TSX posts small gains, Dec. 18-22

The Toronto stock market ended in positive territory, with the S&P/TSX Composite Index gaining 0.5% to close at 13,082.86. The S&P/TSX Global Mining Index climbed 4.5% to 43.70, while the S&P/TSX Capped Diversified Metals & Mining Index jumped 14.8% to 344.99. The S&P/TSX Global Gold Index rose 4.4% to 130.88, as the spot gold price added 2% to finish at US$1,072.30 per oz. The February contract for benchmark crude oil fell 1.8% to US$36.40 a barrel, while the loonie stayed relatively flat at US71.72¢.

Dominion Diamond advanced $2.75 per share to $14.01, after coming under pressure by activist shareholders. The group, led by K2 & Associates Investment Management, said in an open letter that the Arctic miner’s weak share price resulted from “misguided policies and missed opportunities.” They have asked for a meeting before the new year with the company’s independent directors to discuss changes, including a strategic review. The group collectively owns a 5.4% stake in the diamond miner. The company responded in a news release that it “looks forward to an open dialogue” with the group.

New Millennium Iron shares rose 50% to 8¢ after it responded to claims made by a group of dissident shareholders who have requested a special shareholders meeting to replace all of the company’s independent directors. New Millennium says that the past two years have been hard for the iron ore industry, with price plunging on weak Chinese demand, while  supply from Australia and Brazil flooded the market. Despite this, it has transitioned from an explorer to a developer, while preserving capital, adding it has enough financial flexibility to make it through at least 2018. New Millennium has appointed three directors to help develop its taconite properties. It has also formed a special committee that will examine the dissent shareholders’ claims and make any recommendations if necessary. The company’s special meeting of shareholders is set for mid-March 2016.

Western Copper and Gold rose 21.5% to 40¢ per share, after announcing that it has submitted the second supplementary information report for its Casino copper-gold project to the Yukon environmental and socio-economic board. Including the most recent filing, the company’s has submitted over 14,000 pages of information over the past three years of engagement with regulatory agencies and governments. It hopes that the latest report will kick off the assessment’s screening phase.

Cameco announced on Dec. 17 that it has temporarily restricted underground mining at the Rabbit Lake uranium operation in Saskatchewan. After reopening an inactive area of the Eagle Point mine, it discovered a fall of rock in a tunnel, but no groundwater inflow to the mine. As a precaution, it has suspended production from Eagle Point until it finishes a review. The halt should not affect Rabbit Lake’s annual production. Cameco climbed 84¢ to end at $17.09 per share.