42.

​2. Virginia Energy Resources

Exploration and development company Virginia Energy Resources has a 100 percent controlling interest in the Coles Hill uranium project located in South-Central Virginia.

The explorer did not release any company updates last week. However, according to UxC, a nuclear fuel data services agency, the spot price for U3O8 rose by US$5.50 over the five day period, reaching US$48.50 per pound.

Virginia Energy saw its shares climb 68.08 percent by Friday, ending the week at C$0.75.

​3. St. James Gold

Precious metals explorer St. James Gold has an option to acquire a 100 percent stake in 29 claims covering 1,791 acres in Newfoundland’s Gander gold district. The company also has an option to solely acquire 28 claims across 1,730 acres in Central Newfoundland.

On Friday, the gold firm completed a C$500,000 private placement. CEO George Drazenovic commented:

“The closing of our private placement at a premium to market during a time of market turbulence is a strong signal that investors are confident in the prospects of the company’s future. With fewer than 23,000,000 shares issued and outstanding, we continue to maintain a tight share structure that will allow us to fund our future work exploration programs with minimal dilution.”

Shares of St. James Gold added 59.31 percent last week to close at C$1.10.

​4. Orca Gold

Orca Gold is focused on exploration and development opportunities in Africa.

On Monday, Orca entered a definitive agreement to be acquired by dual-listed Perseus Mining (TSX:PRU,ASX:PRU). Australia-based Perseus has also honed in its efforts on Africa with three operating gold mines, one in Ghana and two in Côte d’Ivoire. The deal will see Perseus pay C$215 million for 100 percent of Orca; prior to the acquisition, Perseus owned a 15 percent stake in Orca.

“When the transaction is completed, Perseus will have three operating mines currently producing gold at a rate of approximately 500,000 ounces per year and a high-quality development project that if brought on stream, as intended, should ensure that Perseus can maintain or exceed its targeted production level well into the next decade,” Jeff Quartermaine, Perseus’s managing director and CEO, said in a press release.

By Friday, shares of Orca were 56.54 percent higher, trading for C$0.86.

​5. Razor Energy

Calgary-headquartered Razor Energy acquires and enhances producing oil and gas properties, mainly in Alberta.

Last week, Razor released its 2021 results and operational outlook for 2022. Highlights include “significant year-over-year reserves volume and value growth.” The firm partially attributes the growth to additions to its working interest in Swan Hills Unit No. 1, a non-operated position; this boosted Razor’s Swan Hills area holdings.

“Other primary factors which positively affected reserve volume and values included the reinvigoration of operated and non-operated well and pipeline reactivations and improving West Texas Intermediate oil price throughout 2021,” the company’s statement reads.

Razor Energy saw its shares move 55.09 percent higher over the five day period, ending the session at C$2.

Data for 5 Top Weekly TSXV Performers articles is retrieved each Friday at 10:30 a.m. EST 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 are considered.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

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