TSX down, April 29-May 3: Anglo Pacific, TMAC, Centerra, Orocobre

The S&P/TSX Composite Index fell 0.72% to 16,494.43. Spot gold finished the trading week at US$1,278.50 per oz., down US$7.40 per oz., or 0.60%. The S&P/TSX Global Gold Index lost 4.37% to 178.42, the S&P/TSX Global Mining Index dropped 2.78% to 72.88, and the S&P/TSX Global Base Metals Index ended 2.70% lower at 115.92.

Anglo Pacific Group posted the largest jump in value, adding 80¢ per share to finish at $4. The royalty and streaming company focused on base metals, and bulk materials reported total portfolio contributions in the first quarter of £17.5 million (US$22.8), a 7% increase from the £16.4 million recorded in the fourth quarter of 2018, and a 116% increase from the £8.1 million in the first quarter of 2018. The group’s two largest revenue contributors were Kestrel, an underground coal mine in Australia, and Labrador Iron Ore Royalty Corporation (LIORC). LIORC has a 7% gross revenue royalty on the Iron Ore Co. of Canada, which is among the top-five global producers of seaborne iron ore pellets.

Shares of TMAC Resources climbed 73¢ to $4.63. The company, which began producing gold from its Doris mine at Hope Bay in Nunavut in early 2017, reported first-quarter revenue of $67.9 million and low all-in sustaining costs and cash costs of US$992 per oz. and US$658 per ounce. TMAC also recorded net profit of $7.2 million, or 6¢ per share in the three months ended March 31, the company’s first-ever positive earnings. TMAC also amended its credit agreement with Sprott. The amendment eliminates all principal payments for 2019 and for the first quarter of 2020, totalling US$26 million, and reduces and reschedules quarterly principal payments for 2020 to US$2.5 million per quarter, starting on April 1, 2020, with the remaining balance due on Dec. 31, 2020. TMAC also has the option to extend the term by six months to June 30, 2021.

Centerra Gold’s shares rose 42¢ to $7.23. The company reported first-quarter net earnings of US$50.4 million, or US17¢ per common share, on revenues of US$334 million. By contrast, Centerra’s net earnings in the same quarter of 2018 were US$9 million, or US3¢ per share, on revenues of US$235.4 million. All-in sustaining costs per ounce sold came in at US$669. Centerra also repaid US$21 million on its credit facilities. Construction at its Oksut project in Turkey is 49% complete, and is on track to pour first gold in the first quarter of 2020.

Orocobre advanced 23¢ to $3.40 per share. The lithium-focused company shared Reuters articles forecasting shortages of electric vehicle battery minerals and surging net profits at China’s BYD Company. The carmaker posted a 632% increase in net profits during the first quarter of 2019, and the news agency noted that electric car sales in China reached 1.3 million in 2018. Another report said that “Tesla expects global shortages of nickel, copper and other electric-vehicle battery minerals down the road due to underinvestment in the mining sector.”