Having lost 14% of its value last year, the Toronto Stock Exchange 300 index began the slow road to recovery with a gain of 163.11 points, or 2.2%, over the Dec. 21-Jan. 1 report period. The benchmark finished the week at 7,688.41.
Gold began the new year on a sour note, slipping 80 over the holidays to settle at a London morning fix of US$278.10 per oz. on the morning of Jan. 2. Silver, platinum and palladium all fared better.
Barrick Gold, which announced a possible alliance with South African major AngloGold, dropped 55 to $25.45. The companies, the world’s two largest producers, intend to co-operate wherever their operations overlap, in order to cut costs. The proposed agreement, in turn, enabled AngloGold to up its bid for Normandy Mining, bringing it closer to a rival offer by American giant Newmont Mining. Franco-Nevada Mining, which owns one-fifth of the Australian producer and plans to merge with Newmont, rose a quarter to $23.55.
Among other gold producers, Placer Dome sank 30 to $17.40, Kinross Gold climbed 3 to $1.19, Meridian Gold fell 15 to $16.35, and Agnico-Eagle Mines flopped 38 to $15.70. Faring better was Goldcorp, which slipped just 4 to $19.30 as it intersected the deepest mineralization yet found at its Red Lake mine in northern Ontario.
As a group, the golds recoiled 96.2 points to finish the report period at 5,07.01.
Except for copper, which eased back a penny, base metal prices were higher on London markets. Nickel rose 13 to a morning fix of US$2.65 per lb. while lead and zinc inched ahead a penny to US23 and US35 per lb., respectively.
Teck Cominco was the most active base metal issue, with 2.2 million of its B series shares changing hands to push the price up 27 to $12.72. Mid-tier copper miner First Quantum Minerals came in a close second, climbing 15 to $3 on a volume of 2.1 million shares.
The biggest gainer was Inco, which jumped $1.04 to $27.05. Also making gains were: Noranda, up 45 at $15, Falconbridge, up 34 at $16.09, and Sherritt International, up 4 at $4.08.
Inmet Mining ascended 22 to $3.15 as it bowed out of a joint venture in central Newfoundland. The deal included the Victoria Mine, Sutherlands Pond and Hungry Hill base metal projects.
Junior Pure Gold Minerals was the most active issue overall, rising 8 to 21 on a volume of 7.4 million shares. The junior raised $750,000 in two arm’s-length private placements that saw 7.5 million flow-through shares printed. Proceeds are earmarked for projects in Nunavut, the Northwest Territories and Alberta, where Pure Gold is exploring for diamonds with Ashton Mining of Canada.
Fort Knox Gold remained unchanged at $1.60 as it announced the completion of a $8-million equity financing. However, the funds are being held in escrow until the junior negotiates an option agreement with Inco concerning five of the major’s properties in the Sudbury basin.
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