TSX rises over the Feb. 6-10 trading week

Over the Feb. 6-10 trading period, the S&P/TSX Composite Index rose by 146.22 points or 0.7% to 20,758.34. The S&P/TSX Global Mining Index gained 3.34 points or 2.9% to 116.22 and the S&P/TSX Global Base Metals Index ended 10 points or 4.9% higher at 202.37. The S&P/TSX Global Gold Index gained 9.47 points or 3.3% to 290.92 and spot gold ended the week flat at 1864.82 per oz., down just US93¢. 

The big news of the week was Newmont’s takeover offer for Newcrest Mining, which sent the Australian gold producer’s shares up $2.83 apiece or 14.1% over the week to end at $22.94. The unsolicited US$17-billion all-share offer implies a 21% premium based on Newcrest’s stock price prior to the bid. Newmont has offered 0.38 Newmont shares for each share in Newcrest. Newcrest shareholders would own 30% of the combined company. Newcrest, which was originally formed via a spinout from Newmont in the 1960s, says it is considering the offer. 

One of the week’s top percentage gainers was Sabina Gold & Silver, which advanced 26¢ or 19.7% to close at $1.58. The company, which is advancing its Back River gold project in Nunavut toward production, did not release news during the period. However, B2Gold announced a friendly, $1.1-billion, all-stock takeover bid for the company on Feb. 13. The rally leading up to the announcement suggests news of the acquisition may have leaked out early. 

Nighthawk Gold gained 15.7% during the week to end at 48¢. The junior updated the resource estimate at its Colomac gold project in the Northwest Territories, reporting a jump in total gold ounces of more than one-third. The company is working on a preliminary economic assessment for the project, which is located 200 km north of Yellowknife and has seen open pit production in the 1990s. 

The project contains an open pit, indicated resource of 59.8 million tonnes grading 1.5 grams gold per tonne for 2.8 million oz. gold. Open pit inferred resources total 10.8 million tonnes grading 2.3 grams gold for 802,000 oz. gold.   

“If the project is developed, it could have the potential to be a top-tier gold project with respect to size, scale, and economics, located in a mining-friendly jurisdiction,” said Keyvan Salehi, Nighthawk president and CEO in a press release. 

Cameco shares added $1.77 over the week to end at $38.98. On Feb. 9, the Saskatchewan-based uranium miner reported a net profit of $89 million on revenue of $1.9 billion for 2022 compared with a $103 million loss on revenue of $1.5 billion the previous year. Cameco pointed to rising uranium prices last year, boosted by a resurgence in nuclear energy and by supply disruptions caused by Russia’s invasion of Ukraine.