TSX mixed, March 15-19

The S&P/TSX Composite Index fell 0.53% to 18,854 during the Mar. 15-19 trading week. The S&P/TSX Global Mining Index slipped 2.68% to 103.66, and the S&P/TSX Global Base Metals Index dropped 5.98% to 158.12. Spot gold declined by US$17 per oz., or 0.98%, to US$1,744.90 per oz., and the S&P/TSX Global Gold Index rose by 3.07% to 294.71.

Aura Minerals jumped $2.29 to $14.80 per share. The company approved a dividend of US83¢ a share for a total payment of US$60 million. President and CEO Rodrigo Barbosa said the company finished 2020 with US$118 million in cash. Aura Minerals produced 204,000 gold-equivalent ounces last year and in January said it expects 2021 annual production of 225,000 to 290,000 GEOs. The company’s producing assets include the San Andreas gold mine in Honduras, the Ernesto/Pau-a-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico and the Gold Road mine in the U.S. The company also has two gold projects in Brazil (Almas and Matupa) and one gold project in Colombia (Tolda Fria).

Shares of Harte Gold climbed 3¢ to 17¢ per share. Harte Gold announced that New Gold is making a $24.8 million strategic investment in the company, acquiring 155 million common shares at a price of 16¢ per share for a 14.9% stake. In addition, Harte Gold reported that BNP Paribas has agreed to re-schedule about $50 million of the company’s scheduled amortization payments under the company’s senior debt facility. The Sugar zone mine in Ontario’s Hemlo camp entered commercial production in 2019 and produced 25,000 oz. of gold last year. Production guidance for 2021 is set at 60,000-65,000 ounces and Harte Gold said it hopes to expand production to 100,000 oz. of gold a year by 2023.

Denison Mines rose 1¢ to $1.43 per share. The company announced on March 15 that it would raise US$75 million in a bought deal financing — 68.2 million units at $1.10 per unit  — to fund the strategic purchase of about 2.5 million lb. of  U308. The financing closed on March 22, and with the underwriters’ over-allotment of 10.23 million units, the proceeds rose to US$86.27 million. Denison said it wanted to purchase the uranium “as a long-term investment” to support “the potential future financing of the advancement and/or construction” of the company’s flagship 90%-owned Wheeler River uranium project. “The physical uranium holdings that we expect to acquire will represent a sizeable portion of Denison’s share (2018 prefeasibility study) of the expected $290 million of initial capital costs for Wheeler River,” David Cates, Denison’s president and CEO stated in a press release.


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