TSX dips, April 2-6

Canada’s benchmark index fell 1.04% to 12,207.41. The S&P/TSX Global Mining Index fell 1.41% to 69.03 and the S&P/TSX Global Gold Index fell 0.33% to 185.95, while the gold price rose 0.63% to US$1,333.4.

Shares of Torex Gold Resources rose $3.66 to $11.57. The company first reported an illegal blockade at its ELG mine complex in southwest Mexico in November 2017. The blockade was centered on the main gate and consisted of 20 workers demanding a change in labour union to the Los Mineros Union. The issue persisted into January 2018, when the blockade was removed by the Guerrero State government.

Shortly after, it was reported that trespassers apparently backed by Los Mineros were attacking mine workers on their way to the El Limon gold pit. As a result, the public access road and worker’s camp were deemed unsafe, and work was once again suspended. Issues at the mine persisted until early April, when the company reported that negotiations had put an end to the issues. Despite the disturbances, Torex produced 67,000 oz. gold doré in the first quarter of 2018.

Shares of Caledonia Mining rose $1.67 to $10.54. The company says it will benefit financially from changes made to Zimbabwe’s export credit rule at its flagship, 49%-owned Blanket gold mine, 15 km west of Gwanda. The Reserve Bank of Zimbabwe raised the Export Credit Incentive paid to gold miners from 2.5% to 10% in February. As a result, the company could earn another US$5.1 million in 2018.

The company pegged production from the Blanket gold mine for the quarter ended March 31 at 12,924 oz. gold, in line with expectations. The company expects to produce as much as 59,000 oz. gold this year, and has a long-term 80,000 oz. gold target by 2021.

Shares of Endeavour Mining fell 86¢ to $22.91. The company recently released its 2017 fourth-quarter and full-year results. Full-year production improved 12% year-over-year to 663,000 oz. gold, while all-in sustaining costs fell US$17 per oz. to US$869 per oz., in line with company expectations. Endeavour finished the year with US$323 in available financing and liquidity, which increased to US$503 million after convertible bonds were issued at the end of February. However, the company ended the year with a net debt of US$232 million — up from US$221 million at the end of the third quarter.

This year, the company expects to increase production as high as 720,000 oz. gold and invest as much as US$45 million on exploration — 40% of which would go to greenfield opportunities.