TSX end July 25-29 trading week in the black

Over the July 25-29 trading week, the S&P/TSX Composite Index gained 588.44 points or 3.1% to end at 19,104.48. The S&P/TSX Global Mining Index gained 5.15 points or 5.9% to 92.64; and the S&P/TSX Global Base Metals Index added 10.78 points or 7.4%. 

The S&P/TSX Global Gold Index also turned positive, rising 12.86 points or 5.7% to 238.62, while spot gold advanced US$34.5 or 2% to end the week at US$1,753.40 per oz.  

Fertilizer giant Nutrien recorded the highest value change of $8.45 for the week to close at $109.62. On July 20, the Saskatoon-based company announced it signed an agreement to acquire Brazilian Ag retailer Casa do Adubo. It did not specify the price it was paying for the acquisition, but said it would expand its presence in Brazil to 13 states from five. The deal, which needs to be approved by the Administrative Council for Economic Defense (CADE) in Brazil, will give Nutrien 39 retail locations and 10 distribution centres, and help it surpass its target of US$100 million of adjusted EBITDA in Brazil by 2023. 

UEX Corp. shares rose by 39.7% to close at 48¢ on the highest volume of the week at 29.1 million shares traded. The uranium exploration company, which in June entered into a friendly, all-share deal to be acquired by Uranium Energy Corp. , announced on July 29 that Denison Mines made a superior offer. Uranium Energy has five business days to amend its original offer, which had an implied value of around 43¢ per share — a 50% premium at the time. 

The acquisition would consolidate Denison’s interest in its Wheeler River uranium project in Saskatchewan, the largest undeveloped project in the eastern Athabasca basin. The company is currently advancing a feasibility study for the Phoenix deposit at Wheeler River to be developed as an in-situ recovery project. UEX holds a 5% interest in the project through its 50% ownership in JCU (Canada) Exploration, with Denison owning the other 50%.. 

UEX holds a portfolio of uranium exploration projects in Saskatchewan’s Athabasca basin. In addition to the interest in Wheeler River, JCU holds interests in Cameco’s Millennium project (30.1%) and Orano Canada’s Kiggavik project (33.8%) in Nunavut. 

Monarch Mining shares gained 26.3% during the week to 48¢ as it reported its first gold bar produced at its Beaufor mine and Beacon mill in Quebec on July 27. The company expects to reach commercial production at the 750-tonne-per-day mill, located east of Val-d’Or, in the coming months. Monarch has been working for 18 months to restart the past-producing project, which has measured and indicated resources of 1.3 million tonnes grading 5.3 grams gold per tonne for 219,200 oz., but no reserves.