Resource stocks have dragged Toronto's main index into negative territory on Monday morning. The market is on pace for a second straight negative close and is giving back some of last week's sharp gains.
The S&P/TSX Composite Index has declined 100.05 or 1.1% to move at 8,965.71. The drop took the index away from the three-month closing low from last week.
Gold stocks are down 4.5% and the Materials Index is down 3.4% as the precious metal has continued to move lower. Seagold (SEA.TO) has dropped 8.4%, Iamgold (IMG.TO) is down 8.1% and New Gold (NGD.TO) is down 8%.
Royal Gold (RGL.TO) has dropped 6.7% after the company said it agreed with a subsidiary of Teck Cominco Ltd. (TCK-B.TO) to acquire the gold production at the Andacollo mine located in Chile. The purchase price consists of $100 million in cash and about 4.5 million shares of common stock.
Separately, Royal Gold announced that it intends to offer 6.5 million shares of its common stock to fund the transaction.
Pan American Silver Corp. (PAA.TO) has dropped 4.5% after the company said Friday night that Union workers at its Morococha mine in Peru initiated a strike yesterday after the company and Union representatives failed to reach an agreement with respect to an increase in base pay and benefits.
Mining stocks have dropped 1.85% as First-Quantum (FM.TO) is down 3.3% and Inmet (IMN.TO) has declined 2.4%.
Energy stocks are down 1.4% with crude oil down $1.36 at $51.15 per barrel. Suncor (SU.TO) has dropped 1.7%, Vermillion (VET.UN.TO) is down 1.6% and Paramount Resources (POU.TO) is down 1.2%.
Mega Brands (MB.TO) has plunged 20.75% after the toymaker reported a net loss of US$323.3 million or US$8.83 per share for the fourth quarter, compared to a net loss of US$66.2 million or US$1.81 per share in the year-ago quarter.
Akela Pharma (AKL.TO) has plummeted 11.75% after the company reported a net loss for the fourth quarter of US$13.6 million or US$0.63 per share, in comparison a loss of US$8.9 million or US$0.75 per share in the same quarter a year-ago.
WestJet (WJA.TO) is down 1.6% after the company announced its March load factor was 81.9%, down from 86.6% in the prior year. Revenue passenger miles increased 0.6% year over year to 1.25 billion from 1.24 billion a year ago. Capacity, measured in available seat miles, grew 6.3% to 1.52 billion from 1.43 billion in the same period last year.
On the economic front, Statistics Canada reported Canadian buildings permits dropped 15.9% in February. A much more modest decline of 2.8% was predicted by economists, compared to a 6% slide in January.
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