Toronto stocks end mixed, Sept. 28-Oct. 2

The S&P/TSX Composite Index had a turbulent week, falling 0.3% to 13,339.74, despite cutting some of its earlier losses, after positive Canadian data. The country’s gross domestic product number for July came in at 0.3%, after two quarters of negative growth. This strengthened the loonie, which jumped higher on the back of a weak U.S. jobs report, to finish at US76.02¢.

The U.S. economy added 142,000 jobs in September, below the expected 200,000. The unemployment rate remained at 5.1%. The Labor Department also lowered its job numbers for the previous two months. It estimated employers added 136,000 positions in August, instead of 173,000, and 223,000 positions in July, instead of 245,000. The slowed growth raises the question of whether the U.S. Federal Reserve will hike up interest rates as expected by year-end.

Meanwhile, the S&P/TSX Global Mining Index rose 2.1% to 49.15. The S&P/TSX Global Gold Index advanced 1.4% to 128.89, though the spot gold price lost US$7.90 per oz. to finish at US$1,138.40. The S&P/TSX Capped Diversified Metals & Mining Index, however, dipped 0.6% to 373.06. Spot prices for copper and nickel rose, while dipping for lead, and staying relatively flat for zinc and aluminum.

On Sept. 30, Karnalyte Resources clarified a release on the behalf of Canadian billionaire Erwin Singh Braich, regarding a non-binding proposal earlier that month. The proposal shows Braich’s group of companies looks to invest in Karnalyte, which would give Braich most of the fertilizer firm. Karnalyte clarified that the proposal is non-binding and that its board is considering it along with other financing options, including its largest shareholder, Gujarat State Fertilizers and Chemicals Ltd., arranging a potential debt. Karnalyte shares climbed 65% to 94¢.

Brazil-focused MBAC Fertilizer updated its financings, noting it is negotiating with an investment fund in the fertilizer industry. The parties have extended their exclusivity deadline and maturity date of a bridge loan to MBAC from Sept. 30 to Oct. 30. MBAC, which aims to become a significant integrated producer of phosphate fertilizers, rose 60% to 4¢ per share. The company, however, cautions there is no guarantee that a deal will come from these talks.  

Pretium Resources reported a fourth batch of results from its 40,000-metre underground infill program at the Brucejack project’s Valley of the Kings deposit in northern B.C. The results “confirm the style and grade distribution of the gold mineralization in the area currently being tested,” Pretium says. Recent highlights include 74.62 grams gold per tonne over 18 metres, including a half metre of 2,570 grams gold, and 93.49 grams gold over 14 metres, including a half metre of 2,600 grams. (The intercepts do not represent true widths.) Pretium aims to build a high-grade underground mine at Brucejack, with commercial production targeted for 2017. It ended up 17¢ at $7.92 per share.