TSX falls during Apr. 4-8 trading week

Over the Apr. 4-8 trading period, the S&P/TSX Composite Index fell 211.25 points or 0.96% to 21,874.35. The S&P/TSX Global Mining Index increased 0.6 points or 0.46% to 129.58 and the S&P/TSX Global Base Metals Index fell 9.25 points or 4.1% to 221.74. The S&P/TSX Global Gold Index rose 8.03 points or 2.2% to 363.36 and spot gold ended the week US$11.1 per oz. higher, or 0.57%, at US$1,941.40 per ounce. 

Shares of Ascot Resources fell 15.2% to 95¢. The company said it couldn’t satisfy the conditions required for it to receive the US$80 million funding it needed to develop its Premier gold project in B.C’s Golden Triangle. In December 2020, the company secured a senior credit facility with Sprott Private Resource Lending. After drawing down an initial US$20-million tranche, Ascot was required to satisfy various conditions before accessing the remaining US$60M. However, the company has been unable to reach an agreement with Sprott on the satisfaction of the drawdown conditions. “Therefore, the initial US$20M drawdown will remain outstanding and Ascot will pursue alternative financing options,” the company said in a press release. Ascott said there may be a delay to the company’s target of beginning production in the first quarter of 2023. 

Shares of Suncor rose 25¢ to $41.27. The company announced that it was strengthening its focus on hydrogen and renewable fuels to accelerate progress towards its goal of reaching net zero carbon emissions by 2050, and therefore, plans to divest its wind and solar assets. “While Suncor is in the fortunate position of being long on opportunities, we are adjusting our portfolio for fit and focus,” said Mark Little, Suncor president and CEO. “By doing so, we use our strengths, competitive advantages and resources to drive shareholder returns and value over the long term and help us meet our emissions reduction targets.” Moving forward, Suncor says it will continue to participate in various aspects of the electricity value chain, including producing power through its integrated cogeneration operations, through power marketing and trading, by providing customers with EV charging, and potentially procuring renewable power through power purchase agreements. Suncor will focus on replacing coke-fired boilers at its oilsands mining base plant with lower-emission cogeneration units. It will also accelerate commercial-scale deployment of carbon capture technology.  

Shares of Endeavour Mining rose by $1.06 to $32.67. The company said that it would soon launch the construction of its Sabodala-Massawa gold expansion in Senegal, supported by a recently completed feasibility study. The expansion project is expected to yield an incremental production of 1.4 million oz. gold at an all-in sustaining cost of US$576 per ounce. At a 5% discount rate, the project would generate a post-tax net present value of $861 million and an internal rate of return of 72% at a gold price of US$1,700 per ounce.