Canadian markets close lower over Oct. 31 to Nov. 4 trading week

The Oct. 31 to Nov. 4 trading week saw the S&P/TSX Composite Index close 21.4 points or 0.1% lower, at 19,449.81. The S&P/TSX Global Mining Index lost 4.3 points or 4.6% to 95.88 and the S&P/TSX Global Base Metals Index fell 12.7 points or 8% to 170.3. The S&P/TSX Global Gold Index fell by 3.5 points or 1.4% to 239, and spot gold ended the week US$26.4 per oz. or 1.6% higher, at US$1,674.40 per ounce.  

Leading the charge this week in terms of value gained, First Quantum Minerals added $4.60 to close at $29.30. First Quantum on Oct. 26 reported that in the third quarter, headline earnings fell 72% quarter-on-quarter from US$337 million in the second quarter to US$96 million, while copper C1 cash costs increased by 8¢ per lb. to US$1.82 per lb. The company cited a declining copper price, cost inflation, and challenged performance from its Kansanshi copper mine in northwestern Zambia as factors pressuring its margins downwards. Total copper output for the three months was at 194,974 tonnes, up 2,306 tonnes from the prior period. The increase was mainly attributable to Sentinel, also in Zambia, which achieved a record output of 64,120 tonnes of copper, up 22% from the June quarter. However, challenges at Kansanshi prompted First Quantum to lower its guidance for 2022. 

Hudbay Minerals was the week’s top gainer in percentage terms, adding 28.4% to close at $6.82. On Nov. 2, the company reported it had swung to a quarterly headline loss of US5¢ per share from nil per share a year earlier. The company produced 24,498 tonnes of copper during the September quarter at an 11% improved consolidated cash cost per lb. of copper produced, net of byproduct credits, of US58¢ per pound. The company is realizing benefits from recent brownfield growth investments, including the successful ramp-up of the high-grade Pampacancha satellite deposit in Peru and higher throughput and gold recoveries at its New Britannia mill in Manitoba. The company is also progressing on the prefeasibility study for the first phase of its Copper World Complex in Arizona.  

This week’s most active issue was Barrick Gold which saw 56.1 million shares change hands before closing $1.69 lower on Nov. 4 at $19.13 per share. It reported on Nov. 3 a sharp drop in third-quarter earnings as lower production and higher costs weighed on its September-quarter financial results. The Toronto-headquartered major reported headline earnings of US$224 million, compared with $419 million in the previous and corresponding quarters. Adjusted net earnings per share fell to US13¢ apiece from US24¢ per share a year earlier, missing average analyst forecasts of US15¢ per share. Barrick said lower realized gold and copper prices, lower gold sales volume, and higher gold cost of sales per ounce weighed on quarterly performance.