TSX dips slightly, Dec. 11-15

The U.S. Federal Reserve raised interest rates 0.25% — its third rate increase this year. The central bank said it expects three more interest rate increases in 2018. Spot gold rose 0.60% to US$1,255.10 per oz., and the S&P/TSX Global Gold Index gained 1.54% to 188.77. Base metals had a good week, with copper rising 4.6% to US$3.1l per lb.; zinc up 3.6% to US$1.45 per lb.; and nickel up 5.5% to US$5.23 per pound. The S&P/TSX Composite Index fell 0.34% to finish at 16,041.98.

Agrium rose $5.25 to $141.74 per share. The company signed a binding purchase agreement for Macrofertil, a fertilizer distribution business in Australia that has US$120 million in annual sales. Macrofertil has six fertilizer storage and distribution assets with coating and blending capabilities, and its annual sales exceed 300,000 tonnes.

Shares of Altius Minerals rose $1.14 to $14.64. The company reported net earnings of $6.75 million, or 16¢ per share in its fiscal second quarter (the three months ended Oct. 31), up from $4.50 million, or 10¢ per share, in the fiscal first quarter. In the second quarter of 2016, net earnings totalled $287,000, or 1¢ per share. Altius said the results were driven by higher production volumes and realized prices across most of its royalty portfolio. The company also increased its dividend by one-third to 4¢ per quarter, or 16¢ per year. Altius holds royalties and streams from 15 mines in Canada and Brazil that produce copper, zinc, nickel, cobalt, iron ore, potash, and thermal and metallurgical coal.

Katanga Mining jumped 55% to $1.75 as it completed hot commissioning of its new whole ore leach (WOL) processing facility at its Kamoto copper-cobalt mine in the Democratic Republic of the Congo. The mine is owned by Katanga’s subsidiary, Kamoto Copper Company (KCC). The Luilu site, where the WOL and electrowinning plants are located, produced its first copper cathode on Dec. 11. KCC’s copper and cobalt production was suspended in September 2015, pending the construction of the WOL project. The company expects the processing facility will reach full capacity on the first train by March 2018. Construction of the second train of the WOL plant is on schedule and hot commissioning could start in the second half of 2018. The board has also approved capex of US$15.8 million to build a facility designed to lower throughput bottlenecks in its cobalt processing circuit at KCC, and another US$49 million for cobalt product dryers as part of the cobalt production circuit. Hot commissioning is expected in the fourth quarter of 2018.

Kirkland Lake Gold’s shares were down 79¢ to $17.13. The company announced it is selling Stawell Gold Mines to an affiliate of Arete Capital Partners for US$6.25 million in cash and a 2.5% net smelter return royalty. Stawell Gold Mines owns the Stawell gold mine in Australia’s Victoria state. Kirkland Lake has a second mine in the state called Fosterville.