TSX finishes in the red, Feb. 22-26

Canada’s benchmark index slipped 0.1% to close at 12,797.79, despite higher crude oil prices. The S&P/TSX Capped Diversified Metals & Mining Index, however, gained 0.7% to close at 352.81. The S&P/TSX Global Gold Index fell 0.61% to 176.95, as the spot gold price declined US$4.20 per oz. to US$1,221.80. The April contract for crude oil climbed 10.6% to US$32.78 per barrel on the New York Mercantile Exchange.

Shares in Talon Metals advanced 44% to 13¢ after it reported that drilling has resumed on the Tamarack nickel-copper-PGE project in Minnesota. The Tamarack project includes the Tamarack North and Tamarack South projects. Talon earned an 18.45% interest in the project last December by giving US$15 million to Kennecott Exploration. For Tamarack’s 2016 winter drill program, Kennecott has planned an initial seven- to nine-hole campaign to focus on three areas: 221 zone, the Neck, and the Tamarack zone. The entire current resource — totaling 3.8 million indicated tonnes grading 2.35% nickel-equivalent and 3.4 million inferred tonnes of 2.11% nickel-equivalent — sits within the Tamarack zone.

New Millennium Iron shares rose 36% to 8¢ as it continued to fend off dissident shareholders. Last week, it filed a management information circular urging shareholders to dismiss the dissidents’ attempts to gain control of the board with only 7% of the company’s shares. It also re-iterated its strategy, called NuTac, to build shareholder value once iron ore prices turnaround. On Feb. 22, the dissidents filed a management information circular, arguing the current board and management has destroyed shareholder value. They outlined a plan to remove six directors, halt NuTac, further reduce costs, and improve disclosure. To complicate matters, both parties in the following days reported that the Institutional Shareholder Services (ISS) supported their views, asking shareholders to side with them during the upcoming special shareholders meeting on March 15.

Goldcorp was the biggest value loser following disappointing 2015 financials coupled with a dividend cut and lower expected production for the next three years. The miner posted an annual net loss of US$4.2 billion, or US$5.03 per share, compared to a net loss of US$2.66 per share in 2014. It also recorded a fourth quarter loss of US$4.3 billion, which included a US$3.9 billion write-down. Annual production was 3.46 million oz. gold at all-in sustaining costs of US$894 per oz., including inventory impairments. The strong operating results led to annual free cash flow of US$335 million before dividends, up from a loss of US$1 billion in 2014. Goldcorp, however, changed its monthly dividend payments of US2¢ to a quarterly basis. It is guiding annual gold production of 2.8 million to 3.1 million oz. during the next three years. The miner fell $2.52 per share to $18.73.

Teck Resources saw heavy trading after announcing several senior executives are set to retire in the coming months, as well as a consequent restructuring of senior management to streamline the organization. Teck shares slipped 49¢ to $7.66 as 41 million shares traded hands.