TSX falls during Mar. 21-25 trading week

Over the Mar. 21-25 trading period, the S&P/TSX Composite Index fell 3.19 points or 0.014% to 22,005.94. The S&P/TSX Global Mining Index increased 2.06 points or 1.61% to 127.39 and the S&P/TSX Global Base Metals Index rose 4.35 points or 1.92% to 226.52. The S&P/TSX Global Gold Index rose 0.29 points or 0.08% to 350.04 and spot gold ended the weekUS$18.75 per oz. higher, or 0.95%, at US$1,953.80 per ounce.  

Shares of Fortuna Silver Mines fell by 8.7% or 46¢ to $4.80. The company released its financial and operational results for 2021 and also reported an increase in its mineral reserves. The company produced 7.5 million oz. silver and 207,192 oz. gold in 2021, compared to 7.1 million oz. silver and 55,349 oz. gold in 2020. It reported a net income of US$59.4 million in 2021, compared to US$21.6 million in 2020. The company’s earnings per share were lower than analysts had expected, with the earnings miss driven by higher-than-expected operating costs, administrative expense, and depreciation. The company also increased its proven and probable gold reserves by 81% on a year-on-year basis, while its silver reserves decreased by 10%. More than half of the new reserve ounces are from assets acquired through Fortuna’s takeover of Roxgold Resources last June. Proven and probable reserves at the company’s Caylloma mine in Peru total 3.2 million tonnes grading 84 grams silver per tonne, 0.2 gram gold per tonne, 2.53% lead, and 3.7% zinc. The Yaramoko mine in Burkina Faso adds 2.1 million tonnes grading 6.78 grams gold. The Seguela project in Cote d’Ivoire hosts reserves of 12.1 million tonnes grading 2.8 grams gold. In all, the reserves contain 3.2 million oz. gold and 25.9 million oz. silver.   

Shares of Wallbridge Mining fell 10.7% to 38¢. The company announced the completion of its underground development at its flagship Fenelon gold project, allowing it direct access to the Area 51 zone The deposit is 75 km northwest of Matagami in northern Quebec. The company calls reaching the Area 51 zone a ‘significant milestone’ in that it allows tightly spaced underground drilling, geologic mapping and grade control sampling to proceed for the first time. Preliminary results confirm that there is a network of mineralized veins with strong continuity over wide sections of more than 30 metres. Grade continuity was also confirmed. “After completing approximately 1,800 metres of underground development, we have had our first opportunity to see and touch Area 51 gold mineralization since our team discovered this zone in 2019,” said Wallbridge VP exploration Atilla Pentek. “Everything we’ve observed so far increases our confidence.”  

Shares of Lithium Americas rose $7.72 or 21.9% to $42.96 apiece on the back of rising lithium prices. The company reported increased annual expenses and a bigger net loss for 2021, compared to 2020. Its expenses rose to US$46.1 million from US$30.6 million, while its net loss increased to $38.5 million from US$36.2 million in 2020. The higher net loss is “primarily attributable” to higher spending on its Thacker Pass project in Nevada, the subject of a feasibility study due in the second half of this year. The company received key environmental permits for the project, which contains measured and indicated resources of 13.7 million tonnes at 2,231 parts per million lithium, in February.