Canadian Stocks Back into the Green as Gold Reclaims Upward Momentum


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Canadian stocks have again turned positive over the past hour with mining stocks starting to pare steep losses of earlier today as bullion prices turn positive. Financial stocks, which account for roughly a third of the value in the S&P/TSX Composite Index, are higher today as traders shake off credit downgrades of 15 global banks and brokerages -- including Royal Bank of Canada ( RY ) -- by Moody's Investor Service last night.

Here's where the primary Canadian market guages stand today:

- S&P/TSX Composite Index 12.81 +0.11% 11,421.13

- S&P/TSX Venture Composite Index -15.82 -1.30% 1,201.53

In company news, Jaguar Mining Inc (JAG, JAG.TO) last night named John Andrews as interim CEO during its search for a permanent chief executive. Andrews is a JAG board member with over 40 years of industry experience, including a stint as president and chief operating officer of Stillwater Mining Company (SWC,SWC-U.TO).

JAG also is again responding to what it describes as "inaccurate and misleading statements" by Bristol Investment Partners in a June 13 letter accompanying securities ownership documents filed with U.S. regulators. In particular, Bristol contends the JAG board and management mishandled a $9.30 a share buyout offer last November by Shandong Gold Group as well as a subsequent strategic review by the company.

JAG shares peaked just above $8 each soon after the Shandong bid became public but deflated over the next six months, including a 35% one-day decline last month after Shandong was reported to be no longer interested in a deal. Since that time, Bristol has stepped up its complaints about JAG management, including accusations board members who led the strategic review received over $750,000 in fees and other payments during the six-month process.

Instead, fees paid or payable totalled $203,187.50, according to the company, citing a review of expenses by JAG's audit committee chairman and its outside accountants. It said the exaggerated cost estimates by Bristol were "reckless and misleading" and the firm is now demanding Bristol publicly retract the claim.

U.S.-listed JAG shares are down more than 2% at $1.22 each, near a year low of $1.16.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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