TSX rises 3.8% over June 26-30 trading week

Over the June 26-30 trading period, the S&P/TSX Composite Index advanced 737.06 points or 3.8% to 20,155.29. The S&P/TSX Global Mining Index rose 2.01 points or 1.93% to 106.16 and the S&P/TSX Global Base Metals Index added 4.63 points or 2.53% to 187.86. The S&P/TSX Global Gold Index rose by 4.38 points or 1.6% to 278.69 and spot gold ended the week down US$18.45 or 0.96% per oz. lower, at US$1912.25 per ounce. 

Teck Resources shares saw the greatest value gain over the session, after gold royalty company Franco Nevada, which rose 5.2% to $188.81 on no news. Teck’s B class shares rose $3.60 to $55.74 while its A class shares gained $4.15 to close at $56.20. Since rejecting Glencore’s takeover approach in April, Teck has revised its restructuring plans and has been engaging with potential buyers — including Glencore — interested in its metallurgical coal business. Glencore has just made an offer to buy the rest of PolyMet Mining after acquiring an 82.2% stake in April. If it succeeds, it will be a 50-50 partner with Teck at the NewRange Copper Nickel joint venture in Minnesota. 

Barrick Gold saw the highest share volume of the week after oil and gas producer Suncor. Despite a mostly downward trend for gold prices in June, Barrick shares rose 72¢ apiece on trading volume of 17.2 million shares, closing at $22.41. Company CEO Mark Bristow recently said Barrick would continue to invest in Mali, where its Loulo-Gounkoto mining complex has become one of the world’s top 10 gold producers.  

Mali has been ruled by the military since coups in 2020 and 2021. Its leader, Colonel Assimi Goita, has pledged an election will be held in February 2024. In a June referendum, voters approved proposed changes to the constitution that would give more power to the president. Voter turnout was just under 40% of registered voters. 

Avalon Advanced Materials lost 16.7%, shedding 3¢ to end the week at 16¢. In mid-June the company announced plans to partner with Antwerp-based SCR-Sibelco NV to advance its lithium exploration projects in Ontario and build a lithium-hydroxide processing facility in Thunder Bay.  The company completed the purchase of the site on June 19. 

“In addition to accelerating onshore EV production capacity, our plan will help achieve a geostrategic priority for Canada and other G7 nations to establish stable, secure access to refined raw material,” said Avalon president Zeeshan Syed in a release. “While there is more work to do with our government and community partnerships, we are confident we will help close the gap between increasing demand and domestic supply of this key resource and help fortify North American energy security.” 

Cameco shares rose $2.04 to $41.49. While the Saskatchewan-based uranium miner did not release any news during the period, it has benefited from uranium prices that have rallied since mid-March, gaining more than 13% to US$56.20 per lb. in late June, according to Trading Economics.