Profit-takers step in

The Toronto Stock Exchange moved lower over the report period April 23-29, with profit-taking marking the end of a rally that lasted more than three weeks. The TSX Composite index fell 37.53 points to close at 6,545.39.

The golds, which had had nothing like a rally, plunged further: the TSX Gold index lost 10.36 points over the same period to close at 151.26 points — a loss of 6.4% in value terms. Gold bullion prices had moved sideways throughout the week, trading in the low US$330-per-oz. range (though they jumped on April 30 to finish at US$336 per oz., up US$2.20).

There was heavy trading in all the golds: Barrick Gold was the volume leader, with 8.1 million shares traded in anticipation of an earnings release after the close on April 28. Barrick was off a buck at $21.48, after announcing earnings of US$29 million on revenue of US$459 million; comparable figures for the first quarter of 2002 were US$46 million in earnings and US$478 million in revenue.

Placer Dome also released first-quarter financials, earning US$64 million on revenue of US$409 million, a jump from last year’s first-quarter profit of US$37 million, made on US$303 million in revenue. Improved numbers didn’t help the stock, which fell 82 to $13.97.

The mid-tier golds generally saw market losses nearing 10% of value; Agnico-Eagle Mines was off $1.49 at $14.35, Glamis Gold fell $1.25 to $15, and Goldcorp dropped $1.26 to $14.59. Meridian Gold did comparatively well, falling 76 to $14.54.

Two of the index’s smaller members saw heavy trading; Bema Gold was down 15 at $1.52 with 5.7 million shares moving, and Eldorado Gold, which booked a US$2.6-million profit in the first quarter, was a dime lower at $1.90 on a volume of 6.3 million shares.

Off the gold index, silver producer Wheaton River Minerals was down 17 to $1.20 with 10.7 million shares traded. Another heavily traded small producer was McWatters Mining, which shed 1 to finish at 18 on a volume of 9.5 million shares.

The TSX Metals & Mining index, which had been left behind for much of the broader market’s rise, still shared in the decline, falling 1.67 points to 119.09. That happened in spite of a broad advance by the base metals on the London Metal Exchange, with nickel up 5 to US$3.63 per lb., and the other major industrial metals all rising a penny per pound — copper to US73, zinc to US35, and lead to US20.

The most active of the base metal stocks was Teck Cominco‘s B-series, which fell 52 to $10.20 on a volume of 6.6 million shares. Inco was close behind in the liquidity race, falling $1.48 to $26.65 on 6.1 million shares. Inco warrants were down $1.35 at $6.40.

Falconbridge did better, climbing 35 to $16.25, while Cameco registered a big gain, picking up $2.70 to finish the period at $37.10. It announced that its 31.6% interest in Ontario electricity generator Bruce Power would deliver $33 million in after-tax earnings in the first quarter.

Aur Resources was off 18 at $3.57. The company announced a loss of US$300,000 for the first quarter, the result of US$4.3 million taken as expenses as a result of its US$125-million note issue.