TSX gains during Sept. 6-9 trading week

Over the Sept. 9 trading period, the S&P/TSX Composite Index gained 502.49 points or 2.6%, to 19,773.34. The S&P/TSX Global Mining Index jumped 5.48 points or 6.25% to 93.23 and the S&P/TSX Global Base Metals Index fell 11.9 points or 7.79% to 164.63. The S&P/TSX Global Gold Index rose by 10.34 points or 4.59% to 235.47 and spot gold ended the week US90¢ per oz. higher, or 0.05%, at US$1,714.40 per ounce.

Nutrien was this week’s top value-gainer, adding $2.98 to close at $123.80 on no news. However, the company recently reported record interim profits, with its realized potash price levels recovering to multi-year highs. Nutrien’s net profit for the second quarter of 2022 was up 224% year-on-year to US$3.6 billion. CEO Ken Seitz told an analyst conference call that the ripple effects of the conflict in eastern Europe will continue to drive demand for Nutrien products for many years. Nutrien’s operating income was US$4.5 billion in the second quarter, up 169.3% year-over-year, prompting the board to declare a quarterly dividend of US48¢ per share.

Agnico Eagle Mines was another top value gainer this week, adding $2.77 to close at $57.41 per share. The senior gold producer released exploration results from several of its assets last month, reporting significant step-outs at two of its larger operations, including Detour Lake in northeastern Ontario, and encouraging results at several other assets. This exploration success combined with steady reserve growth has set Detour Lake up for production growth and a longer mine life, with the possibility that it could become a million-ounce producer. Despite this news, Agnico Eagle is trading at lower levels and continues to be hurt by weak sentiment sector-wide amidst aggressive interest rate hikes by central banks.

Argonaut Gold was one of the top percentage gainers in the week, adding 19.6% to close at 55¢ per share. On Sept. 6, Argonaut reported positive drill results from deep drilling at its Magino project in Ontario, with high-grade intercepts below. The ongoing drill program continues to intersect multiple zones of mineralization at depth along a strike length of 1,500 metres, reinforcing the underground expansion potential below the planned Magino open pit. The deep drilling program has now tested the gold mineralization along a 1.5-km trend to depths greater than 1 km. With the Elbow and Central Zones on the eastern margins and the South Zone on the west, a large-scale mineralized system has been shown to continue significantly down-dip below the planned open pit at Magino, where construction of a 10,000-tonne per day operation is underway. To date the company has drilled over 130,000 metres to establish the resource continuity of the mineralized system. First gold at the mine, which has seen escalating capital costs during construction, is expected next spring.