TSX markets nosedive during Mar. 6-10 trading week

Over the Mar. 6-10 trading period, the S&P/TSX Composite Index fell a substantial 806.66 points or 3.9%, to 19,774.92. The S&P/TSX Global Mining Index lost 8.65 points or 7.5% to 106.48, and the S&P/TSX Global Base Metals Index fell 24.48 points or 11.6% to 186.46. The S&P/TSX Global Gold Index contracted by 9.17 points or 3.34% to 265.27, and spot gold ended the week US$20.10 per oz. higher, or 1.09% higher, at US$1,861.25 per ounce.

Only a handful of miners could add value amid a generally tepid trading week on the markets. NioCorp Developments led the charge, closing 4¢ per share higher at $1.32 on Friday after announcing an expression of funding interest for its Elk Creek critical minerals project in Nebraska. The Export-Import Bank of the United States (EXIM) has signalled its interest in potential financing of up to US$800 million for the project. Should it be granted, the funding will be provided through EXIM’s “Make More In America” initiative. Niocorp also announced on Mar. 10 that its shareholders have approved a merger with GX Acquisition Corp. II and up to $81 million in financing deals to advance its Elk Creek critical minerals project. NioCorp is developing North America’s only advanced materials manufacturing facility for producing niobium, scandium and titanium, all considered critical minerals by the U.S. government.

The biggest value loser this week was Teck Resources, which is soon to be rebranded as Teck Metals following the spin-out of its coal-focused business unit. The stock closed the week $8.06 lower at $84.63. In late February, Teck announced a plan to split the company into Teck Metals and Elk Valley Resources, which will hold its steelmaking coal business. Under the plan, Teck shareholders will receive 0.1 of a common share in Elk Valley Resources for each Teck share they hold plus 39¢ in cash per share. In exchange for the coal assets, Elk Valley Resources will make quarterly payments to Teck Metals consisting of royalty payments and preferred share redemptions through a transition capital structure.

The biggest percentage gainer was Excelsior Mining which saw shares close 12.8% higher on Friday at 27¢ apiece. It published an updated preliminary economic assessment (PEA) for Arizona’s Johnson Camp heap leach project. The PEA considers the results of the 2022 drill program and incorporates sulphide leaching technology to improve recoveries. As part of the PEA, the company republished a prefeasibility study update on the North Star deposit of the Gunnison copper project. The Gunnison project is designed as a copper in-situ recovery mine using solvent extraction-electrowinning to produce copper cathode. The Johnson Camp mine is a conventional open pit and heap leach operation. The Johnson Camp has an after-tax net present value and internal rate of return at a 7.5% discount of US$180 million and 30.4%, respectively.