TSX gains during August 8-12 trading week

Over the Aug. 8-12 trading period, the S&P/ TSX Composite Index gained 559.68 points or 2.85%, to 20,179.81. The S&P/TSX Global Mining Index added 2.33 points or 2.51% to 95.05, and the S&P/TSX Global Base Metals Index advanced by 9.13 points or 5.86% to 164.92. The S&P/TSX Global Gold Index gained 6.94 points or 2.89% to 247.11, and spot gold ended the week at US$18.85 per oz. higher, or 1.06%, at US$1,792.10 per ounce.

The top gainer by value for a second consecutive week was fertilizer giant Nutrien, gaining $9.52 to close at $117. The company has recently reported record interim profits, underpinned by a supply squeeze brought on by Russia’s war in Ukraine. Prices for potash, an essential crop input, have recovered to multi-year highs pushing up Nutrien’s net profit for the June quarter up by 224% year-on-year to US$3.6 billion. The company said its earnings for the second quarter were affected by a non-cash impairment reversal related to its phosphate operations of US$450 million. CEO Ken Seitz told an analyst conference call the ripple effects of the conflict in eastern Europe will continue to drive demand for Nutrien products for many years.

Teck Resources’ class A and B shares also posted substantial gains during the trading week with TECK.A adding $6.65 to close at $46.21 and TECK.B adding $4.89 to close the week at $43.86. Teck recently announced a succession plan for its CEO Don Lindsay, who will step down in late September after 17 years in the role. Lindsay leaves on a high note as the diversified miner benefits from the current commodity boom and posts record earnings. Teck reported net income climbing 546% for the three months through June to $1.7 billion, or $3.07 per share, compared with $260 million, or 48¢ per share, a year earlier. Revenue for the period totalled $5.8 billion, up 126% from $2.6 billion a year ago.

The top gainer in percentage terms was Capstone Copper, which rose 27.2% during the week to close at $3.41 per share. The company reported its second quarter financial results at the start of the trading week, outlining a net income of $92 million, or 11¢ per share, compared with $49.4 million or 12¢ per share a year earlier. On an adjusted basis, the company reported a loss attributable to shareholders of $4.5 million or 1¢ per share. Capstone, which has operations in Arizona, Mexico and Chile, said it saw declining sulphuric acid and diesel prices and benefited from a weaker Chilean peso. However, the company cautioned that it was initiating operating cost reduction reviews at all mine sites.