TSX rises as gold miners fall, March 17-21

The S&P/TSX Composite Index was up 77 points to 14,335.76 points for the period, as better-than-expected retail sales and stronger economic data from south of the border lifted investors’ spirits. Several closely watched leading indicators rose last month by the largest amount in three months, which triggered optimism that economic growth could have a comeback.

The S&P/TSX Global Gold Index tracked the falling gold price down 15 points to 197.95 points, while the yellow metal shed US$47 to US$1,336 per oz.

The S&P/TSX Capped Diversified Metals & Mining Index enjoyed renewed strength — up 16 points to 786.87. The copper price recovered only a little bit after its recent sell-off, with the red metal up a cent to US$2.95 per lb.

Semafo was the most actively traded mining stock for the period, with volume of 33.4 million. But unfortunately for the company all that activity was net negative, as its share price fell 52¢ to $4.19. A downgrade to a “sell” rating from a “buy” at Jennings Capital may have been the culprit. Jennings’ analyst Stuart McDougall pointed to the stock’s recent price appreciation as a reason for the downgrade, noting that he views Semafo’s underlying fundamentals, growth potential and exploration upside as positive.

North American Palladium was one of the period’s top performers, with its shares up 23% to 59¢. The Toronto-based producer updated markets on its reserve and resource estimates and life-of-mine at its Lac de Îles mine in northwestern Ontario. Total reserves and resources of contained palladium rose 24% to 5.2 million oz., and the extra ounces had the company increasing the mine life one year to 2019, with production of over 200,000 payable oz.

Financial results weren’t kind to Atna Resources, which reported a $49.6-million net loss last year. While the fourth quarter generated a $1.5-million cash flow, investors focused on the losses and sent its valuation down 30% to 14¢ per share. The loss included a $33.1-million impairment charge, $10.3-million deferred tax-asset writeoff, $2.6 million in inventory writedowns and $1.1 million in writeoff loan fees. Gold sales from its Briggs and Pinson mine totalled 36,252 oz. gold compared to 36,454 oz. last year.

Gran Colombia Gold saw its share price fall 25% to $1.65, likely due to dilution. The company closed an equity financing during the period, where it issued 8.4 million units for  $1.93 per unit. While the move diluted existing shareholders, it raised $16.3 million in capital. Some of the cash will go towards repaying a recent bridge loan, while some will help initiatives that improve cash flows, grow production and expand resources at the Segovia project in Colombia.

TSX most active issues

TSX greatest percentage change

TSX greatest value change