TSX stays flat, July 25–29

The S&P/TSX Composite Index stayed relatively flat at 14,582.74. The benchmark index increased 3.7% in July, marking its best month since March. The S&P/TSX Capped Diversified Metals & Mining Index rose 8.9% to 688.92, while the S&P/TSX Global Mining Index climbed 4.1% to 67.51. The S&P/TSX Global Gold Index advanced 4.7% to 273.88, and the gold spot price increased 2.1% to US$1,350.40 per oz. gold. The September contract for crude oil tumbled 7% to US$40.06 per barrel.

New Millennium Iron rose 57% to 11¢ per share after announcing that the Quebec government provided $175 million to Tata Steel Minerals Canada to support the development of the direct-shipping ore project (DSO), near Schefferville, Que. New Millennium holds a 6% interest in the DSO project. The investment includes a $50-million loan from Investissement Québec and a $125-million equity stake through the government’s Capital Mines Hydrocarbons fund. Earlier this year, New Millennium fought off a dissident shareholder group unhappy with the company’s management, which among other things, diluted the previous 20% interest in the DSO project to 6% by not funding Tata’s cash calls.

Rubicon Minerals jumped 30% to 7¢ per share on 21.6 million shares traded. In a July 28 release, Rubicon said it “is not aware of any material, undisclosed information that would account for recent trading activity.” The company owns the Phoenix gold project in Ontario, which underwent a significant resource reduction in January, after data revealed the deposit was more geologically complex than thought. The junior is assessing strategic alternatives.

Golden Star Resources shares tumbled 22% to $1.03 on its second-quarter financials and financing news. The Ghana-focused gold producer reported adjusted earnings of US1¢ per share, compared to an adjusted loss of US7¢ per share a year ago. It is offering US$65 million in convertible senior notes due in 2021. It has signed exchange and purchase agreements with two holders of its 5% convertible senior unsecured debentures due June 1, 2017, to exchange US$40 million of the outstanding convertible debentures for an equal principal amount of new notes. It is also raising US$30 million in equity, where it will offer 40 million shares for US75¢ apiece. It intends to use the proceeds from both offerings to strengthen its balance sheet and repay its debt.

Agnico Eagle Mines added $5.32 to close at $75.98. The gold major reported an adjusted profit of US16¢ per share, above the US10¢ per share that analysts had expected. It earned an adjusted US9¢ per share a year ago. During the second quarter, Agnico delivered 408,932 oz. gold, at all-in sustaining costs on a by-product basis of US$848 per oz. gold. Agnico reduced its net debt by US$181 million to US$742 million. It increased its quarterly dividend by US2¢ to US10¢.