TSX up, Jan. 18-22

The S&P/TSX Composite Index fell 0.35% to 17,845.91 during the Jan. 18-22 trading week. The S&P/TSX Global Mining Index rose 1% to 105.65, and the S&P/TSX Global Base Metals Index climbed 0.19% to 149.70. Spot gold jumped US$26.90 per oz., or 1.47%, to US$1,855.50 per oz., and the S&P/TSX Global Gold Index rose by 1.34% to 310.90.

First Majestic Silver advanced $2.73 to $17.80 per share. The company reported total 2020 production of 11.6 million oz. of silver and 100,081 oz. of gold from its three operating mines in Mexico: San Dimas, Santa Elena, and La Encantada. Silver production came in at the top-end of the company’s 2020 guidance of 11-11.7 million oz., whereas gold was below its guidance of 106,000-112,000 ounces. Silver production from La Encantada (3.5 million ounces) marked a six-year high due to improvements in recoveries and underground production from the caving areas. In 2021, the company forecasts production of 12.5-13.9 million oz. of silver and 100,000-112,000 oz. of gold. It ended the year with record cash and equivalents of US$239 million.

Shares of Pan American Silver increased $1.06 to $38.42 per share. The company reported total 2020 production of 17.3 million silver ounces. It also produced 522,400 oz. of gold, 40,200 tonnes of zinc, 15,700 tonnes of lead and 5,200 tonnes of copper. Silver, gold, and lead production underperformed the company’s 2020 guidance of 18-19 million oz. of silver, 525,000-575,000 oz. of gold and 17,000-18,000 tonnes of lead, but copper production exceeded guidance of 4,300-4,900 tonnes. Pan American expects 2021 silver production will range between 22.5 million and 24 million oz. and gold production between 605,000-655,000 ounces. “We are expecting a 35% increase in silver production relative to 2020 and record gold production in 2021, despite our assumption that Covid-19 will continue to have an impact on operations,” said Michael Steinmann, the company’s president and CEO. 

B2Gold rose 2¢ to $6.43 per share. The company posted its twelfth consecutive year of record gold production in 2020, churning out 1.04 million oz. gold from its three operating mines: Fekola in Mali, Masbate in the Philippines, and Otjikoto in Namibia. The total includes B2Gold’s share of production from Calibre Mining of 45,479 oz. of gold. B2Gold owns a 34% stake in Calibre. Management has set 2021 production guidance at 970,000-1.03 million oz. gold and is expected to be heavily weighted towards the second half of the year due to significant planned waste stripping at both Fekola and Otjikoto in the first half of 2021. Average all-in sustaining costs in 2021 for the three mines are forecast to be US$870-US$910 per oz., higher than the company’s average in 2020 of US$780-US$820 per ounce.