TSX loses ground, Sept. 30-Oct. 4: Detour, Torex, Continental, Nutrien

The S&P/TSX Composite Index fell 1.5% to close at 16,449.35. Spot gold finished the trading week at US$1,504 per oz., up US$8.10 per ounce (0.54%). The S&P/TSX Global Gold Index rose 1.7% to end at 245.80, the S&P/TSX Global Base Metals Index advanced 4.4% to 98.08, and the Global Mining Index fell 1% to 74.62.

Shares of Detour Gold went up 68¢ (3.4%) to $20.89. The company  announced on Sept. 25 a US$400-million, senior-secured revolving credit facility that will replace its previous US$500-million, senior-secured credit facility. The new credit facility has a four-year term, maturing in September 2023. It also comes with an accordion option that allows Detour to increase it by another $100 million to a total of $500 million. The company said it plans to “fully pay down its indebtedness under the new credit facility in the coming months.” Detour Gold  estimates this will translate into interest savings of US$9 million a year and available liquidity of US$370 million. The previous facility consisted of a US$200-million term loan maturing in July 2020, and a US$300-million revolving credit facility maturing in July 2022.

Torex Gold Resources gained 59¢ (3.4%) to $18.05. The company reported third-quarter production hit a record 138,100 oz. gold, surpassing the second quarter’s record production by 21%. The company sold 132,500 oz. gold during the quarter at an average realized price of US$1,475 per ounce. Torex said its total cash balance in the quarter rose US$52 million, and total debt dropped more than US$36 million. The company says it is on track to achieve its full-year guidance of 430,000 oz. gold sold. In the first nine months of 2019, Torex sold 322,400 oz. gold at an average realized price of US$1,376 per ounce.

Continental Gold rose 32¢ (8.3%) to $4.17 per share. The company announced that project construction of its wholly owned flagship Buritica project, 91 km northwest of Medellin in northwestern Antioquia, Colombia, is advancing more rapidly than planned. As a result, the company says mechanical completion should come in the first quarter of 2020, sooner than its original guidance of the first half of next year. Ramp-up to commercial production is expected to take six to nine months from the date mechanical completion has been achieved.

Nutrien’s shares fell 96¢ (1.5%) to $64.48. The company announced on Sept. 30 that it had closed its acquisition of Ruralco Holdings, a diversified agricultural company in Australia. Nutrien said it expects its annual earnings before interest, tax, depreciation and amortization will surpass US$230 million in 2020, of which US$70 million is expected to come from the Ruralco acquisition. Nutrien also said the business combination would enhance the delivery of products and services to Australian farmers, and help them better compete in the global market.


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