TSX slips, Jan. 12-16

Despite a large one-day gain as oil prices stabilized, the S&P/TSX Composite Index lost 0.5%, or 75.53 points, to close the trading week at 14,309.41.

Given the slumping base metals prices, particularly with copper touching a five-and-half-year low mid-week, the S&P/TSX Capped Diversified Metals & Mining Index plunged 15.4%, or 105.59 points, to finish at 580.27. Beating the downward trend was the S&P/TSX Global Gold Index, adding 8.7%, or 14.52 points, to close at 180.76, thanks to higher spot gold prices. The yellow metal jumped 4.6%, or US$56.90 per oz., to end the week at US$1,280.30.

First Nickel got a boost after reporting that it would reduce its workforce by 45%, or 109 jobs, as part of a restructuring to bring down costs at its Lockerby nickel-copper underground mine in Sudbury, Ont. The miner expects to lay off 49 employees and 60 contractors. This reduction will allow it to resume ramp development to access ore and begin exploration drilling to find more ore and extend mine life. First Nickel soared 50% to close at 2¢.

International Tower Hill Mines climbed after it released a Jan. 6 update optimizing its large but low grade Livengood gold development project in Alaska. As part of the optimization, the firm has improved the proposed production schedule. Work plans for this year include carrying out more metallurgical tests, confirming the flow sheet and improving the operating costs to revise the capital cost estimate. International Tower Hill has been reviewing Livengood since a 2013 feasibility study showed the US$2.8-billion project needed gold prices of US$1,600 per oz. to be economic. The company moved up 43% to 66¢.

Candente Gold rose after a financing announcement. The junior is issuing 16.6 million shares at 3¢ apiece in a non-brokered private placement to raise gross proceeds of $500,000. The funds will be used to evaluate its El Oro tailings project in Mexico, including metallurgical test work and general corporate purposes. Candente plans to process the tailings to generate short-term cash flow before mining the high-grade project. Shares gained 40% to end at 4¢.

Crocodile Gold finished 2014 strong. It reported record quarterly and full-year gold production. The miner operates three gold mines in Australia, where it produced 58,796 oz. in the fourth quarter, bringing its annual production to 222,312 oz. This 5.5% increase from 2013 is in line with its higher annual production guidance. For 2015, it is guiding gold output of 205,000 to 220,000 oz. at all-in sustaining costs of US$1,020 to US$1,100 per oz. It exited 2014 with US$37 million in cash and gold bullion and US$12.5 million in working capital. Crocodile’s full financials are due on March 16. The miner’s shares  gained 37% to finish at 21¢.