TSX, mining and metal indices see gains during Nov. 28–Dec. 2 trading week

The markets this week saw the TSX rally to its highest closing level in nearly six months on Dec. 1, buoyed by news that U.S. Federal Reserve Chair Jerome Powell could seek smaller interest rate hikes at the Fed’s next meeting on Dec. 13-14. The rally faced resistance by week’s end as high interest rates continue to worry market participants. The Bank of Canada is expected to raise interest rates by 25 basis points to 4% on Dec. 7.   

The S&P/TSX Composite Index nudged up 101.9 points or 0.5% to 20,485.66. The S&P/TSX Global Mining Index climbed 6.61 points or 6.3% to 111.62, and the S&P/TSX Global Base Metals Index increased 12.46 points or 6.9% to 192.45. The S&P/TSX Global Gold Index rose 13.45 points or 5% to 282.75, and spot gold ended the week at US$32.90 per oz. higher, or 1.9%, at US$1,784.75 per ounce.  

Amid a mostly positive week for mining stocks, Ascendant Resources shares saw the greatest percentage gain, jumping by 37% to close the week at 19¢. The junior announced a US$15-million streaming agreement with Sprott Streaming and Royalty Corp. for its Lagoa Salgada VMS project near Lisbon, Portugal. The company will use the proceeds to complete the compliance portion of an ongoing feasibility study for the project and advance permitting activities. The deal will give Sprott 1.75% of all metals from the project at 15% of the market price, rising to 75% after it receives 45,000 gold-equivalent oz. An affiliate of Sprott Streaming issued a US$15-million secured note to facilitate the funding in advance of planned commercial production. 

A 2021 preliminary economic assessment outlined a 14-year project with an initial capital cost of $132.3 million and a post-tax net present value of $246.7 million (8% discount) and an internal rate of return of 54.9%. 

Shares of Horizonte Minerals shot up by 26%, or 43¢, to close at $2.08. On Dec. 1, the company reported it had signed two port contracts to secure access for both the import of raw materials and the eventual export of ferro nickel product from its 100%-owned Araguaia project in northern Brazil. Araguaia is currently under construction with first metal scheduled for early 2024.  

Atalaya Mining shares settled 4% or 20¢ lower at $4.80 on the week after a steep rise that followed a positive update on the firm’s regional exploration program in southern Spain. On Nov. 25, Atalaya reported a potential discovery of polymetallic massive sulphides with a second hole in a previously undrilled area cutting 18.8 metres of 0.84% copper, 0.63% zinc, 0.66% lead and 76.24 grams silver per tonne. 

The discovery is located about 28 km from Atalaya’s Proyecto Riotinto copper operation.