TSX treads water as metals end mixed

The Toronto Stock Exchange’s diversified metals and mining index tacked on 3.58 points to end the April 19-25 report period at 297.81 points, despite a mixed performance by the base metals themselves. The golds slipped 2.49 points to 186.4, as the price of the yellow metal faltered but managed to end US$5.45 per oz. better at US$432.90 per oz. on April. 25. Overall, the S&P TSX composite index edged 0.43 of a point higher to 9,416.13.

Noranda was the nation’s busiest mining stock, with more than 15 million shares finding their way 77 higher to $23.86. The company’s first-quarter earnings rang in at US$176 million, 16% better than a year earlier. Noranda’s friendly bid for Falconbridge expires on May 5.

Falco climbed 93 to $42.03 on the strength of first-quarter earnings of US$221 million, up from US$184 million a year earlier. The company recently inked a deal to take a 50% stake in the Kabanga nickel deposit in northwestern Tanzania from Barrick Gold for US$65 million in cash and work commitments.

Elsewhere in Tanzania, Barrick’s 70%-owned Tulawaka gold mine recently attained commerical production. Minires du Nord owns the remainder. Barrick ended a dime poorer at $28.03; Minires finished a penny better at 56.

Kinross Gold was a close second to Noranda in volume, with nearly 15 million shares climbing a nickel to make $6.73. Kinross’s operational results (excluding earnings data) were due on April 28. The company is revising its 2003 and 2004 financial statements to reflect an independent evaluation of 2003 transactions. A group of 10 banks has upped Kinross’s revolving credit facility by US$95 million to US$295 million.

Bronze in the most-actives went to Hudbay Minerals, which slipped 14 to settle at $3. Anglo American recently cleared its vault of Hudbay notes, selling nearly 5.8 million shares and 86.7 million warrants. The securities were part of the price OntZinc paid to buy Anglo subsidiary Hudson Bay Mining & Smelting Co. late last year; OntZinc later amalgamated to form Hudbay.

YGC Resources led the percentage gainers with a 30, or 79%, increase to 68. The company recently launched a $5-million drilling program on its Ketza River property in the Yukon. The property is home to a formerly producing mine that churned out 100,033 oz. gold between 1988 and 1990.

HMZ Metals soared 9, or 37.5%, to 33. The shares began trading on the TSX on April 6 and have been on the rebound since sliding shortly after the initial public offering of 38.8 million units at 40 apiece. The Kerry D. Smith-led company holds interests in a copper smelter, a zinc-tin-lead-antimony mine, and a custom concentrator — all in China. It also has two letters of intent on gold and base metal properties there.

Heading the other way was Contact Diamond, which plummeted 13, or 21%, to 50. Drilling to test 10 geophysical targets on the RAM project, north of Yellowknife, N.W.T., failed to cut any kimberlite.

Corriente Resources finished 40, or 19.5%, lower at $1.65, after the recent ousting of Ecuador’s president, Lucio Gutierrez. The company owns the Mirador copper-gold project in that country’s southeastern region. A feasibility study has proposed a 25,000-tonne-per-day open-pit mine.