TSX dips, April 7-11

The S&P/TSX Composite Index fell 135.41 points during the trading week to close at 14,257.69. The S&P/TSX Capped Diversified Metals & Mining Index jumped 12.55 points to 814.81. The S&P/TSX Global Gold Index slipped 1.07 points to 184.19, despite the spot gold price advancing US$16.10 per oz. to US$1,318.40. 

Thompson Creek Metals was one of the week’s top percentage gainers, up 19.5% to $3.12. On April 9, the company reported its first-quarter production results. It churned out 28.2 dry tonnes, containing 14.2 million lb. copper and 39,200 oz. gold from its Mt. Milligan copper–gold mine in B.C. Its other two molybdenum mines, Endako in B.C. and Thompson Creek in Idaho, generated 7.9 million lb. moly during the quarter. Sales totalled 10.8 million lb. copper, 23,900 oz. gold and 8.6 million lb. moly.

Royal Gold, a precious metals royalty and stream company, dominated the value-added chart, moving up $2.37 per share to $72.67. The Denver-based firm also has a right to buy 52% of the gold produced from Thompson Creek’s Mt. Milligan for the lesser of US$435 per oz., or the prevailing gold price. It received 4,780 oz. gold in the first quarter from the Mt. Milligan mine, and expects to receive another 13,000 oz. from shipments that occurred in the first quarter.

North American Palladium, which operates the Lac des Îles palladium mine near Thunder Bay, Ont., was the biggest percentage loser, down 38.6% to 33¢. The firm reported that it closed the second tranche of its previously announced public offering of 7.5% convertible unsecured subordinated debentures and warrants, raising $30 million in gross proceeds. The funds will help cover expenses at the Lac des Îles mine, including exploration, as well as for generate corporate purposes. The mine produced 42,500 payable oz. palladium during the three months ended March 31, 2014. 

Montreal-based Osisko Mining was the most actively traded stock, with 66.4 million shares traded after Goldcorp, the second-largest gold miner by market value, bumped up its hostile takeover offer for the junior by $1 billion to $3.6 billion, beating Yamana Gold’s $3.4-billion bid. Goldcorp is offering its smaller rival 0.17 of its share and $2.92 in cash for each share held. The offer expires April 22 and requires 50.1% of Osisko shareholders to approve the deal. 

Earlier in the week, Osisko reported record first-quarter gold production of 140,029 oz. from the Canadian Malartic mine in Quebec, its sole producing asset that has attracted the acquisitive eye of senior producers. The firm milled 4.3 million tonnes grading 1.13 grams gold per tonne during the quarter. 

Osisko closed the week up 16¢ at $7.54, while Goldcorp lost 91¢ to $26.45, on 13.8 million shares traded.

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