Toronto Stock Exchange (February 17, 1992)

Shares of Joutel Resources made the active list during the week ended Feb. 11, as Aur Resources prepared to start drilling on the company’s copper-zinc property in northwestern Quebec.

Joutel moved up marginally to 14 cents after 1.8 million shares changed hands, making it the fourth largest trader among mining issues this week. With the right to earn 51% in the Joutel project, Aur will test a property that has already yielded 1.6 million tons of grade 2.4% copper and 2.9% zinc. Toronto-based nickel refiner and fertilizer manufacturer Sherritt Gordon also emerged a winner after two large blocks crossed by First Marathon Securities and Gordon Capital pushed the volume to over 2.6 million shares. The stock rose by $1.38 in the report period to $9.13.

A number of analysts including Midland Walwyn’s Oliver Lennox-King are recommending the stock in the belief that management has positioned the company for future profitability once metal prices improve.

Shares of American Barrick Resources also advanced by $1.25 this week to $33.88 as investors look forward to future output from the gold miner’s new Meikle mine in Nevada. Slated to be the Carlin Trend’s first underground producer, Meikle is expected to yield around 400,000 oz. annually starting in 1995.

Other gold sector issues, including Placer Dome, received some help from the gold price which advanced by US$2.25 per oz. in the report period to close today, Feb. 12, at US$357.20 in London.

In the aftermath of its $266-million Mount Milligan writedown, Placer Dome emerged as the volume leader this week after over three million shares changed hands. Today the issue built on recent gains by adding 13 cents to close at $12.63. Corona also added 13 cents today to finish at $5.25, while Hemlo Gold Mines was unchanged at $10.75. Royal Oak Mines was down 5 cents today to $1.90. The issue is being backed by Yorkton Securities’ British analyst Dave Paxton, who expects the newly acquired Hope Brook mine in Newfoundland to boost the company’s annual gold output to 300,000 oz. from 195,000 oz. in 1991.

Shares of Madeleine Mines failed to respond to this week’s US$9.25-per-oz. increase in the price of platinum. Trading at US$367.50, the precious metal is once again selling at a premium to gold. However, after falling 38 cents this week, Madeleine was unchanged today at $3.45.

In the absence of any real action on the base metals front, investors continued to focus on interest rates and the latest round of year-end financial results. Indications that U.S. interest rates are not about to move lower is causing nervousness in the markets and helps to explain today’s 2-point decline in the composite 300 index. The composite 300 closed at 3595.8 after 33.41 million shares valued at $414.7 million changed hands. News that Noranda will continue to pay out its quarterly 25 cents per share dividend, in spite of an annual loss of $133 million, kept the issue on an even keel. Today Noranda advanced by 50 cents to $18.88.

The A and B shares of Vancouver-based Teck Corp. were largely unchanged on news of a 59% drop in annual income compared to 1990. The A shares were stalled at $18.50, while the B shares fell by 25 cents to $18.50. Noranda affiliate Kerr Addison, which reported a 82% drop in 1991 earnings, added 38 cents today to close at $16.38. Shares of Kerr Addison’s 50.4% owned Minnova also advanced by 13 cents to $17.88. Having recently secured three northern base metal properties from Falconbridge and earned 50% of the 1100 massive sulphide lens in Audrey Resources’ Mobrun mine, Minnova reported a net profit of 80 cents in 1991, down from $1.05 in 1990.