TSX posts 3.5% gain, Feb. 15-19

Canadian stocks fell on Feb. 19, snapping four days of gains, as crude oil fell below US$30 per barrel in New York. However, the S&P/TSX Composite Index posted a 3.5% weekly gain to close at 12,813.40. The S&P/TSX Global Mining Index moved up 2.2% to 47.89, while the S&P/TSX Capped Diversified Metals & Mining Index surged 20% to 350.21. The S&P/TSX Global Gold Index, however, slipped 1.5% to 178.04, as the spot gold price fell US$11.90 per oz. to US$1,226. 

Platinum Group Metals soared 70% to $2.69 per share on no corporate news. On Feb. 16, the company said it was not aware of any corporate developments that led to the share price increase. It added its policy is not to comment on rumours or speculation. On Feb. 9, Platinum Group Metals completed hot commissioning for its Maseve platinum mine, previously known as the “Western Bushveld Joint Venture Project 1.” The South African mine also produced its first concentrate. 

Colorado-based Golden Minerals rose 63.5% to 85¢ per share after reporting the Sentient Group converted part of its loan — plus interest — into Golden shares, effective Feb. 11. Golden received a $5-million secured, one-year convertible loan last October, with its shareholders approving the conversion this January. As part of the transaction, Sentient converted $3.9 million of principal and $100,000 in accumulated interest into 23.4 million Golden shares. Sentient now holds 76.7 million shares, or 49% of the junior. The remaining $1.1 million of the loan matures on Oct. 27, 2016. The lender can convert this into shares at any time before maturity. 

Shares in Franco-Nevada advanced $3.33 to $78.75 after a US$920-million financing. On Feb. 19, the company closed the previously announced offering of 19.2 million shares, including the exercise in full of the over-allotment option at US$47.58 apiece. Franco-Nevada sold the shares on a bought-deal basis through a group of underwriters led by BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and Scotiabank. It will use the net proceeds to fund the US$500-million acquisition of a gold-silver stream on Glencore’s Antapaccay mine in Peru. The remaining funds will go towards working capital.  

First Quantum Minerals climbed $1.29 to $4.58 per share on 54 million shares traded. The company reported higher copper production, lower costs and better comparative earnings in the three months ended December 2015, compared to a year ago. However, its full-year 2015 comparative earnings were US$267 million, or US41¢ per share, which is half of what was earned in 2014, after lower sales revenues. It cut Cobre Panama’s development capital 7% — or US$500 million to US$5.95 billion — based on efficiencies achieved to date, with more reductions expected. The large open-pit copper development project is in Panama.