Stocks rose slightly over the Oct. 3- 7 trading period as the Organization of Petroleum Exporting Countries and 10 other large crude oil producers such as Russia (OPEC+) agreed to limit output, helping energy and gold company shares. Stock markets continued to show volatility while digesting central banks' drive for higher interest rates to quell inflation while the United States dollar eased.
The S&P/TSX Composite Index gained 138.91 points or 0.8% to 18,583.13.?EUR?The S&P/TSX Global Mining Index increased 2.1 points or 2.3% to 93.43, and the S&P/TSX Global Base Metals Index gained 5.14 points or 3.4% to 155.7. The S&P/TSX Global Gold Index added 1.32 points or 0.5% to 243.12, and spot gold ended the week at US$24.40 per oz. higher, or 1.5%, at US$1,696.15 per ounce.
Suncor Energy, the Calgary-based producer of oil from the Alberta oilsands, shot up 15.8% to $45.04 after OPEC+ agreed to slash production by 2 million barrels a day starting in November. The cartel's cut comes as energy prices are surging in Europe and developing countries, while economists debate how badly a likely recession will bite.?EUR??EUR?Also, Suncor said Oct. 5 it's selling its wind and solar assets to concentrate its environmental efforts on areas complementary to its core business such as lower emission plants and carbon capture technology. ?EUR?
Gold miners Barrick Gold and Kinross Gold shares saw high trading volumes, but lost ground (13 ? and 6 ? per share, respectively).
Developer Augusta Gold, on the other hand, rose by 16.9% to end the week at $1.59. The company aims to start production at its fully permitted, heap-leach Reward project in Nevada, in late 2023.
Copper Mountain Mining also rose by 28 ? or 18.2% to $1.82, after announcing plans to expand its mine in southern British Columbia and increase its reserve estimates. The company intends to increase production by 65,000 tonnes a day in 2028 from 45,000 tonnes and lengthen the Copper Mountain mine's life to 32 years. As electrification continues apace in automobiles, renewable energy and consumer products, copper is forecast to remain in high demand.
On the losing side, Lithium Americas saw the biggest value decline of the week, retreating $3.73 to $32.52 per share. On Oct. 7, the lithium developer announced a court date for a legal challenge to its Thacker Pass lithium clay project in Nevada is set for early January. The projects approvals, granted under the previous administration of Donald Trump, have been appealed by a coalition including local Indigenous communities, a local rancher and environmental organizations. The company also holds 44.8% of the Cauchari-Olaroz lithium brine project in Argentina.