TSX gains 2% in year’s first trading week

Markets got off to a good start in 2023 with the S&P/TSX Composite Index rising 429.59 points or 2.2% to finish the holiday shortened Jan. 3-6 trading week at 19,814.51. The S&P/TSX Global Mining Index gained 7.5 points or 6.9% to 116.36 and the S&P/TSX Global Base Metals Index jumped 11.43 points or 6.3% to 192.08. The S&P/TSX Global Gold Index climbed 24.23 points or 8.7% to 302.02 and the gold spot price closed at US$1,865.70, up US$41.20 per oz. or 2.3%. 

Management changes at Star Diamond sent its shares up 60% to 12¢. The company announced on Dec. 28 that starting Jan. 1 Ewan Mason would become interim CEO. Mason has been a director since 2017 and is board chairman. The exploration geologist owns several private companies and previously served as managing director at several mining investment banks in Canada and overseas. Star Diamond’s former president and CEO, Ken MacNeill, retired on Dec. 31. Star Diamond also announced that its chief financial officer Greg Shyluk, has resigned and will step down on Jan. 19. The company also informed shareholders that it is “working to assess Star Diamond’s cost and management” structure. Star Diamond’s flagship asset is its stake in the Fort a la Corne property in central Saskatchewan. 

Shares of Skeena Resources jumped 21.2% to $8.74. The company announced Jan. 3 that it had closed its royalty sale with Franco-Nevada on its Eskay Creek gold-silver project in northwest B.C.’s Golden Triangle. Skeena granted a 0.5% net smelter return royalty (NSR) on the project to Franco-Nevada in exchange for a cash consideration of $27 million and contingent consideration of $1.5 million. Franco-Nevada’s shares gained $3.37 to finish the trading week at $187.94. 

Euromax Resources dropped 16.7% or 8¢ on news of its financing plans. On Dec. 28 the company said it will issue 101.3 million units at a price of 4¢ per unit to the Netherlands-based ND Group for proceeds of US$3 million. Euromax’s flagship asset is its Ilovica-Shtuka copper-gold project in southeastern Macedonia.  Euromax stated that ND Group’s “wealth of experience” across Southeastern Europe and the footprint of its investment portfolio in the Republic of North Macedonia “will be a great asset” to its project. If the warrants in each unit are exercised over a two-year period, the company will receive additional proceeds of $10.1 million. Upon completion of the private placement, the ND Group will exercise control and direction over about 101.25 million common shares and 101.25 million warrants representing about 22.3% of Euromax’s common shares on a non-diluted basis and 44.5% on a partially diluted basis. ND Group will also have the right to nominate two members to Euromax’s board, one of whom will be appointed as Euromax’s president and executive director until it no longer holds more than 10% of the company.