After some fluctuating up and down, Canada's main stock market, the Toronto Stock Exchange, is back near where it started, down around 50 points with most sectors lower.
Metals & Mining stocks are especially hard hit today, falling 2% as a group. Among the losers, Golden Minerals (AUM.TO, AUMN) is down 12% and has hit new 52 week lows after the miner late Friday said its FY12 net loss widened to $92 million from $63 million during the prior year. The FY12 loss includes a $58.5 mln non-cash charge associated with goodwill impairment plus another $10 mln in depreciation and amortization costs and $7.9 mln for project expenses at its Velardena operations.
Also, IAMGold (IMG.TO, IAG) is down about 4% and has also hit new 52 week lows after announcing plans to reduce its spending by $100 mln per year. The plan includes several cost-cutting initiatives aimed at reducing mine operating costs and exploration expenditures as well as trimming corporate and administrative costs.
But on the plus side, Aurizon Mines (ARZ.TO, AZK) is up 4% after receiving a $796 mln buyout offer from Hecla Mining ( HL ). AZK shareholders have the choice of receiving either C$4.75 per share in cash or C$3.11 per share in cash plus 0.34462 of a HL share.
AZK previously rejected a $780 mln takeover bid from Alamos Gold (AGI.TO, AGI), another Canadian mining company in January. HL shares are down nearly 13% and nearer to year lows this afternoon.
Much of the decline for tech issues today is the result of a 20% tumble by DragonWave, Inc. (DWI.TO, DRWI) after the networking equipment company trimmed its Q4 revenue forecast, now expecting just $30 mln in quarterly sales after Nokia ( NOK ) cut back on its purchases during the three months ended Feb. 28. Analysts, on average, are expecting about $42.29 mln in revenue.
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