Mediocre earnings and data showing a stagnant gross domestic product sent the S&P/TSX Composite Index down 0.5% to 15,339.77. Mining indexes, however, were in positive territory, with the S&P/TSX Capped Diversified Metals & Mining Index up 10.5% to 828.20; the S&P/TSX Global Mining Index up 3.8% to 69.16; and the S&P/TSX Global Gold Index advancing 4% to 168.30. Gold ended at US$1,177.90 per oz. — its lowest in six weeks — while copper climbed 6% to US$2.91 per lb., nickel, 4% to US$6.22 per lb.; and zinc, 5% to US$1.07 per lb.
Agnico Eagle Mines’ first-quarter results beat expectations, driving its shares $2.26 higher to $38.59. Record first-quarter production of 404,210 oz. gold was up from 366,421 oz. in the year-earlier quarter. Higher production came after including Canadian Malartic, a full quarter of production at La India, higher throughput at Goldex, mill capacity at Kittila and higher grades and better recoveries at Pinos Altos. Total cash costs on a by-product basis were US$588 per oz., and all-in-sustaining costs were US$804 per oz. Agnico expects to produce 1.6 million oz. gold this year at total cash costs on a by-product basis of US$610 to US$630 per oz., at all-in sustaining costs of US$880 to US$900 per oz. Net income in the quarter rang in at US$28.7 million, or US13¢ per share, compared with last year’s US$97.1 million, or 56¢. Adjusted net income in the first quarter was US$31.4 million, or 15¢ per share.
Potash Corp. of Saskatchewan’s shares fell $1.07 to $39.52. The company lowered its full-year earnings guidance to $1.75–2.05 per share. It forecast gross margins on potash in 2015 staying at $1.8 billion and sales volumes at 9.7 million tonnes, but said sales volumes for nitrogen and phosphate would be lower, with a $1.2-billion combined gross margin. In the first quarter, earnings totalled $370 million, or 44¢ per share, up from $340 million, or 40¢ per share in the first quarter of 2014. Gross margins for the quarter reached $667 million, up from $565 million a year earlier, owing to higher prices and a lower per-tonne cost of goods sold in potash, offsetting changes to Saskatchewan’s potash taxes and weaker nitrogen sales.
Disappointing earnings for Goldcorp sent its shares down 41¢ to $22.73. The company reported a first-quarter net loss of US$87 million, or 11¢ per share, compared to net earnings of US$98 million, or 12¢ per share in the first quarter of 2014. Adjusted net earnings reached US$12 million, or 1¢ per share, compared with US$209 million, or 26¢ per share, in the first quarter of 2014.
After shareholders voted against its executive pay plan, Yamana Gold said it would alter its executive compensation program to reflect performance. The company recorded a first-quarter net loss of $135.2 million ($37.5-million adjusted net loss) on $458.1 million in revenue. The miner’s shares fell 2¢ to finish at $4.63 per share.
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