TSX posts gain, Mar. 1-5

The S&P/TSX Composite Index advanced 1.80% to 18,381.00. The S&P/TSX Global Base Metals Index climbed 1.21% to 165.45, and the S&P/TSX Global Mining Index rose 1.16% to 106.23. Spot gold fell US$35.50 per oz. to US$1,700.10 and the S&P/TSX Global Gold Index increased 4.07% to 280.38.

Suncor Energy rose $2.55 to $27.82 per share. The company announced it priced an offering of US$750 million in senior unsecured notes due on March 4 2051 that have a coupon of 3.75%; and priced a $500 million senior unsecured Series 8 Medium term notes due on the same date. The Canadian notes have a coupon of 3.95%. Suncor plans to use the net proceeds to repay commercial paper and for general corporate purposes. It also announced that it has provided an early cancellation notice to its banking partners in relation to $2.8 billion in bi-lateral credit facilities. The credit facilities had a two-year term and were entered into in March and April 2020 to ensure the company had access to financial resources if necessary due to Covid-19. “With an improving commodity price environment, these facilities are no longer required by Suncor,” the company announced on March 1. In addition, Suncor announced that it exercised the early redemption options on its outstanding US$220 million 9.40% senior unsecured notes and $750 million 3.10% medium term notes, both due this year.

Shares of Kirkland Lake Gold rose $1.72 to $43.34. The company announced several appointments to its management team, including the addition of mining executive and former banker Jason Neal as executive vice president. Prior to joining Kirkland Lake, Neal served as president and CEO of TMAC Resources, and before then, spent 21 years at BMO Capital Markets, including eight years as global co-head of its metals and mining group. The gold producer also promoted Natasha Vaz, its senior vice president technical services, technology and innovation, to the position of chief operating officer, and Jennifer Wagner to executive vice president corporate affairs and sustainability. Wagner joined the company in 2015 and most recently was senior vice president, corporate affairs, sustainability and legal counsel.

Eldorado Gold’s shares increased $1.04 to $14.37. The company reported 2020 results with net earnings attributable to shareholders of $104.5 million (61¢ per share), up from $80.6 million (51¢ a share) in 2019. The improvement was primarily the result of higher production and sales volumes combined with a higher average realized gold price, Eldorado said. The company produced 528,874 oz. of gold, up 34% from the 395,331 oz. produced in 2019. Eldorado also reported lower all-in sustaining costs in 2020 of US$921 per oz. gold sold, down from US$1,034 per oz. gold sold in 2019.

Shares of Labrador Iron Ore Royalty gained $1.72 to $38.19. The company reported 2020 results, with revenues of $202.3 million; equity earnings of $126 million; and net income of $227.2 million ($3.55 per share). The company said the strong performance was mainly due to higher iron ore prices from continued demand from China and higher pellets sales. Operating cash flow totaled $175.4 million and the company paid $147.2 million in dividends. Labrador Iron Ore ended 2020 with $106.1 million in cash.


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