TSX rises during the Feb. 7-11 trading week

The S&P/TSX Composite Index rose 313.34 points or 1.45% to 21,548.84 during the Feb. 7-11 trading week. The S&P/TSX Global Mining Index increased 4.40 points or 3.89% to 113.09 and the S&P/TSX Global Base Metals Index climbed 11.91 points or 5.86% to 202.96. The S&P/TSX Global Gold Index rose 10.62 points or 3.54% to 299.63 and spot gold climbed US$17.60per oz. or 0.96% to US$1,831.15 per ounce.  

Cameco’s shares rose by $2.99 to $28.36. On February 9, the company announced plans to restart its McArthur River mine and Key Lake mill in Saskatchewan this year. The assets, 70% owned and operated by Cameco, have been in care and maintenance since mid-2018. By 2024, McArthur River and Key Lake are planned to reach 60% of capacity, producing 15 million lb. uranium annually. At the same time, production from Cameco’s 50%-owned Cigar Lake mine in Saskatchewan will be reduced to 13.5 million lb. per year, which is 25% below capacity. Significant investment in automation, digitalization and other projects are also planned, and the company expects to incur operational readiness costs until a “reasonable” production rate is achieved. In 2021, the company operated at only 25% of its productive capacity, which Tim Gitzel, Cameco’s CEO, noted came at a significant cost to the business.

Shares of Barrick Gold gained $1.92 to $26.38. The company reported that at US$1,200 per oz., its attributable proven and probable reserves grew to 69 million oz. gold at 1.71 grams gold per tonne, from 68 million oz. gold at 1.66 grams gold per tonne in 2020. Barrick said that it had succeeded in replacing its global gold reserve base by 150% before accounting for acquisition and equity changes at its South Arturo and Porgera mines and noted that the reserve base came with a 3% improved group reserve grade in 2021. CEO Mark Bristow said in a February 10 press release that successful exploration continued to replenish the company’s asset base and target pipeline, securing its business plans well into the future. The reserve replacement comes amid industry-wide depletion of reserves and resources. “While we look closely at all new business opportunities, we believe finding our ounces is always better than buying them,” Bristow said. “That’s why we’re still discovering real value at the end of our drill bits.”  

Orvana Minerals jumped 27.8% to 46¢. On February 11, the company announced financial results for the three months ended December 31, 2021. During the period it produced 15,921 gold equivalent oz. (11,731 oz. gold, 1.5 million lb. copper and 48,752 oz. silver) at an all-in sustaining cost of US$1,574 per gold-equivalent ounce. Orvana also said it would be filing an updated preliminary economic assessment report for its Taguas project located in Argentina’s San Juan province.