TSX ends mixed, Feb. 1-5

Toronto’s S&P/TSX Composite Index slipped 0.5% to 12,763.99 after a poor jobs report, while oil prices dropped and gold prices rebounded. The S&P/TSX Global Mining Index rose 9.4% to 45.25, while the S&P/TSX Capped Diversified Metals & Mining Index jumped 10.2% to 305.84. The S&P/TSX Global Gold Index advanced 17.2% to 164.87, as the spot gold price surged 4.3%, or US$48.20, to US$1,166 per oz. The U.S. benchmark West Texas Intermediate for delivery in March fell US$2.73 to US$30.89 per barrel.

The Canadian economy lost 5,700 jobs in January, missing the 6,000-job increase that analysts had expected. The unemployment rate crept up to 7.2% from 7.1% in December. The economy in oil-producing Alberta was the heaviest hit. The province lost 10,000 jobs last month and its jobless rate rose from 7% to 7.4% — the highest since February 1996.

New exploration results from Corvus Gold’s North Bullfrog property in Nevada sent its shares soaring 80% to 71¢. The company reported results from three more target areas on the property, including two in the new Eastern Steam-heated zone. Initial scout drilling on the target areas has returned wide zones of low-grade gold-silver mineralization, with some internal zones grading more than 1 gram gold per tonne. Corvus has planned an initial 9,000-metre exploration program at North Bullfrog this year.

First Quantum Minerals saw heavy trading after reporting its production and sales for fourth-quarter and full-year 2015. Its shares rose 90¢ to finish at $3.93 on 53.7 million shares traded. Last year First Quantum produced 428,229 tonnes copper, including 32,971 tonnes pre-commercial production from its Sentinel project in Zambia. It also churned out 35,472 tonnes nickel, 223,914 oz. gold and 41,139 tonnes zinc. BMO analyst Aleksandra Bukacheva says the results were in line with her expectations, and the company’s most recent guidance. Full-year copper sales were 409,000 tonnes — 2% below Bukacheva’s estimate — while sales for gold, nickel and zinc were higher than she had estimated. The miner will publish its three-year production guidance, production cost and capital expenses before releasing its 2015 financials. Bukacheva has an $8 target and “outperform” rating on the stock.

Gold companies topped the value-winners’ list on the back of a higher gold price. Royal Gold gained $12.96 to finish at $54.60 per share. On Feb. 3, it reported record revenue of $98.1 million for the quarter ended Dec. 31, 2015. This is up 60% from the previous year’s quarter of $61.3 million. Net income attributable to Royal Gold stockholders was $15.1 million, or 23¢ per share, compared to a $6.5-million net loss. Gold-equivalent ounces came in at a record 88,700, up 74% from the earlier year. Franco-Nevada shares advanced $7.60 to $69.63; Agnico Eagle Mines jumped $5.03 to $46.55 per share; and Goldcorp shares climbed $3.16 to $19.12, on no major news.