TSX up slightly, Aug. 11-15

The S&P/TSX Composite Index rose 0.71% to 15,304.24 while the S&P/TSX Capped Metals & Mining Index fell 2.06% to 885.07. The S&P/TSX Global Gold Index climbed 0.36% to 204.05 and the spot price for gold lost US$4.60 per oz., to close at US$1,304.50.

Torex Gold Resources was the most actively traded stock of the week with 31.9 million shares changing hands. Its share price rose 16¢ to $1.67. On Aug. 11 the company announced that its subsidiary had signed a credit agreement and other documentation giving effect to a syndicated US$375-million, 8.25-year senior secured project finance facility for developing its El Limon–Guajes project. More money became available on Aug. 13 when Torex received $84.8 million from the exercise of 56.5 million warrants at $1.50 apiece. Torex is developing its El Limon–Guajes mine 180 km southwest of Mexico City. The company reported on Aug. 14 that mining for the Guajes pit and contruction of a road to the El Limon pit are both on schedule. 

The second most actively traded stock with 20.9 million shares changing hands was B2Gold. Its shares fell 6¢ to $2.87. The gold producer reported its financial results on Aug. 14. Gold production in the second quarter reached 85,704 oz., which is 5% below budget, but a 4% increase over the second-quarter of 2013. Consolidated cash-operating costs were US$720 per oz. — in-line with the company’s budget — and US$12 per oz. lower than in the year-earlier period. Cash flow from operating activities before changes in non-cash working capital reached US$29.9 million, or 4¢ per share, and B2Gold held US$134.8 million in cash as of June 30. B2Gold reported that mine construction of its 90%-owned Otjikoto project in Namibia remains on budget and schedule, with production expected to start in the fourth quarter of this year.

The new 50-50 owners of Canadian Malartic — Agnico Eagle Mines and Yamana Gold — updated the mine’s reserves on Aug. 13. Proven and probable reserves total 263 million tonnes grading 1.06 gram gold per tonne for 8.9 million oz. gold using a US$1,300 per oz. gold price. Global resources, including reserves, total 314 million tonnes grading 1.07 grams gold for 10.8 million oz. gold.

The two companies reported that the addition of the 5% royalty payable to Osisko Gold Royalties increased the highest cut-off grade from 0.33 gram gold per tonne to 0.35 gram gold, which is a 60,000 oz. decrease to the reserve base from estimates published earlier by Osisko, the mine’s previous owner. The partners also announced that a US$100 per oz. decline in the gold price would only reduce Canadian Malartic’s reserves by 3.3%, or 310,000 oz. Agnico-Eagle shares advanced 73¢ to $42.96, while Yamana’s shares slipped 1¢ to $9.46.   

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