TSX returns to a bull market, May 30–June 3

The S&P/TSX Composite Index rose nearly 0.9% to close at 14,226.78, up 20% from its Jan. 20 low, and marking a return to a bull market. The S&P/TSX Global Mining Index jumped 6% to 57.97, while the S&P/TSX Capped Diversified Metals & Mining Index climbed 5.1% to 537.81. The S&P/TSX Global Gold Index surged 12.6% to 230.04. Spot gold added US$30.70 to finish at US$1,243.50 per oz. gold.

The higher gold price helped lift gold companies. Royal Gold advanced US$7.91 to US$79.68 per share. On June 2, the precious metals royalty and streaming firm promoted Mark Isto to vice-president of operations, effective July 1, 2016. Isto worked for Placer Dome, Kinross Gold and First Nickel, before joining Royal Gold as an executive director of project evaluation in 2015. A day later, the company held a webcast for its analyst and investor day. The presentation highlighted Royal Gold’s long-life assets, including Pueblo Viejo in the Dominican Republic, Mount Milligan in B.C. and Andacollo in Chile.

Detour Gold shares climbed $4.54 to $29.69 per share, despite a negative outcome regarding an ongoing criminal investigation. On May 31, the company said it was charged the day earlier, along with three site employees, with offences under the Occupational Health and Safety Act relating to the death that occurred at the Detour Lake mine on June 3, 2015. The miner believes all the charges related to the fatality have been served, and will review the charges before commenting further.

First Quantum Minerals saw heavy trading after selling the Kevitsa nickel-copper-platinum group metals mine in Finland to Boliden. The company received US$712 million in cash from the sale, excluding working capital adjustments. The transaction closed on June 1. First Quantum shares climbed 23¢ to $9.15 on 28.6 million shares traded.

Cameco fell 9¢ to $15.17 per share, despite announcing that the Canadian Nuclear Safety Commission has approved the expansion of Areva Resources’ McClean Lake mill in northern Saskatchewan. Cameco uses that mill to toll-treat ore from its nearby Cigar Lake uranium mine. With the approval, Areva can boost the mill’s annual production capacity to 24 million lb. uranium oxide (U₃O₈) from 13 million lb. This will enable Cigar Lake to reach its 2016 production target of 16 million lb. U₃O₈, and full production capacity of 18 million lb. in 2017. Cameco owns 50% of Cigar Lake, while Areva, Idemitsu Canada Resources and Tepco Resources hold the rest.

Champion Iron gained 36.1% to finish at 28¢ per share. On June 2, the company said it is optimistic that it could lower the operating costs at the recently acquired Bloom Lake mine in Quebec. However, it has yet to release details on how it intends to increase recoveries and annual production to lower costs. Champion acquired the iron ore mine on April 11.