5 Best Weekly Performers on TSXV: 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 major Canadian indexes were trending higher after the U.S. Federal Reserve announced plans to raise interest rates by 25 basis points for the first time since 2018.
While the Fed’s hawkish tone could have a stronger impact in the coming weeks, North American markets weathered the news well, with the TSX hitting an all-time high of 21,796.62 on Thursday (March 17).
“In theory, all things being equal, higher interest rates make equity investments less attractive because they reduce the present value of corporate cash flows, and higher rates lead to higher borrowing costs. that are eating away at corporate earnings,” said Benedek Vörös, director of the index. investment strategy at S&P Dow Jones Indices, said Thursday.
In a report, he pointed to the lackluster start to the year for the S&P 500 (INDEXSP:.INX) — its worst performance since 2009 — as evidence that even perceived monetary tightening can trigger a decline in U.S. stocks. “But history cautions against assuming that a rate hike would necessarily imply the end of the bull run,” Vörös added.
Oil, which continues to sell above US$100 a barrel, buoyed the TSXV last week as several junior resource companies rose in stock value last week. The five TSXV-listed mining stocks that posted the biggest gains are:
- 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 these companies and the factors that drove their stock prices over the past week.
1. Explore the Guardians
Described as an oil and gas and mining 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 through the issuance of 1 million shares of Guardian common stock, a cash payment of US$35,000 and a 1.5% net smelter royalty.
Guardian published no news in the weeks that followed; however, shares of the diversified junior rose 100.44% last week, closing the period at C$0.13.
2. NuLegacy Gold
Focused on the discovery of gold in Nevada, NuLegacy Gold’s Red Hill project hosts the “very promising” Anticline Rift drill target. The property is also adjacent to three of Barrick Gold’s (TSX:ABX,NYSE:GOLD) gold deposits.
Last Tuesday, NuLegacy granted incentive stock options to the company’s directors, officers, employees and consultants. The options allow the purchase of 9,420,000 common shares at a price of C$0.05 each; they can be exercised before March 14, 2027.
Shares of NuLegacy had climbed 57.43% on Friday to end the five-day session at C$0.05.
3. Explore Leucrotta
Focusing on the Montney Formation in Canada, oil and gas explorer and developer Leucrotta Exploration owns a property located in the Mica region of northeast British Columbia. In total, the company owns 240 sections of the Montney area.
The energy company released two updates last week, a 2021 reserves report and an update on ongoing operations and drilling.
“Leucrotta estimates first quarter 2022 and current production at 4,250 barrels of oil equivalent per day (boepd),” the most recent statement read. “Production for the remainder of the year is expected to remain relatively flat until the new Alberta Pad is brought into production, at which point approximately 4,000 boepd will be added.”
Leucrotta saw its stock price rise 33.5% last week to trade at 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 company released core assay results that show several “high-grade” silver intersections.
President Scott Jobin-Bevans said, “We are very pleased with the results to date which have demonstrated the potential for several large vein systems containing high-grade silver and significant gold grades.
Shares of precious metals-focused Stroud gained 29.41% last week, closing at C$0.46.
5. Empire Metals
Diversified exploration and development company Empire Metals owns a 100% interest in the Buck Lake platinum-palladium-nickel-gold project in Ontario, Canada. Empire also owns a majority interest in the Fox Creek lithium project in Alberta, as well as several other exploration properties.
Although no updates have been released since last February, Empire shares were up 28.76% on Friday, closing the five-day trading period at C$0.22.
Data for the top 5 performers of the week on the TSXV is retrieved each Friday at 10:30 am EST using TradingView’s Stock Analyzer. Only companies with a market capitalization above C$10 million before earnings for the week are included. Companies in the non-energy minerals and energy minerals sectors are considered.
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Securities Disclosure: I, Georgia Williams, have no direct investment interests in any of the companies mentioned in this article.
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