TSX rises, Nov. 8-12

The S&P/TSX Composite index rose 312.70 points or 1.46% to finish the November 8-12 trading week at 21,768.50. The S&P/TSX Global Mining Index gained 5.97 points or 6.12% to 103.55 and the S&P/TSX Global Base Metals Index increased 9.32 points or 5.68% to 173.44. Gold climbed to US$1,865.20 per oz., up US$47.20 per oz. or 2.60%.

Shares of Agnico Eagle Mines and Kirkland Lake Gold climbed during the Nov. 8-12 trading week. The companies announced that proxy advisory firm Institutional Shareholder Services (ISS) recommended that both sets of shareholders vote in favour of the previously announced all-share ‘merger of equals.’ “There appears to be sound strategic rationale for a combination between the companies, with the transaction anticipated to confer operational synergies on an annual basis, as well as a number of G&A synergies and strategic optimizations over five- and ten-year time horizons,” ISS stated. “The addition of members of the [Kirkland Lake Gold] board and management to the combined company should expand the expertise necessary to drive improvements and realize some of the expected synergies under the transaction. Finally, as the majority of the production and reserves of the combined company are located in Canada where both companies have a healthy track record of operations, some of the risks inherent to the achievement of synergies are partially mitigated.” Agnico Eagle’s shares climbed $4.90 to $71.59 and Kirkland Lake’s shares rose $3.68 to $56.21.

Newmont’s shares advanced $3.52 to $73.70. The company announced a strategic alliance with Caterpillar Inc. to work towards net zero emissions mining. Newmont will provide a preliminary investment of US$100 million for the deployment of an all-electric autonomous haulage fleet across two continents. The alliance plans to deliver 26 battery electric autonomous vehicles in underground and open pit operations by 2027. At its Cripple Creek and Victor mine in Colorado, Newmont will introduce an automated haulage fleet of up to 16 vehicles through 2023, with a transition to haulage fleet electrification and implementation of Caterpillar’s advanced electrification and infrastructure system and the delivery of a test fleet in 2026. Caterpillar will also develop its first battery electric zero-emissions underground truck to be deployed at Newmont’s Tanami mine in Australia by 2026. This will include a fleet of up to ten battery electric underground haul trucks, including first of a kind battery electric haulage technology for underground mining in 2024, the introduction of battery autonomous technology in 2025, with full deployment in 2026.

Mountain Province Diamonds jumped 44.9% to 71¢ per share. The company reported third quarter revenue from 1,027,000 carats sold at $94.2 million at an average realised value of $92 per carat — the second-highest quarterly revenue in the company’s history. Earnings from mine operations was $35.5 million compared to a $2.2 million loss in the third quarter of 2020.