TSX unfazed by US sanctions, May 28-June 1

The U.S. federal government’s decision on May 31 to impose steel and aluminum tariffs on Canada, and Prime Minister Justin Trudeau’s response that Canada will impose a range of retaliatory tariffs on the U.S., did not disrupt Canada’s benchmark index. The S&P/TSX Composite Index lost 0.20% to 16,043.54 during the trading week. The S&P/TSX Global Gold Index fell 0.46% to 189.09, in step with a 0.62% fall in spot gold from US$1,301 per oz. to US$1,293.10 per oz. gold. By contrast, the S&P/TSX Global Mining Index rose 0.99% to 61.42.

Labrador Iron Ore Royalty’s shares jumped $2.28 to $24 apiece after the Iron Ore Co. of Canada (IOC) reached an agreement with unionized workers in Sept-Îles to end a strike that began on March 27. (The strike hurt Labrador Iron Ore Royalty’s revenue, which depends on the sale of iron ore products by IOC.)

The USW Locals 5795 and 6731 in Labrador City voted to accept IOC’s offer, which included competitive terms and conditions for employees — such as improved pension and medical benefits, and more local employment hires. “As we look ahead to safely returning to work, we will focus on listening to each other more and finding solutions together so that we can continue to build a stronger business for the future,” IOC president and CEO, Clayton Walker, said in a statement.

Shares of First Quantum Minerals rose 33¢ to $20.32. The company ended a framework agreement with Northern Dynasty Minerals to help finance the controversial Pebble copper-gold project in Alaska. The two companies were “unable to reach agreement” on the option and partnership agreement outlined in December 2017, which would have seen First Quantum earn a 50% stake in the project. Pebble is one of the world’s largest undeveloped copper-gold deposits.

The discovery of two mineralized zones (Kari Centre and Kari West) near Endeavour Mining its Kari Pump discovery at its Houndé mine in Burkina Faso sent Endeavour’s shares up 27¢ to $22.75. More than 1,000 holes totalling 76,000 metres have been drilled in the Kari gold-in-soil anomaly area since December, extending the mineralized zone to an area that measures 4 km long and 3 km wide. Endeavour says 25% of the anomaly remains to be drilled. Endeavour first found high-grade mineralization at Kari Pump last year, and the zone extends 1.3 km along strike and 160 to 200 metres wide, and is open to the north, northeast and northwest. Kari Center goes 1.2 km along strike and over 200 metres wide, with mineralization open at depth, and Kari West is at least 1 km along strike and 500 metres wide, with mineralization open at depth and towards Kari Pump. Another 65,000 metres of drilling is underway on the three discoveries and to infill drill Kari Pump, with the goal of calculating a maiden resource on the latter before year-end.