TSX posts gains, Nov. 10-14

The S&P/TSX Composite Index posted its fifth straight week of gains, buoyed in part by strong economic data showing manufacturing sales in Canada climbed 2.1% to $53 billion in September, compared with a 3.5% drop in August. The S&P/TSX Composite Index advanced 152.27 points, or 1% to 14,843.10, while the S&P/TSX Capped Diversified Metals & Mining Index advanced 17.6 points, or 2.52%, to 715.31, and the S&P/TSX Global Gold Index climbed 2.88 points, or 1.99%, to 147.74. The gold spot price rose US$10 to US$1,188.50 per oz. 

B2Gold’s shares were the most actively traded and fell 3¢ to $1.93. The company reported a US$274.1-million net loss (negative 39¢ per share), mainly due to non-cash impairment charges at its Masbate mine in the Philippines and its Gramalote joint-venture in Colombia. Consolidated gold production in the third quarter reached 90,192 per oz. (9% less than the same quarter in 2013), at cash-operating costs of US$732 per oz. and all-in sustaining costs of US$1,117 per oz. Production in the quarter was affected by issues with the the semi-autogenous grinding mill at Masbate and installation delays of a dewatering system at its Limon mine in Nicaragua. Cash flow from operating activities before changes in working capital reached US$27 million, or 4¢ per share, and the company ended the quarter with US$179 million in cash. B2Gold forecasts 2014 production of 380,000 to 385,000 oz. — lower than its original forecast of 395,000 to 420,000 oz. — and expects all-in sustaining costs will be near the higher end of its guidance range of US$1,025 and US$1,125 per oz. The first gold pour at its Otjikoto mine in Namibia is expected in mid-December.

Shares of New Millennium Iron jumped 42.1% to 27¢. The junior — which owns 20% of the DSO project (Tata Steel owns 80%) — announced rail haulage on Genesee & Wyoming’s newly built KéRail spur line that services the DSO project. The spur line will allow Tata Steel to complete the DSO project, New Millennium said on Nov. 12. The company reported that the crushing and screening operation is fully established and the processing plant for producing higher-grade fines is 80% complete.

Silver Wheaton increased $1.42 to $22.80 per share. The company reported attributable silver-equivalent production in the third quarter of 8.4 million oz., down 7% from the 9.1 million equivalent oz. silver it reported in the third quarter of 2013. After including the impact of a $68.2-million impairment charge related to its Mineral Park and Campo Morado silver interests, the company posted net earnings of $4.5 million, or 1¢ per share. Operating cash flow reached $120.4 million, or 34¢, with average cash costs of US$4.16 per oz. silver and US$378 per oz. gold. On a silver-equivalent basis, average cash costs decreased to US$4.59 per oz., compared with US$4.73 per oz. in the year-earlier quarter.