TSX Venture falls, Oct. 28-Nov 1: Abitibi Royalties, Equinox, New Pacific, O3 Mining

The S&P/TSX Venture Composite Index fell 0.9% to 541.49. Spot gold finished at US$1,514.10, up 0.67%.

Abitibi Royalties shares jumped 68¢, or 4.78%, to $14.90. The company’s board of directors approved a dividend of 3¢ per common share for the fourth quarter, which would amount to 12¢ per common share on an annual basis. The company generated total cash during the third quarter of $988,000, of which $834,000 came from royalties on the open-pit portion contained within its 3% net smelter return at the Canadian Malartic mine, jointly operated by Agnico Eagle Mines and Yamana Gold.

Third-quarter results sent shares of Equinox Gold up 39¢, or 4.8%, to $8.50. The company produced 62,656 oz. gold in the three months ended Sept. 30, at cash costs of US$800 per oz. sold and all-in sustaining costs of US$953 per ounce. Earnings from mine operations reached US$30.8 million, and the company ended the quarter with cash and equivalents of US$45.5 million, up from US$33 million at the end of the second quarter. Highlights during the third quarter included the start of commercial production at the company’s Aurizona gold mine in Brazil, and the first phase of construction at its Castle Mountain project in California. The company expects to pour first gold at Castle Mountain, which will be its third mine, in the third quarter of 2020. In addition, the company repaid a US$20-million, short-term loan to the company’s chairman. The company is maintaining its 2019 production guidance of 200,000 to 235,000 oz. gold at all-in sustaining costs of US$940 to US$990 per oz. gold sold.

New Pacific Metals’ shares rose 27¢, or 6.31%, to $4.55. The company closed a bought-deal financing that raised $17.3 million from selling 4.3 million common shares at $4 per share. The company will use the funds to advance exploration and build an exploration camp at its Silver Sand project in Bolivia. The company also owns the Tagish Lake gold project in the Yukon and the RZY silver-lead-zinc project in China’s Qinghai province.

Shares of O3 Mining climbed 23¢, or 9.78%, to $2.58. The company announced it has entered into agreements with various creditors to settle an $820,279 debt by issuing 211,643 common shares of the company. The financing was done to preserve cash for its operations. The shares are subject to a four-month hold period ending on March 1, 2020. The company owns a portfolio of assets in the James Bay and Chibougamau regions of Quebec, and the Hemlo district in Ontario.