TSX rises, Aug. 5-9: Wheaton; First Majestic; Pan American; Asanko Gold

The S&P/TSX Composite Index posted a 0.43% gain to 16,341.30. Spot gold finished the trading week at US$1496.20 per oz., up US$56.20 per oz., or 3.9%. The S&P/TSX Global Gold Index gained 6.41% to end at 252.39, while the S&P/TSX Global Base Metals Index lost 5.42% to 94.51, and the S&P/TSX Global Mining Index lost 0.16% to 76.06.

Wheaton Precious Metals rose $2.12 to $36.64 per share. Wheaton announced attributable gold production of 100,577 oz. gold in the second quarter, up 11.3% from the 90,391 oz. achieved in the second quarter of 2018. The increase owed to the San Dimas gold stream effective in May 2018, and the Stillwater precious metals stream effective in July 2018, as well as higher production at Sudbury. Attributable silver production in the three months ended June 30 fell 19.1% year-on-year to 4.83 million oz. silver. The decrease was mainly due to the termination of the San Dimas silver stream in May 2018 and lower production from Penasquito, after an illegal blockade. Cash costs for gold came in at US$420 per oz., up from US$407 per oz. in the year-earlier quarter, while cash costs for silver were US$5.14 per oz., up 13.2% from US$4.54 per oz. in the second quarter of 2018. This year Wheaton expects to produce 385,000 oz. gold, 22.5 million oz. silver and 22,000 oz. palladium for a total of 690,000 equivalent oz. gold.

First Majestic Silver rose $1.55 to $14.16 per share. The company reported silver production in the second quarter increased 25% to 6.41 million equivalent oz. silver, up from the 5.14 million equivalent oz. silver produced in the second quarter of 2018. Cash costs fell 10% to US$6.84 per oz., down from US$7.59 per oz. in the second quarter of 2018, and all-in sustaining costs fell to US$14.76 per oz., down from US$16.43 in the year-earlier quarter. Strong production results were offset by lower silver prices, resulting in a net loss for the quarter of US$12 million on revenues of US$83.7 million.

Pan American Silver’s share price rose $1.31 to $22.59. The company reported production results of 6.5 million oz. silver and 154,600 oz. gold during the second quarter, at all-in sustaining costs of US$10.67 per oz. silver and US$980 per oz. gold. In addition to the gold and silver, Pan American produced 17,400 tonnes zinc, 6,800 tonnes lead and 2,100 tonnes copper. The company lowered its 2019 guidance to between 25.3 million and 26.3 million oz. silver, and between 550,000 and 600,000 oz. gold, after a three-month postponement of commercial production from its Cap-Oeste Sur Este and Joaquin projects, both in Argentina.

Asanko Gold rose 26.2% to $1.35 per share. The company posted record production in the second quarter of 62,067 oz. gold at an all-in sustaining cost of US$1,180 per ounce. The company recorded net income of US$6.1 million, compared to a net loss of US$142.3 million in the second quarter of 2018.


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