Copper Prices Up, Stocks Follow


The S&P/TSX Composite Index (INDEXTSI:OSPTX) was trading at 19,991.88 early last Friday (August 12) morning. It continued moving up as the day continued, closing at 20,175.71.

The index was higher last week on the back of a rally in oil prices, which in turn boosted energy stocks.

Looking over to metals prices, gold was set for a fourth straight weekly gain as the US dollar retreated.

“Inflation easing a little has aided gold’s rally to US$1,800 (per ounce). But risk assets were quickly preferred and gold’s rally stalled. If risk appetite fades over the next couple of weeks, that could support a move above $1,800,” OANDA analyst Craig Erlam told Reuters.

Copper prices were on the rise too as data showed increased Chinese imports and as fears over further US Federal Reserve interest rate hikes eased.

Last week, a number of companies saw their share prices increase, in particular in the base metals sector. The five TSX-listed mining stocks that saw the biggest gains are as follows:

  • Hudbay Minerals (TSX:HBM)
  • Ero Copper (TSX:ERO)
  • Capstone Copper (TSX:CS)
  • Touchstone Exploration (TSX:TXP)
  • Condor Gold (TSX:COG)

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

1. Hudbay Minerals

Hudbay Minerals is a diversified miner primarily producing copper concentrate and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in Canada and Peru; the company also has copper projects located in the US.

Last Monday (August 8), the company published its Q2 results, with production meeting expectations. Hudbay Minerals saw its share price increase 34.15 percent to end last week at C$6.01.

2. Ero Copper

Ero Copper’s primary asset is a 99.6 percent interest in the Brazilian copper-mining company Mineração Caraíba, which is the 100 percent owner of the company’s Caraíba operations. Caraíba includes the Pilar and Vermelhos underground mines, the Surubim open-pit mine and the Tucumã project.

The company did not release any news last week, but during the five day period, Ero Copper’s share price jumped 33.15 percent to end at C$14.38.

3. Capstone Copper

Capstone Copper is a base metals-focused company that operates the Pinto Valley copper mine in Arizona, US; the Cozamin copper-silver mine in Zacatecas, Mexico; and the Mantos Blancos copper-silver mine in Chile’s Antofagasta region. It also owns 70 percent of the Mantoverde copper-gold mine, located in the Atacama region of Chile.

In addition, the company owns the fully permitted Santo Domingo copper-gold project in the Atacama, as well as a portfolio of exploration properties in the Americas.

Last Monday, the company released its Q2 results, posting net income of US$92 million. Capstone’s share price increased 31.18 percent to trade at C$3.45 by the end of the week.

4. Touchstone Exploration

Calgary-based Touchstone Exploration is an upstream oil and gas company focused in the Republic of Trinidad and Tobago, where it has been producing since 2010.

Last Thursday (August 11), Touchstone published its second quarter financial and operating results, showing it achieved a quarterly average crude oil production volume of 1,420 barrels per day. Last week, the company saw its share price increase 27.78 percent to hit C$1.38 by the end of the trading week.

5. Condor Gold

The last company making the list this week is Condor Gold. With a focus on Nicaragua, Condor Gold has a number of projects in Central America. Its flagship project is La India.

Despite not releasing any news last week, Condor Gold’s share price jumped 24.24 percent to end at C$0.41.

Data for 5 Top Weekly TSX Performers articles is retrieved each Friday at 10:30 a.m. EST 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, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.


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