TSX moves higher, Oct. 11-15

The S&P/TSX Composite Index rose 511.8 points or 2.51% to 20,928.10 during the Oct. 11 to Oct. 15 trading week. The S&P/TSX Global Mining Index increased 5.73 points or 6.02% to 100.85, and the S&P/TSX Global Base Metals Index rose 14.82 points or 9.3% to 174.39. The S&P/TSX Global Gold Index advanced 12.9 points or 4.8% to 281.74, and spot gold climbed US$10.30 per oz. to finish the week at US$1,767.40 per ounce.

First Quantum Minerals gained $4.40 to $29.90 per share. The miner announced a new US$2.925 billion term loan and revolving credit facility, which replaces its existing US$2.7 billion term loan and revolving credit facility due to mature in December 2022. The new facility consists of a US$1.625 billion term loan facility and a US$1.3 billion revolving credit facility maturing in September 2025. The refinancing extends the company’s debt maturity profile and removes all material debt maturities through to April 2023, the company said.

Teck Resources’ A shares rose $3.00 to $40 and its B shares were up $2.89 to $36.17. The company announced that it has been named to the Forbes list of the World’s Best Employers of 2021, an employee-driven ranking of multinational companies and institutions. This is the second year in a row that Teck has been on the list. Forbes and market research firm Statista selected the companies through an independent survey applied to about 150,000 employees from 58 countries working full or part time. The evaluation was based on direct and indirect recommendations from employees that were asked to rate their willingness to recommend their own employers to friends and family.

Shares Turquoise Hill Resources fell $1.96 to $16.23. The company reported third-quarter production at the Oyu Tolgoi open pit mine in Mongolia on a 100% basis of 41,935 tonnes of copper and 130,799 oz. gold, year-on-year increases of 16% and 256%, respectively. Turquoise Hill said its 2021 copper and gold production guidance remains 150,000 to 180,000 tonnes of copper and 400,000 to 480,000 oz. gold. The company also said that the full impact of previously disclosed open-pit geotechnical events as well as the ongoing impact of Covid-19 restrictions have resulted in delayed waste movement, which is forecast to result in deferral of some open-pit metal to beyond 2024. As for underground development, the company said all technical undercut readiness activities have been completed or are on track for completion, and Oyu Tolgoi “has been ready from a technical perspective to commence the undercut since July 2021. However, undercut commencement remains delayed and is pending resolution of certain non-technical undercut criteria, including the support of all Oyu Tolgoi board directors to increase the underground development capital and to commence discussions with the project finance lenders, obtaining outstanding, required regulatory approvals and to agree on a pathway to meet OT’s long-term power requirements.” It also noted that the underground delays and open-pit metal deferrals have caused an increase in the company’s base case estimated incremental funding requirement to US$3.6 billion. “While OT has indicated further open-pit mine plan optimization opportunities are under consideration, which could have a favourable impact on the company’s estimated incremental funding requirement, related work is not expected to be completed until the first quarter of 2022.”

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