TSX Rallies; Barrick Porgera Mine Restarts; Pan American- Yamana Deal Complete

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By Ketki Saxena

Investing.com – The TSX tracked Wall Street higher this morning, after US PCE data indicated cooling inflation, tempering worries of further aggressive interest rate hikes from the US Federal Reserve.

The commodity heavy Canadian index was also supported by gains in crude, as supply concerns remained at the forefront due to reduced output at several oilfields in the Kurdistan region of Iraq. The production reductions follow a halt to the north export pipeline.

The Biggest Stories on Bay Street

Pan American Silver Corp (TSX:PAAS) announced it has completed its previously announced acquisition Yamana Gold (TSX:YRI). As a result of the arrangement, four producing mines in Latin America will be added to Pan American's portfolio. Upon closing of the Arrangement, existing Pan American shareholders own approximately 58% of the Pan American Shares and former Yamana Shareholders own approximately 42% of the Pan American Shares.

Barrick Gold (NYSE:GOLD) Corp. is set to restart operations at one of its biggest gold mines: the Porgera mine in Papua New Guinea, which had been suspended since 2020. As per a deal inked with the government of the Pacific island, the mine will reopen at “the earliest opportunity,” said Barrick. An exact date has not been disclosed, but a project team is moving forward to acquire a special mining lease and fulfill other conditions to restart the operation. The mine is expected to produce 700,000 ounces a year, representing 17% of Barrick’s overall gold production from last year.

Canadian Industry Minister François-Philippe Champagne has just approved Rogers Communications Inc (TSX:RCIa).’s $20-billion takeover of rival telecom Shaw Communications (TSX:SJRb), ending a two-year saga. The sale is expected to close on April 7. The deal has faced significant opposition from regulators alleging the deal will materially reduce competition in Canadian telecoms, and increase prices for consumers. Champagne, while approving the deal, has also laid out stringent conditions for the companies, with fines of up to $1 billion for violations.

Canadian Stocks Moving Markets Today

Top Gainers:

• BlackBerry (TSX:BB)
• Lightspeed (TSX:LSPD)
• Osisko Mining (TSX:OSK)

Top Losers:

• OceanaGold Corporation (TSX:OGC)
• Equinox Gold (TSX:EQX)
• Wesdome Gold Mines Ltd. (TSX:WDO)

In Canadian Economics

Statistics Canada reported March 31 that Canadian GDP grew 0.5% in January, after a 0.1% drop recorded in December. As per StatCan’s “flash estimate,” GDP increased an additional 0.3% in February, on a preliminary basis. January’s robust growth, plus the preliminary data for February shows GDP tracking at almost 3% for Q1 2023 - well above the 0.5% quarterly growth expected by the Bank of Canada.