Economy 13-11-2023 14:07 7 Views

5 Top Weekly TSX Stocks: Oil and Gas Companies Rise on Q3 Results

The S&P/TSX Composite Index (INDEXTSI:OSPTX) declined 0.99 percent last week to end at 19,653.06.

In a mid-week speech, Carolyn Rogers, senior deputy governor of the Bank of Canada, indicated that a quick return to low interest rates is unlikely. ‘it’s not hard to see a world where interest rates are persistently higher than what people have grown used to, she said at an event held in Vancouver on Thursday (November 9).

However, Rogers also pointed out that the country’s rate hikes still need time to work themselves through the economy.

Against that backdrop, some resource juniors listed on the TSX saw their share prices go up last week. Here’s a look at the five biggest gainers and the factors that moved their share prices during the period.

1. Sierra Metals (TSX:SMT)

Company Profile

Weekly gain: 50 percent; market cap: C$108.64 million; current share price: C$0.66

With a focus on Latin America, Sierra Metals is a mid-tier copper miner that produces base and precious metals by-products. The company has three mines that are in commercial production: the Yauricocha mine in Peru, and the Bolivar and Cusi mines in Mexico. It also has brownfield exploration opportunities in both of those countries.

There was no fresh news from Sierra last week, but its share price rose 50 percent to reach C$0.66.

2. Condor Energies (TSX:CDR)

Company Profile

Weekly gain: 14.04 percent; market cap: C$73.44 million; current share price: C$1.30

Condor Energies bills itself as an ‘energy transition developer,’ and is undertaking various activities in Central Asia and Turkey. The company has producing gas assets and is looking to build and operate Central Asia’s first liquefied natural gas facility; it also has initiatives geared at gas field redevelopment and developing and producing lithium brine.

Last Thursday, Condor shared its results for the third quarter, outlining several highlights. Those include the receipt of a 100 percent working interest in a contiguous 37,300 hectare lithium brine mining license in Kazakhstan for a period of six years. The company’s share price jumped 14.04 percent last week to close at C$1.30.

3. Jaguar Mining (TSX:JAG)

Company Profile

Weekly gain: 13.15 percent; market cap: C$103.28 million; current share price: C$1.42

Jaguar Mining describes itself as a gold exploration, development and mining company. Its efforts are centered on Brazil’s Iron Quadrangle, where it has three gold-mining complexes: Turmalina, Caeté (including the Pilar and Roça Grande mines) and Paciência. Paciência is currently on care and maintenance, as is Roça Grande.

The company released its Q3 financial and operating results last Thursday, reporting net income of US$3.8 million, down from US$6.5 million in the year-ago period. Consolidated gold production was 17,316 ounces, lower than the 21,161 ounces mined in the third quarter of 2022. Cost-reduction efforts are in place at both of Jaguar’s mines.

The release also discusses the purchase of properties from IAMGOLD (TSX:IMG,NYSE:IAG). ‘It was a busy quarter for us on the corporate side as we successfully completed the acquisition of IAMGOLD’s Brazilian assets (the Pitangui project and the remaining interest in the Acurui project) and announced an agreement with a subsidiary of AngloGold Ashanti Limited to exchange a non-cash royalty payable with an equal and offsetting royalty receivable,’ said President and CEO Vern Baker.

Jaguar’s share price rose 13.15 percent last week to close at C$1.42.

4. Forza Petroleum (TSX:FORZ)

Company Profile

Weekly gain: 9.09 percent; market cap: C$72.04 million; current share price: C$0.12

Forza Petroleum is an oil explorer, developer and producer with a 65 percent working interest in the Hawler license, located in Iraq’s Kurdistan region. The company is also the operator of Hawler, where discoveries have been made in four areas.

Last Tuesday (November 7), Forza put out its financial and operational results for Q3. Back in March, the company received word that the Kurdistan Oil Export Pipeline had been shut down by its operator due to an arbitration decision from the International Chamber of Commerce. Forza ceased production at Hawler in response, and is still waiting for the pipeline to reopen; there is currently no timeline for when this may happen. In the meantime, Forza CEO Shane Cloninger said the company has partially restarted production and is pursuing local oil sales.

Shares of Forza rose 9.09 percent last week to close at C$0.12.

5. Petrus Resources (TSX:PRQ)

Company Profile

Weekly gain: 8.26 percent; market cap: C$162.06 million; current share price: C$1.31

Oil and natural gas company Petrus Resources is focused on Alberta, where it has low-risk development assets in the Canadian province’s Ferrier, North Ferrier and Thorsby areas. Ferrier is its core place of operation.

On Wednesday (November 8), Petrus released its Q3 financial and operating results, reporting a 49 percent increase in production compared to the same period last year. It also declared its first dividend, a special cash dividend of C$0.03 per common share, and announced the implementation of a regular dividend of $0.01 per common share per month.

The company’s share price rose 8.26 percent on the news to reach C$1.31.

FAQs for TSX stocks

How big is the TSX?

The TSX is Canada’s biggest stock exchange, and as of September 8, 2023, it had 1,789 listed stocks for a total market value of more than C$3.79 trillion. The TSX is often ranked as one of the 10 largest stock exchanges in the world.

Why do companies list on the TSX?

Listing on one of the world’s largest stock exchanges provides companies with greater market exposure, the ability to raise capital and an opportunity to build a strong financial reputation. In its technical guide to listing, the TSX states the exchange “offers companies a dynamic market to raise capital, enhanced liquidity, specialized indices, visibility and analyst coverage.’

What sectors are included in the S&P/TSX Composite Index?

The S&P/TSX Composite Index tracks more than 230 constituents across a wide range of sectors, of which the top five by weight are: financials (30 percent), energy (18 percent), industrials (13.5 percent), materials (11.9 percent) and information technology (8 percent).

What was the highest point for the TSX?

The TSX hit a record high of 22,213.07 points in April 2022. While the exchange was at 20,074.65 points as of September 8, 2023, there are high expectations that the TSX could move past the 22,000 level by the end of 2023 to set new record highs.

Data for 5 Top Weekly TSX Performers articles is retrieved each Friday after market close 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.

Article by Charlotte McLeod; FAQs by Melissa Pistilli.

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

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

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