TSX posts marginal gain, Jan. 21-25: Royal Nickel, Endeavour Mining, SSR and Barrick

The S&P/TSX Composite Index rose 0.41% to 15,366.05. The S&P/TSX Global Mining Index gained 1.71% to 68.54, while the S&P/TSX Global Base Metals Index fell 1.03% to 107.44. Spot gold moved US$21.30 per oz. higher to finish the week at US$1,302.60 per oz., and the S&P/TSX Global Gold Index jumped 5.20% to 181.21.

Royal Nickel posted the highest trading volume based on drill results from its Beta Hunt mine in Australia. Drilling in the sediment layer within the Western Flanks shear zone returned 7,621 grams gold per tonne over 0.27 metre within a 2-metre intercept of 1,017.3 grams gold. The hole was drilled within 45 metres of existing development. “Only Kirkland Lake’s Fosterville mine and Pretium Resources’ Brucejack mine have yielded higher grade intersections over the last four years,” the company states. Highlights from drilling in the A Zone targeting the sediment layer near the Father’s Day Vein, returned 119.37 grams gold over 6.4 metres. Royal Nickel’s shares rose 12¢ to 66¢.

Shares of Endeavour Mining were up $1.87 to $21.92 on strong production results. The company produced 612,000 oz. gold in 2018, up 52% year on year and surpassing the top end of its 555,000-590,000 oz. guidance. All-in sustaining costs dropped US$30 per oz. to about US$745 per oz. and below the guidance range of US$760-810 per oz. For 2019, AISCs are expected to range from US$760 and US$810 per oz., and full-year production is forecast to increase to 615,000-695,000 oz. gold. The company plans to spend about US$45-50 million on exploration this year. Endeavour operates two mines in Burkina Faso (Hounde and Karma) and two mines in Cote d’Ivoire (Agbaou and Ity).

SSR Mining ’s shares climbed $1.19 to $16.61. In mid-January the company reported that it had exceeded its 2018 production guidance, churning out over 345,000 gold-equivalent ounces, and says it expects to produce 395,000 gold equivalent ounces (GEO) in 2019 at cash costs of US$700 per GEO. The company has three operating mines: Marigold in Nevada, Seabee in Saskatchewan, and joint-venture Puna in Argentina.

Shares of Barrick Gold rose 56¢ to $16.20. The company reported preliminary 2018 production of 4.53 million oz. gold (excluding production from Randgold Resources). Barrick’s preliminary copper production came in at 383 million pounds. Randgold Resources reported preliminary 2018 production of 1.28 million oz. gold.

Pan American Silver’s shares were down 56¢ to $18.25. The company produced 24.8 million oz. silver, 178,900 oz. gold, 64,800 tonnes of zinc, 22,400 tonnes lead and 9,800 tonnes copper in 2018 at preliminary cash costs per payable oz. silver, net of by-product credits, of US$3.35 per oz. Excluding the assets Pan American will receive from its acquisition of Tahoe Resources (the deal is expected to close on Feb. 26), the company is forecasting 2019 production of 26.5-27.5 million oz. silver, 162,500-172,500 oz. gold, 65,000-67,000 tonnes zinc, 24,000-25,000 tonnes lead and 9,800-10,300 tonnes copper. The company currently owns and operates six mines in Mexico, Peru, Argentina and Bolivia.