Base Metals

Copper Investing

The first full week of September saw the precious metals rally, while the base metals sector felt broad declines.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) was in the green on Friday (September 11) after spending the start of the four day week at a low point.

After opening on Tuesday (September 8) at 16,064.48, the index trended higher before ending at 16,222.46. Canada’s top index has gained 44 percent since the March selloff drove it to an eight year low.

The first full week of September saw the precious metals rally, while the base metals felt broad declines.

Last week’s five TSX-listed mining stocks that saw the biggest gains are as follows:

Here’s a look at those companies and the factors that moved their share prices last week.

1. Copper Mountain Mining

Copper Mountain Mining operates its flagship namesake copper project in British Columbia. According to the company, the Copper Mountain mine currently produces approximately 90 million pounds of copper equivalent annually. The firm is also developing the Eva copper project in Queensland, Australia.

Last Tuesday, Copper Mountain released positive results from a drill program conducted on its Canadian property. The new holes were drilled to test the depth of the Ingerbelle copper-gold pit at the Copper Mountain mine. The announcement notes that almost 40 percent of the reserve value at Ingerbelle is comprised of precious metals.

Company shares climbed 22 percent for the week, ending the session at C$1.04.

2. Karora Resources

Based in Australia, Karora Resources is focused on optimizing gold production at its Beta Hunt gold and Higginsville operations.

September has been a busy month for the precious metals company. Early in the month, Karora closed a royalty reduction agreement with Maverix Metals (TSX:MMX,NYSEAMERICAN:MMX). The agreement reduced Maverix’s royalty on the Beta Hunt mine from 7.5 percent to 4.75 percent, effective July 1, 2020.

Shares of Karora were up 14.9 percent Friday (September 11), trading for C$3.95.

3. Kerr Mines

Precious metals company Kerr Mines is currently advancing its Copperstone gold mine project in Arizona.

In early August, the gold company closed a C$5 million bought deal financing, and has since released a drilling and project update. With positive drill results in hand, Kerr Mines now plans to advance into the second phase of its resource expansion at Copperstone.

The company’s shares were up 7.1 percent by Friday, trading for C$0.15.

4. Forsys Metals

Focused on uranium production, Forsys Metals owns the Norasa project in Namibia. The complex includes the fully permitted Valencia uranium project, as well as the Namibplaas project.

The miner has not released any company news recently; however, its shares may be moving higher as the uranium spot price continues to hold above US$30 a pound.

Forsys was up 6.1 percent last week, trading at C$0.17.

5. Questerre Energy

International energy explorer Questerre Energy is currently developing several non-conventional oil and gas projects around Canada and in the Kingdom of Jordan.

The oil and gas developer has not released any news since its Q2 results were published in mid-August. At the time, CEO Michael Binnion addressed the impact pandemic closures have had on the company.

“We responded quickly to the impacts of the COVID-19 pandemic and the ensuing global shutdown during the second quarter,” he said, noting that the company has reduced its overhead and operating costs. “With cost reductions of approximately C$3/bbl, we can now operate at a lower breakeven price.”

On Friday, shares of Questerre Energy had edged higher by 4.5 percent to sit at C$0.11.

Data for 5 Top Weekly TSX Stocks articles is retrieved each Friday at 10:30 a.m. PST using TradingView’s stock screener. Only companies with market capitalizations greater than C$50 million prior to the week’s gains are included. Companies within the non-energy minerals and energy minerals are considered.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Kerr Mines is a client of the Investing News Network. This article is not paid-for content.


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