TSX down, Aug. 19–23: Seabridge, SSR Mining, Torex, Prophecy

The S&P/TSX Composite Index fell 0.69% to 16,037.58. Spot gold finished the trading week at US$1526.60 per oz., up US$13.80, or 0.91%. The S&P/TSX Global Gold Index gained 4.67% to end at 260.51, while the S&P/TSX Global Base Metals Index lost 2.67% to 88.93, and the S&P/TSX Global Mining Index gained 0.56% to 75.14.

Seabridge Gold rose $2.40 to $20.09 per share. The company reported on Aug. 22 that the 200,000 share options issued to subscribers in connection with its $17-million, private-placement financing have been exercised, yielding additional proceeds of $3.4 million that will be used as general working capital. The company also announced on Aug. 15 that it has started exploration drilling at its wholly owned Snowstorm project in northern Nevada. Seven to 10 structural and stratigraphic targets will be tested in the 7,000-metre drill program. The initial work program could help refine targeting for exploration, including further geophysical surveys and drilling.

SSR Mining rose $1.51 to $22.18 per share. The company announced on Aug. 19 that it had closed a private-placement transaction with SilverCrest Metals in which it bought 780,000 SilverCrest shares at $5.85 per share. SSR Mining now holds 9 million SilverCrest shares, at an average cost of $3.91 per share.

In early August, SSR Mining reported consolidated production in the second quarter of 98,334 equivalent oz. gold at cash costs of US$775 per payable oz. gold sold. It also posted positive income from operations at all three of its mines totalling US$29.8 million, net income of US$12.4 million, and adjusted attributable net income of US$17.8 million, or 15¢ per share.

Torex Gold Resources rose $1.50 to $20.60 per share. The company announced on Aug. 22 that it would hedge 96,000 oz. gold sales over the next year. Torex has set the floor price of the monthly gold collars at US$1,400 per oz., with the ceiling price ranging from US$1,666 per oz. in September 2019 to US$1,768 per oz. in August 2020. “We are currently in a debt-repayment phase, and after this is complete, we will be building cash to fund the construction of Media Luna, and other initiatives,” Fred Stanford, Torex’s president and CEO, said in a press release. “Given these uses for near-term cash flow, it is a prudent business decision to lock in some price protection for our primary product.” The company expects to update the resource estimate for Media Luna before year-end. Media Luna, south of the Balsas River in Mexico, was discovered in March 2012. Torex reiterated its 2019 sales guidance of 430,000 oz. gold.

Prophecy Development rose 56.4% to 31¢ a share. The company announced on Aug. 19 that it has formed two wholly owned subsidiaries in B.C. — Silver Elephant Mining Corp. and Asia Mining Inc. — to “facilitate potential spin-offs” of its Pulacayo-Paca silver mining project in Bolivia, and its Ulaan Ovoo and Chandgana coal mines in Mongolia.