TSX breaks 15,000 level, Aug. 21-25

The S&P/TSX Composite Index broke the 15,000 level, finishing 0.69% higher at 15,055.99. Base metal prices — copper climbed above US$3 per lb. for the first time since 2011, while nickel rose to US$5.18 per lb. — lifted the S&P/TSX Global Mining Index 3.52% to 67.91. Gold rose US$6.60 per oz., or 0.51%, to end at US$1,290.80 per oz., which drove up the S&P/TSX Global Gold Index 1% to 198.82.

Altius Minerals rose 93¢ to $12.25 per share. The company expects royalty revenues of $14.8 million for the three months ended July 31 — a quarterly record that is 10.4% higher than the previous fiscal quarter, and 78% higher than the same fiscal quarter a year ago. Altius said the increase is owed to improving base metal, metallurgical coal and iron ore prices, and slightly higher potash production volumes and prices. The company holds diversified royalties and streams from 15 operating mines in Canada and Brazil.

Shares of Hudbay Minerals rose 92¢ to $10.88. The company has taken a 13.9% stake in junior Mason Resources. Hudbay invested $2.79 million for 10.75 million shares in the company at 26¢ apiece. Mason is focused on copper development in the United States, and owns 100% of the Ann Mason project, its flagship asset in Nevada. Ann Mason is at a preliminary economic assessment level and the company says it is the fourth-largest undeveloped copper porphyry resource in North America. Ann Mason hosts two copper-molybdenum deposits — Ann Mason and Blue Hill — as well as numerous targets. The junior owns 100% of the Lordsburg property, an early-stage, copper-gold porphyry project in New Mexico.

Shares of Tahoe Resources dropped 19%, or $1.38, to $5.58 apiece. The company learned “through unconfirmed sources” that the Guatemalan Constitutional Court would uphold the lower court’s decision to suspend the mining licence of its Escobal mine. Protestors are also blocking the municipal road to the mine site. Tahoe said in a press release that the “financial impacts to the company are under review to assess effects of the suspended operations to longer-term capital and exploration programs,” adding that until operations resume, the company “will not be able to access the full capacity of the revolving-credit facility entered on July 18, 2017, and may continue to be subject to events of default.” It noted, however, that it had ended the second quarter with over $190 million in cash on its balance sheet. In an email to The Northern Miner, president and CEO Ron Clayton confirmed that its La Arena open-pit mine, 480 km northwest of Lima, Peru, “continues to operate with some inconvenience” due to a blockade by locals. “The blockage is in regard to an individual personnel issue, which we don’t normally discuss externally, although I will say there are serious improprieties involved,” he wrote. “We won’t [distribute a] press release unless it becomes financially or otherwise material. I don’t expect that to happen.” TNM


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