TSX mixed, May 10-14

The S&P/TSX Composite Index fell 0.54% to 19,366.69 during the May 10-14 trading week. The S&P/TSX Global Mining Index slipped 2.25% to 113.84, and the S&P/TSX Global Base Metals Index dropped 4.95% to 178.76. Spot gold increased by US$13.20 per oz., or 0.72%, to US$1,843.90 per oz., and the S&P/TSX Global Gold Index rose 1.76% to 322.07.

Turquoise Hill Resources dropped $5.66 to $19.99 per share. The company reported first-quarter revenue of US$526.5 million, a 303% increase from the same quarter last year, buoyed by higher commodity prices and production from its Oyu Tolgoi mine in Mongolia, one of the world’s largest gold-copper-silver mines. The mine produced 45,449 tonnes of copper in the first quarter, up 29% year-on-year, and 145,656 ounces of gold, up 461.5% year-on-year. However, the company has cut its full-year production outlook to reflect modifications to its Oyu Tologi mine design in Phase 4B and increased uncertainty from Covid-19 related controls now in place at the site. The Canadian miner has revised its 2021 gold production forecast to 400,000-480,000 oz., down from 500,000-550,000 ounces, and cut its copper production guidance to 150,000-180,000 tonnes from its previous 160,000-180,000 tonnes.

Shares of Hudbay Minerals decreased by $1.42 to $9.78. The company posted a net loss in the first quarter of $60.1 million or 23¢ per share. After adjusting for one-time financing charges mainly related to the redemption of 2025 senior notes and a revaluation of its gold repayment facility, first quarter adjusted net loss per share came in at 6¢. First quarter adjusted EBITDA was $104.2 million. The company reported consolidated production of 24,553 tonnes of copper and 35,500 oz. of gold. Hudbay also announced that consolidated copper and gold production are expected to increase by 36% and 125%, respectively, by 2023 from 2020 levels as it brings its Pampacancha and New Britannia growth projects into production.

Harte Gold fell 16.7% to $13¢. The company has lowered its 2021 production guidance and hiked its cost estimates. Harte Gold now expects to produce 50,000-55,000 oz. of gold, down from its earlier forecast of 60,000-65,000 oz. gold, and at all-in sustaining costs of US$1,800-US$2,200 per oz., compared with its previous target of US$1,400-US$1,550 per ounce. “Although we have continued to make good progress over the past three quarters, we also continue to face challenges that are preventing us from achieving our previous targets and stated guidance,” Frazer Bourchier, Harte Gold’s CEO stated. “Achieving a steady-state ore mine production rate of 800 tonnes per day, representing approximately 5,200 oz. per month, continues to be the company’s main priority,” the company said in a news release, adding that it hopes to meet that target late in the fourth quarter. The miner also noted that it would not generate sufficient cash from operations to fully fund its planned investment activities and debt service obligations, including a US$3.3 million principal repayment to BNP due at the end of next month.