TSX falls during Sept. 19-23 trading week

Stocks were pummelled over the Sept. 19-23 trading period as investors fled, fearing a global recession brought on in part by central banks raising interest rates to quell inflation. The S&P/TSX Composite Index fell 904.9 points or 4.7% to 18,480.98. The S&P/TSX Global Mining Index slid 3.7 points or 4.1% to 85.99, and the S&P/TSX Global Base Metals Index dropped 10.2 points or 6.6% to 144.2. The S&P/TSX Global Gold Index fell by 7.1 points or 3.1% to 222.7, and spot gold ended the week at US$21.10 per oz. lower, or 1.2%, at US$1,643.55 per ounce.

The largest drop by value among miners was Teck Resources, which fell $4.25 to $39.75 after it reported its Elkview steelmaking coal operations in B.C. would be halted for as long as two months for repairs. The site’s third quarter output is likely to be reduced to between 5.5 million tonnes and 5.9 million tonnes compared with a previous estimate of as much as 6.2 million tonnes.

Suncor Energy lost $3.84, dropping to $36.95 as recession fears pushed the price of oil lower, closer to where it is less economically feasible for the company to extract crude from the Alberta oilsands. 

Wheaton Precious Metals fell $1.78 to close at $40.83 after several analysts at TD Securities, National Bank, Stifel Nicolaus and KeyCorp lowered their price targets for the stock. The company has 23 mines and 13 development projects across gold, silver, palladium and cobalt.  

One of the top gainers by value was Turquoise Hill Mining, which added 61¢ to close at $40.69 after a U.S Federal Court in New York dismissed a class action suit against the miner. Investment funds manager Pentwater Capital Management of Naples, Florida, had alleged Turquoise made false or misleading statements about the progress of its Oyu Tolgoi copper and gold mine in Mongolia. The suit was launched in 2020. The mine produced 60,800 tonnes of copper concentrate and 107,000 oz. of gold in the first half of this year, down by 26% and 59%, respectively, compared to 2021’s first six months, company records show. Pentwater, which recently upped its stake in Turquoise Hill to 13.8%, has come out against Rio Tinto’s sweetened US$3.3-billion takeover offer for the 49% interest in Turquoise Hill it doesn’t already own.

One of the largest percentage gainers was Avalon Advanced Materials, which added 22% to close at 18¢ after it signed a deal with LG Energy Solution of South Korea to supply lithium hydroxide used in electric vehicle battery production. It was one of three agreements LGES signed with Canadian suppliers for minerals used in batteries. The others are with Snow Lake Lithium and Electra Battery Materials, which is to supply refined cobalt. LG Energy is banking on North American electric car sales to surge.