After battling inflation and geopolitical headwinds for much of February and March, the S&P/TSX Venture Composite Index (INDEXTSI:JX) spent the official first week of spring on the rise.
Starting the five-day period at the 860 point level, Canada’s Junior Index climbed to 888 points after the morning bell last Friday (March 25). the Resource The sector continued to drive market growth, with a number of potash and phosphate companies posting stock price gains for the week.
Price for muriate of potash, a key ingredient in fertilizers used in crop development, have climbed 77.26% since December. The conflict in Ukraine has had an impact on supplies to Russia and Belarus, the second and third potash producersand it made it even worse supply and demand industry challenges.
“Fertilizer prices have reached an all-time high due to the war in Ukraine and its impact on trade flows. Russia is a key exporter of nitrogen, phosphate and potassium fertilizers,” Chris Lawson, head of fertilizers at business intelligence firm CRU Group, said in an email Monday, March 21.
“Besides, gas is a key input for the production of fertilizers. High gas prices have led to reduced production in regions such as Europe, further restricting an already tight market,” he added.
Lawson went on to note that the sanctions in Belarus “have huge implications for the potash market.” Together, Russia and Belarus represent 40% of the volumes traded each year.
Against this backdrop, the five TSXV-listed mining stocks that posted the largest gains over the past week are:
- Encanto Potash (TSXV:EPO.H)
- Desert Mountain Energy (TSXV:EMR)
- Tower Resources (TSXV:TWR)
- Aton Resources (TSXV:NAA)
- Great Quest Fertilizer (TSXV:QG)
Here’s a look at these companies and the factors that drove their stock prices over the past week.
1. Encanto Potash
Benefiting from the sector’s supply difficulties, Encanto Potash saw the value of its shares increase by more than 100% last week. She is currently focused on exploration and development activities in Saskatchewan.
The company’s latest update was posted on SEDAR in early March and outlines a mutually agreed decision to terminate a master agreement with Horgen Holdings.
Encanto hit a 12-month high last Thursday (March 24) and by the end of the week was up 162.69% at C$0.17.
2. Desert Mountain Energy
Committed to meeting the growing need for essential and renewable resources energyDesert Mountain Energy is engaged in the exploration, development and production of helium, hydrogen and noble gas projects in North America.
March was a busy month for the energy company, which was selected as the “Best Helium Exploration and Development Company – North America” at the Canadian Business Awards.
Last week, the company completed the drilling from its seventh helium well in McCauley’s helium field in Arizona. Friday, Desert Mountain reported that the Arizona Court of Appeals ruled unanimously in his favor and ordered that a previous decision regarding his third well be reversed and returned.
Shares of Desert Mountain rose 71.47% last week, ending the session at C$3.82.
3. Tower Resources
Last Wednesday (March 23), the diverse explorer announcement the start of diamond drilling on the Rabbit North property, located near Kamloops. The program will test a minimum of six drill holes, with the aim of expanding the newly discovered Golden Zone.
On Friday, Tower’s stock value was up 63.82%, with the company closing at C$0.18.
4. Aten Resources
Precious metals Aton Resources is exploring Egypt’s Arabian-Nubian Shield and describes itself as the country’s only public mining company.
Earlier this month, Aton informed shareholders of the latest tranche of results from a Phase II diamond drilling program at its Rodruin gold exploration project. The results highlight the intersection of 1 gram of gold per tonne over 129.5 meters, “confirming broad zones of surface mineralization”.
Shares of Anton soared 59.73% in the last full trading week of March, closing at C$0.29.
5. Great Quest Fertilizer
With projects in Africa, Great Quest Fertilizer is developing its flagship Sanoukou gold project in Mali. Additionally, the company is advancing the Tilemsi phosphate project, also in Mali.
In mid-February, Great Quest firm a previously announced non-brokered private placement for gross proceeds of C$174,500. Last week, shares of Great Quest rose 57.25%, ending the five-day period at C$0.11.
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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