TSX Venture edges higher over the Oct. 17-21 trading week

The S&P/TSX Venture Composite Index edged up 11.95 points or 2.1% over the Oct. 17-21 trading session to end at 593.04. 

Sigma Lithium was the week’s top gainer by value, rising $7.58 to $48.42 per share. While the emerging lithium miner did not release any recent news, it is benefiting from lithium prices that continue to rally on tight supplies. Sigma is nearing the end of construction of the first phase of its Grota do Cirilo project in Minas Gerais state, Brazil. The hard rock spodumene project is initially expected to produce 34,000 tonnes per year of lithium carbonate equivalent. A second phase expansion would add another 33,000 of LCE production. Lithium prices hits an all-time high on Oct. 13, with Chinese battery-grade lithium carbonate rising to US$74,475 per tonne.  

The next top gainer by value was Los Andes Copper, adding $1.13 to $14.25 per share on no news. The company is working on a prefeasibility study for its Vizcachitas porphyry copper-molybdenum project, 120 km north of Santiago, Chile, due out before the end of the year. The company had experienced a setback at the project in March, when a court suspended its environmental licence and Los Andes had to suspend drilling. A July environmental court decision reinstated the drilling permit with certain operational conditions, including a restricted drilling plan for the first 12 months. Los Andes plans to restart exploration shortly. The court order related to the protection of the Andean cat, a threatened species, and the potential impact of the drill program on the habitat of the vizcachas, a small rabbit that is part of the cat’s food chain. A 2019 preliminary economic assessment outlining a large-scale 45-year open pit operation with daily throughputs of between 55,000 and 200,000 tonnes with capital costs of between $1.3 billion and $2.8 billion. 

Nouveau Monde Graphite lost 44¢ over the week to end at $6.93 per share as it announced a framework agreement with Mitsui and Panasonic. At this stage, Nouveau Monde has a non-binding memorandum of understanding with Panasonic for an offtake of the company’s product. Nouveau Monde released a feasibility study on its Matawinie graphite project and Bécancour battery material plant this summer, with the combined capex totalling $1.4 billion. 

Nouveau Monde also announced a US$50-million financing by Mitsui (US$25 million), Pallinghurst and Investissement Québec (US$12.5 million each). The private placement, consisting of convertible notes, will support the finalization of the design, operation, marketing and corporate parameters of Nouveau Monde’s commercial integrated operations, the company said.