TSX wrap for week of August 8: Base metals drop as Franco-Nevada prints cash 

Over the shortened Aug. 8-11 trading week, the S&P/TSX Composite Index gained 171.53 or 0.8% to 20,407.57. The S&P/TSX Global Mining Index lost 1.02 points or 0.94% to 107.27, and the S&P/TSX Global Base Metals Index dropped 5.86 points or 2.95% to 192.31. The S&P/TSX Global Gold Index rose by 1.78 points or 0.64% to 276.69 and spot gold ended the week off US$26.65 per oz., or 1.3% lower at US$1,915.80 per ounce.  

 Leading the value gainers was Franco-Nevada (TSX: FNV; NYSE: FNV), closing up $4.64 at $192.02 per share after it announced positive second-quarter results on Aug. 8. While the value of Q2 results in 2023 was several percentage points lower than in the second quarter last year, such as adjusted net income at 7% lower, CEO Paul Brink said in a release that the company’s portfolio keeps generating strong cash flows and high margins. “The second quarter’s results benefited from our core assets returning to normal production and deliveries caught up from the disruptions in Q1,” he said. “We are looking forward to increased contributions from Cobre Panama, where the CP100 Expansion is on-track for year-end, and to contributions from royalties on several new mines.” The company added in the release that it has $2.3 billion in available capital as of June 30, no debt and had generated $261.9 million in operating cash flow during the quarter. 

Also making value last week was Nevada Copper (TSX: NCU; US-OTC: NEVDF), which closed Friday up 17.6% at 20¢. On Aug. 11, the company gave an update on restarting activities at its Pumpkin Hollow underground mine in western Nevada. Development in the second quarter increased by 65% to 1,424 feet (434 metres), compared to 496 feet in the first quarter. The surface stockpile has increased to about 73,000 tons of crushed ore, and the mill is on track to restart in September 2023. The company reiterated its outlook for 2023 with the main goal of reaching a nameplate milling throughput of 5,000 tons per day by the end of the year.  

Barrick Gold (TSX: ABX; NYSE: GOLD) was among the top-traded issuers and closed the week up 69¢ at $22.74 per share after 13.7 million shares changed hands. On Aug. 8, CEO Mark Bristow said in a news release the company was on track to meet its 2023 gold and copper guidance as it advances major projects. Bristow also commented on the giant’s second-quarter results, with improved performance at the Carlin complex in Nevada, the Kibali gold mine in the Democratic Republic of Congo and the Lumwana copper mine in Zambia. All three “laid a sound foundation for production” in the second half of the year and are expected to surpass the first. Gold production in the second quarter was up 6% at more than 1 million oz., and copper output increased by 22% to 107 million pounds.