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Thursday, December 7, 2023

5 Top Weekly TSXV Performers: Oil Stocks Post Another Positive Week

The S&P/TSX Venture Composite Index (INDEXTSI:JX) was on course to end last week in the green after slipping to a 12 month low of 809.37 points on Tuesday (March 15).

Both of Canada’s main indexes were trending higher following the US Federal Reserve’s announcement that it plans to raise interest rates by 25 basis points for the first time since 2018.

While the hawkish tone from the Fed may have a stronger impact in the weeks ahead, North American markets weathered the news well, with the TSX soaring to an all-time high of 21,796.62 on Thursday (March 17).

“In theory, all else being equal, higher interest rates make equity investments less appealing, as they reduce the present value of corporate cash flows, and higher rates result in higher borrowing costs that eat into corporate earnings,” Benedek Vörös, director of index investment strategy at S&P Dow Jones Indices, said on Thursday .

In a report, he pointed to the S&P 500’s (INDEXSP:.INX) lackluster start to the year — its worst performance since 2009 — as evidence that even perceived monetary tightening can trigger declines in US equities. “But history offers caution against assuming a rate hike would necessarily imply the end of the bull run,” Vörös added.

Oil, which continues to sell for more than US$100 per barrel, supported the TSXV last week, with several junior resource companies adding to their share value last week. The five TSXV-listed mining stocks that saw the biggest gains are as follows:

  • Guardian Exploration (TSXV:GX)
  • NuLegacy Gold (TSXV:NUG)
  • Leucrotta Exploration (TSXV:LXE)
  • Stroud Resources (TSXV:SDR)
  • Empire Metals (TSXV:EP)

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

​1. Guardian Exploration

Described as an oil and gas and mineral exploration company, Guardian Exploration made headlines last month when it completed the acquisition of mining claims in Alaska.

Located on Dall Island, the Kaigani claims were purchased with the issuance of 1 million common shares of Guardian, a cash payment of US$35,000 and a 1.5 percent net smelter royalty.

Guardian has not released any news in the weeks since; however, shares of the diversified junior were up 100.44 percent last week, closing the period at C$0.13.

2. NuLegacy Gold

Focused on gold discovery in Nevada, NuLegacy Gold’s Red Hill project is home to the “highly prospective” Rift Anticline drill target. The property is also next to three of Barrick Gold’s (TSX:ABX,NYSE:GOLD) gold deposits.

Last Tuesday, NuLegacy granted incentive stock options to company directors, officers, employees and consultants. The options allow for the purchase of 9,420,000 common shares priced at C$0.05 each; they are exercisable before March 14, 2027.

Shares of NuLegacy had climbed 57.43 percent by Friday to end the five day session at C$0.05.

3. Leucrotta Exploration

With a focus on Canada’s Montney formation, oil and gas explorer and developer Leucrotta Exploration holds a property located in Northeast BC’s Mica region. In total, the company owns 240 sections of Montney acreage.

The energy firm released two updates last week, a 2021 reserve report and a current operations and drill update.

“Leucrotta estimates Q1 2022 and current production at 4,250 barrels of oil equivalent per day (boepd),” the most recent release reads. “Production for the remainder of the year is projected to remain relatively flat until the new Alberta Pad is placed on production at which point approximately 4,000 boepd will be added.”

Leucrotta saw its share price rise 33.5 percent last week to trade for C$1.28.

​4. Stroud Resources

Stroud Resources is exploring and developing its Santo Domingo epithermal silver project in Central Mexico. In early February, the firm released core assay results that show multiple “high-grade” silver intersections.

President Scott Jobin-Bevans commented: “We are very pleased with the results to date which have demonstrated the potential for several wide vein systems hosting high-grade silver and important gold grades.”

Shares of precious metals-centric Stroud made a 29.41 percent gain last week, closing at C$0.46.

​5. Empire Metals

Diversified exploration and development company Empire Metals holds a 100 percent interest in the Buck Lake platinum-palladium-nickel-gold project in Ontario, Canada. Empire also has a controlling interest in the Fox Creek lithium project in Alberta, as well as several other exploration properties.

Despite not releasing any updates since last February, shares of Empire had added 28.76 percent by Friday, ending the five-day trading period at C$0.22.

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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