TSX posts slim gain, March 30-April 2

Canada’s gross domestic product shrank 0.1% in January compared with a 0.3% rise in December, but the drop was less than some economists had anticipated, and the country’s benchmark index gained 1.5% to finish at 15,026.62. (Markets were closed for the Good Friday holiday on April 3.) The gold price stayed more or less flat, up just US$3.60 per oz. to end at US$1,202 per oz., and the S&P/TSX Global Gold Index climbed 1.1% to 162.20. The S&P/TSX Capped Diversified Metals & Mining Index advanced 2.97% to 696.47, while the S&P/TSX Global Mining Index lost 0.3%, falling to 64.04.

Potash Corp. of Saskatchewan gained 88¢ to finish at $41.05 per share. The company reported that Canpotex has finalized potash supply contracts for 2015 with all of its big customers in China, and confirmed pricing was at “current competitive levels.” Canpotex expects 2015 shipments to China will hit at least 1.8 million tonnes, exceeding the 1.6 million tonnes shipped in 2014. Canpotex also said that shipment volumes could increase up to 2.5 million tonnes, depending on market demand, supply availability and logistics.

Imperial Metals rose 40¢ to $12.82. The company reported a 2014 net loss of $37.3 million, or 50¢ per share, compared to net income of $41 million, or 55¢ per share, in 2013. Imperial said the variation in net income came from reduced metal production and $67.4 million in remediation costs for the Mount Polley tailings dam breach. Last year’s net loss included foreign-exchange losses related to changes in exchange rates of $20.5 million, compared to foreign exchange losses of $2.5 million in 2013.

Mountain Province Diamonds completed a $95-million rights offering, sending its shares up 29¢ to $4.75. The company will use the proceeds to fund a US$75-million cost overrun facility. Mountain Province is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine in the Northwest Territories.

Romarco Minerals has agreed with its lenders to make a previously announced US$200-million debt facility in two tranches: a $180-million project facility and a $20-million cost overrun facility. The credit agreement will be signed by mid-April and includes no mandated gold hedging. The debt facility, along with a recent equity financing, fully funds Romarco’s Haile gold project in South Carolina. Romarco’s shares fell 5¢ to 44¢.

MBAC Fertilizer plunged 44% to 3¢ per share, after the company said it couldn’t file its audited financial statements for 2014 before the March 31 deadline due to “liquidity and working capital” difficulties. The company delayed the audit of its financial statements “until it was certain it would have sufficient resources to complete the audit and other year-end work.” The company expects to file its annual financial statements by April 30.