TSX moves higher, April 25-29

After posting a 0.6% gain in January, Canada’s gross domestic product shrank 0.1% in February, but still beat expectations of a 0.2% contraction, according to Bloomberg data. The U.S. Federal Reserve’s decision to hold interest rates steady was positive for gold, which climbed US$60.20 per oz., or 4.9%, to finish at US$1,292.40 per oz. The S&P/TSX Global Gold Index climbed 12.8% to 228.67. Canada’s benchmark index rose 0.6% to finish at 13,951.45, while the S&P/TSX Capped Diversified Metals & Mining Index advanced 14.6% to 594.10, and the S&P/TSX Global Mining Index gained 6.6% to 60.76.

Royal Gold topped the charts with a $7.16 increase to $78.47 per share. The royalty and streaming company reported that its attributable net gold reserves increased to 5.8 million oz. at the end of 2015, compared with 5.1 million oz. at the end of 2014. Royal Gold said the increase came after acquiring the Wassa and Prestea, Rainy River, Andacolla and Pueblo Viejo streams. In this year’s first quarter, Royal Gold reported a net loss attributable to shareholders of US$67.7 million, or US$1.04 per share, compared to net income of US$25 million, or US38¢ per share, in the year-earlier quarter. The decrease owed to previously disclosed impairments of royalty and stream interests, and royalty receivables totalling US$99 million, which came out to US$1.33 per share after taxes in the third quarter. Excluding the after-tax effect of the impairments, adjusted net income attributable would have been US$18.9 million, or US29¢ per share.

Detour Gold gained $2.71 to finish at $26.91 per share. The gold producer reported results for the first quarter that included net income of US$27.6 million, or 16¢ per share, and adjusted net earnings of US$11.3 million, or 7¢ per share. Detour produced 127,136 oz. gold, which was at the lower end of its production guidance, at total cash costs of US$637 per oz. sold and all-in sustaining costs (AISCs) of US$824 per oz. sold. The company reaffirmed its 2016 guidance of between 540,000 and 5990,000 oz. gold at total cash costs of US$675 to US$750 per oz. sold, and AISCs of US$840 to US$940 per oz. sold. Detour also announced that it has lowered its debt level by repurchasing US$75-million convertible notes from Paulson & Co.

Shares of First Quantum Minerals were the most traded and increased $1.93 to $10.69 apiece on the back of strong quarterly results. The company announced earnings of US$63 million — or US9¢ per share in the first quarter of 2016 — up from a net loss of US$12 million, or US2¢ per share in the first quarter of 2015. Cash flow from continuing operations reached US$254 million, up from US$134 million in the first three months of 2015. The company posted record copper production of 119,287 tonnes in the first quarter, up from 91,910 tonnes in the year-earlier quarter.