TSX climbs higher, Oct. 19-22

The Toronto stock market ended higher as investors took in prime minister-designate Justin Trudeau’s majority win in the federal election. Canada’s new prime minister promises to invest heavily in infrastructure, among other areas, to revive the economy. As part of the plan, Trudeau will run up to a $10-billion annual budget deficit for three years. 

The S&P/TSX Composite Index rose 49.14 points, or 0.4%, to close at 13,878.11. The S&P/TSX Capped Diversified Metals & Mining Index, however, slipped 1.9% to 460.62, while the S&P/TSX Global Mining Index fell 2.4% to 53.14. The S&P/TSX Global Gold Index retreated 1.8% to 142.91, as the spot gold price gave back US$13.90 per oz. to close at US$1,165.90. 

Teck Resources reported a third-quarter loss of $2.1 billion, or $3.73 per share, compared to a profit of $84 million, or 14¢ per share, in the same period last year. The loss included a non-cash after-tax writedown of $2.2 billion to reflect lower commodity prices. The writedown included $1.5 billion for its steel-making coal assets, $400 million on the Fort Hills oilsands project and $300 million on its coal assets. Excluding the writedown, Teck’s adjusted profit was $29 million, or 5¢ per share, which beat analyst expectations, but fell below last year’s $159 million, or 28¢ per share. As of Oct. 21, its cash balance was $1.8 billion, which covers its $1.5-billion share of costs to complete developing Fort Hills. The miner added 9¢ per share to close at $8.79, as 19.3 million shares changed hands. 

Detour Gold reported initial holes from its 30,000-metre mid-year program at Lower Detour, 6 km south of its producing Detour Lake gold mine. Highlights from the first 34 holes totalling 14,800 metres included 22.4 metres of 6.46 grams gold per tonne, and 30.5 metres of 5.07 grams gold. (Both results are uncut.) So far, Lower Detour mineralization extends from surface to 550 metres deep, over a 450-metre strike length. The orebody is open at depth and down-plunge to the east. Once the company receives assays from the eastern and deeper holes, it will consider underground definition drilling, as well as surface infill drilling the upper part of the deposit with closer spacing. Detour gained $1.03 to close at $16.50 per share. 

Wallbridge Mining kicked off the first drilling phase on its Parkin polymetallic properties in Sudbury, Ont., after announcing an $11-million funding agreement with Lonmin Plc. Lonmin may earn a 50% vested initial interest in the four Parkin properties by funding $11 million in exploration and development costs by Sept. 30, 2019. Upon vesting, Lomin can earn another 15% in each property by committing to fund through a feasibility study. The exploration program, budgeted at $2 million, will include testing the potential extension of the historic near-surface resource, as well as investigating a possible bulk-sample open pit. Wallbridge gained 16.6% to finish at 4¢ per share.