TSX dips, Sept. 12–16

Canada’s benchmark index weakened, ahead of the U.S. Federal Reserve’s policy-setting meeting, coupled by lower oil prices and negative developments in the banking sector. The S&P/TSX Composite Index retreated 0.6% to 14,450.69 points, marking a second straight weekly drop. The S&P/TSX Global Mining Index lost 0.6% to finish at 234.35, and the S&P/TSX Global Gold Index sagged 0.8% to 61.45.

The spot gold price in New York retreated 1.3% to US$1,310 per ounce. October West Texas Intermediate crude fell 6.2% to US$43.03 per barrel, while November Brent crude lost 4.7% to settle at US$45.77 per barrel, due to an expected jump in oil exports from Libya and Nigeria.

Shares of European and North American banks fell after U.S. authorities ordered Deutsche Bank to pay US$14 billion to settle claims that it missold mortgage-backed securities from 2005 to 2007.

London-based Orsu Metals rose nearly 29% to 5¢, after reporting that it has received consent from Kazakhstan’s Ministry for Investments and Development to sell its indirectly held subsidiary, which holds a 94.75% interest in the Karchiga copper project. Orsu shareholders approved the sale in a meeting held on June 23. The sale still has to meet certain conditions, including the buyer obtaining a requisite antimonopoly approval — or confirmation that the approval is not required — before closing.

Nevada-focused producer Klondex Mines gained 29¢ to close at $7.29 per share. It announced a positive production decision for its True North gold project in Manitoba, along with a reserve and resource update for True North and its two gold-silver mines in Nevada.

True North — previously San Gold’s Rice Lake mine — now has 85,500 oz. gold in reserves from 319,300 tonnes at 8.33 grams gold. Resources, inclusive of reserves, contain 294,000 oz. in measured and indicated, plus 460,000 oz. in inferred. Klondex intends to bring True North into production as its third underground mine.

Total gold-equivalent reserves at its Fire Creek and Midas mines in Nevada increased 5% from last year’s 444,000 to 468,000 ounces. The increase came largely from the gold-equivalent reserves at Midas jumping 41% to 174,000 oz., offsetting the decrease in reserves at Fire Creek.

Gold miner Detour Gold tumbled $1.40 to $27.84 per share, despite staking a project near its flagship Detour Lake gold mine in northeastern Ontario. The Burntbush project contains two groups of contiguous claims, totalling 494 sq. km, on the Casa Berardi trend, 70 km south of the Detour Lake mine. The company says the Burntbush grassroots properties could become an organic growth opportunity. It is preparing a 2017 exploration program, which will include high-resolution airborne and electromagnetic surveys, as well as field mapping and prospecting.


Be the first to comment on "TSX dips, Sept. 12–16"

Leave a comment

Your email address will not be published.


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.