TSX posts small gain, Aug. 30-Sept. 3

The S&P/TSX Composite Index rose 176.80 points or 0.86% to finish the August 30 to September 3 trading week at 20,821.40. The S&P/TSX Global Mining Index fell 0.92 points or 0.87% to 104.40 and the S&P/TSX Base Metals Index dropped 0.32 points or 0.19% to 170.63. The S&P/TSX Global Gold Index rose 2.78 points or 0.96% to 293.97 and spot gold rose US$10.80 per oz. or 0.60% to US$1,827.60 per ounce.

Cameco Corp.posted the largest gain, rising $4.58 to $27.04 per share on no corporate news. But spot uranium hit US$38.50 per lb. on September 3, the highest level since the first quarter of 2015, Colin Hamilton of BMO Capital Markets commented in a research note. “This will further advance market discussions on whether utilities are getting scared yet about security of supply, and also about what plans producers may have to restart idle capacity,” the London-based mining analyst noted.

Higher uranium prices also helped boost the share prices of a number of other uranium-focused companies. Denison Mines advanced 33¢or 23.2% to $1.75 per share; NexGen Energy rose $1.57 or 28.2% to $7.14 per share; Global Atomic gained 31.9% to $3.76; Fission Uranium climbed 24¢ or 44.4% to 78¢; Azarga Uranium jumped 50% to 54¢ per share; UEX Corp. finished 29.7% higher at 48¢ and Mega Uranium was up 38.3% to 33¢.  

Fission Uranium reported scintilometer results from its summer drill program on the R840W zone at its PLS project in Saskatchewan’s Athabasca region. The zone is about 485 metres to the west along strike of the junior’s Triple R deposit’s ROOE zone. Fission said all 25 holes hit mineralization, with 19 of them intercepting intervals of greater than 10,000 cps [counts per second] radioactivity. This included PLS21-624, which returned 57.5 metres of continuous mineralization, including 19.15 metres of total composite radioactivity of greater than 10,000 cps.

Global Atomic reported that the Republic of Niger government will not increase its ownership stake in the company’s Dasa uranium project beyond the minimum 10% interest decreed under its Mining Code. President and CEO Stephen Roman said in a press release that the government’s decision “confirms our decision to enter Niger in 2005 in search of uranium deposits,” and noted that mining and uranium mining in particular “has been a significant part of the country’s economy for 50 years.” Global Atomic plans to bring the 12-year Phase 1 of the project into full production by the end of 2024.

Shares of Teck Resources climbed $1.61 to $35.61. The diversified Canadian miner announced on August 25 that it would pay a dividend of 5 cents per share on its outstanding Class A common shares and Class B subordinate voting shares on September 29 to shareholders of record as of September 15.