TSX falls during Apr. 18-22 trading week

Over the Apr. 18-22 trading period, the S&P/TSX Composite Index fell 692.03 points or 3.2% to 21,186.38. The S&P/TSX Global Mining Index decreased 15.14 points or 12.85% to 117.82 and the S&P/TSX Global Base Metals Index fell 30.71 points or 15.41% to 199.25. The S&P/TSX Global Gold Index fell 31.02 points or 9.07% to 341.86 and spot gold ended the week down 1%, or US$22.45 per oz. lower, at US$1,941.55 per ounce. 

Shares of Trevali Mining fell 41.3% to $1.11 as flooding at its Perkoa zinc mine in Burkina Faso on Apr. 16 disrupted operations and left eight underground miners missing. In a statement on Apr. 21, the company said that the requirements to repair the mine were still not known. As such, the company wasn’t able to predict when the mine would restart. In the meantime, rescue efforts continue with support from the government, local communities and other mining companies in the area, it said. “Our primary focus has been, and will remain, the search and rescue of the missing eight miners,” said the company’s CEO, Ricus Grimbeek. According to Trevali’s initial assessment, a heavy rainfall event that occurred outside the usual rainy season and poured about 125 mm of rain in less than an hour triggered flash floods thatbreached the open pit at Perkoa. As the water entered the open pit and subsequently, the underground mine, electricity and communications were lost. While most of the workers managed to escape, the company hasn’t been able to communicate with the eight missing workers ever since, Trevali said. After flooding stopped, the water level in the mine settled at the mine’s Level 520, which is 520 metres from surface. The mine is developed down to Level 710, said Trevali. 

As Russia intensified its attack on Ukraine during the week, shares of Ukraine-focused iron ore developer Black Iron fell 22.2% to 11¢. On Apr. 6, the company said that it would not be able to publish its feasibility study for the Shymanivske project until peace has returned to the Dnipropetrovsk region of Ukraine. It said that its consulting engineering firm, Wood, cannot meet the requirements for completing a feasibility study under National Instrument 43-101 guidelines without conducting another site visit.  

Shares of Newmont fell $12.14 or 12.8% to $94.80 after the company announced its first quarter results for this year. While the company’s revenues were in line with estimates, Newmont reported higher-than-expected operating costs. Newmont also suggested in the press release and on a conference call that global supply chain disruptions and labour shortages could continue to weigh on its operations and projects. Analysts say that the pandemic and the Russia-Ukraine conflict have contributed to significant challenges for all miners, not just Newmont. The company produced 1.3 million oz. gold at an all-in sustaining cost (AISC) of US$1,156 per oz., and reported an adjusted net income of $546 million.