TSX drifts downward over the Nov. 11-18 trading week

Stocks fell slightly over the Nov. 11-18 trading period as energy stocks suffered from European oil and natural gas inventories approaching capacity and tech companies like Amazon announced layoffs, while better-than-expected retail sales and some corporate earnings helped temper losses. 

The S&P/TSX Composite Index shed 130.6 points or 0.6% to 19,980.91. The S&P/TSX Global Mining Index decreased 1.52 points or 1.5% to 102.54, and the S&P/TSX Global Base Metals Index lost 7.98 points or 4.4% to 175.29. The S&P/TSX Global Gold Index fell 6.28 points or 2.4% to 260.39, and spot gold ended the week at US$7.75 per oz. or 0.4% lower at US$1,759.35 per ounce.

Potash fertilizer producer Verde Agritech was the second-largest loser in percentage terms over the week on the TSX, falling by 22% to close on Friday at $5.71 after reporting third-quarter earnings.

“It was a pity that we could not fulfil all the orders placed in our books, having had to turn down so many orders because of the operational constraints then present,” Verde’s founder, president and chief executive officer Cristiano Veloso said Nov. 14 in a news release accompanying the results. 

The Brazil-focused company said last month it had solved water issues during the construction of access roads to its Plant 2. The plant achieved its targeted output rate of 1.2 million tonnes per year of the company’s multinutrient potassium products in October. It’s continuing a plan to double Plant 2’s production to 2.4 million tonnes a year. Plant 1 is producing at its capacity of 600,000 tonnes a year.

Verde, which is based in Belo Horizonte, Brazil, said third-quarter net profit more than doubled to $6.46 million compared with $3.18 million in the same period a year ago.

International Tower Hill Mines shares lost 16% after saying in its third-quarter results on Nov. 10 that it “will require significant additional financing to continue its operations” advancing the Livengood gold project in Alaska. 

“There is significant uncertainty that the company will be able to secure any additional financing in the current or future equity markets,” International Tower Hill said. The Vancouver-based company reported US$5.5 million in cash on Sept. 30. 

First Quantum Minerals lost the most by value over the period, dropping $4.05 to $29.51 after saying the government of Panama has set a deadline of Dec. 14 for the company to sign a contract allowing it to continue to run the Cobre Panama copper mine.

Negotiations started more than a year ago. Draft agreements show the miner would start paying the government a 25% corporation tax and between 12% and 16% of its gross profit to replace a 2% revenue royalty. The government has said its revenue should be at least $400 million a year based on copper prices. 

I-80 Gold shares gained 21% to $3.39 after reporting strong drilling results from its Ruby Hill project in northern Nevada. The Reno-based company said on Nov. 14 it had intercepted 10 metres grading 60.2 grams gold per tonne for a grade x width of 602 in diamond drill hole 1RH22-55. I-80 is developing an underground mine at Ruby Hill.