TSX books solid rise over July 10-14 trading week
Over the July 10-14 trading week, the S&P/TSX Composite Index advanced 451.38 points or 2.3% to 20,262.07. The S&P/TSX Global Mining Index rose 6.28 points or 6% to 110.58 and the S&P/TSX Global Base Metals Index added 7.8 points or 4.2% to 195.25. The S&P/TSX Global Gold Index rose by 19.26 points or 7.1% to 291.65 and spot gold ended the week up US$31.40 or 1.6% per oz. higher, at US$1953.70 per ounce.
Fertilizer giant Nutrien lost 76¢ to $80.10 per share as a port strike in Vancouver forced it to cut production at its Cory potash mine in Saskatchewan. The company said on July 11 that the loss of export capacity caused by the strike, which began on July 1, would push its full-year adjusted earnings below the lower end of its previous guidance. It also blamed lower global potash prices as a contributing factor. The company plans to update its guidance on Aug. 2, when it releases its second quarter results. The port strike ended on July 13 with more than 7,000 port workers and the BC Maritime Employers Association signing a four-year tentative deal, the terms of which were proposed by a federal mediator.
Endeavour Silver rose 21.8% to $4.52 after reporting it’s on track to meet its annual guidance of 8.6-9.5 million silver-equivalent ounces. For the second quarter, the Mexico-focused silver miner reported production of 1.5 million oz. silver and 9,819 oz. gold, or 2.3 million oz. silver equivalent from its Guanacevi and Bolanitos mines.
The company recently greenlit construction of what will be its third mine – the Terronera underground mine in Jalisco state. The project is expected to cost US$230 million to build, and initial production is expected before the end of 2024. Terronera is expected to produce nearly 70 million oz. of silver equivalent over 10 years.
Sulliden Mining Capital shares rose 40% to end the week at 4¢. The junior said on July 10 that it was acquiring up to 70% of a private Namibian company with gold and lithium projects in the country. Sulliden can earn a 51% interest in the Damara project and a 25% equity in the private company through payments and exploration funding totalling US$2.9 million. It can top up its interest in Damara through funding another US$4 million in exploration costs. Damara hosts the Khorixas and Outjo gold projects as well as the Omatjete gold and lithium project over a total land package of 3,077.8 sq. km.
The news follows another acquisition announcement in late June – the company signed a purchase agreement to buy 75% of the Orange Creek uranium project in Australia’s Northern Territory for A$400,000.
