The S&P/TSX Composite Index rose 1.27% to 18,990.32 during the March 29-April 1 trading week. The S&P/TSX Global Mining Index climbed 1.34% to 104.02, and the S&P/TSX Global Base Metals Index increased by 0.92% to 157.88. Spot gold fell US$3 per oz., or 0.17%, to US$1,730.30 per oz., and the S&P/TSX Global Gold Index jumped 3.10% to 295.36.
Kirkland Lake Gold rose $2.37 to $44.44 per share. The company reported that it expects annual production at its Detour Lake open-pit mine in northern Ontario to reach 900,000 oz. of gold by 2032, based on the latest life-of-mine plan for the project. The technical report forecasts average production of 680,000-720,000 oz. a year between 2021-2024, increasing to 800,000 oz. in 2025. The forecast does not account for any of the exploration upside realised by Kirkland since it acquired the asset in January 2020, nor does it include the impact of the company’s business improvement initiatives. Starting in January, the report forecast an 18-year mine life, with an additional four years of processing low-grade stockpiles. The economic analysis forecasts an after-tax net present value for the project of US$3.8 billion, based on US$1,500 per oz. of gold and using a 5% discount rate. These numbers incorporate US$3.6 billion in capital outlays over the life of the mine (US$1.5 billion over the next five years) and are based on average all-in sustaining costs of US$821 per oz. (US$775 per oz. between 2021 and 2024).
Shares of Endeavour Mining climbed $1.78 to $26.63. Endeavour completed a previously announced US$200 million investment by La Mancha Holding, a privately held investment company owned by the Sawiris family. Under the deal, Endeavour issued 8.9 million ordinary shares of the company to La Mancha at a price of approximately US$22.45 per share. The investment, announced as part of Endeavour’s acquisition of Teranga Gold on November 16, is being made by La Mancha under its pre-existing anti-dilution right. Following the investment, La Mancha will have increased its stake in the company from 16.72% to 19%.
Calibre Mining increased 20¢ to $1.73 per share. The company announced a 202% increase in probable reserves to 864,000 oz. gold since the end of 2019 and after 2020 depletion at its El Limon and La Libertad mining complexes in Nicaragua. Probable reserves at the El Limon complex increased by 98% to 4 million tonnes grading 4.38 grams gold per tonne for 568,000 contained gold ounces. At the Libertad complex, probable reserves increased from zero to 2 million tonnes grading 4.71 grams gold for 296,000 oz. of gold. “Our investment in exploration in 2020 has resulted in the largest mineral reserve since 2010 and the highest reserve grade of 4.49 grams gold per tonne on record, which provides an excellent foundation for future growth,” Calibre CEO Darren Hall said in a press release.