Falconbridge sale stirs the TSX

TORONTO STOCK EXCHANGE

Toronto stocks surrendered earlier gains but managed to tack on another 36.33 points to make 10,650.68 points by the end of the Aug. 9-15 report period. Gold did the same, jumping US$10.20 per oz. to a US$443.50-per-oz. afternoon close in London on Aug. 15. The gold index tagged along, ascending 6.38 points to 208.52. The Diversified Metals & Mining Index advanced another 4.4 points to 338.77, with all of the base metals, save for tin, ending higher.

Falconbridge saw 13.9 million shares trade $1.65, or 6%, higher to $29.25. London-listed Xstrata said it would pay around $2 billion for Brascan‘s 19.9% stake in the newly enlarged base metal miner. For its part, Brascan ended 99 better at $46.69. Market watchers don’t expect Xstrata to settle for a minority interest.

Cambior continued 12 lower to $2.45 on a sector-leading volume of about 21 million shares. The company recently reported weaker second quarter earnings and less-than-impressive economics for its Camp Caiman gold project in French Guiana.

Bema Gold grabbed the bronze volume-wise with 13.7 million shares making their way 4 higher to $2.92. A 9% rise in second quarter gold production and accompanying 10% drop in operating cash costs outweighed a second quarter loss of US$12.3 million for investors.

The unveiling of Japan’s Sumitomo as the new 25% partner in the Ambatovy nickel-laterite project in central Madagascar, sent shares in Dynatec 8 higher to $1.47. Sumitomo will chip in a quarter of the project’s cost and cover US$249 million worth of project debt for Dynatec. South African platinum producer Implats is the third member of the Ambatovy triad; the deal will see Dynatec and Implats diluted to 37.5% apiece.

Queenstake Resources was busier than usual, with just shy of 9.4 million shares slipping 2 pennies to 22. The company’s second quarter loss was relatively flat at US$5.6 million as the company suffered declining gold production, labour shortages, flooding and rock stability issues at the Jerritt Canyon complex in Nevada’s Independence Mountains.

North of Jerritt Canyon, some high-grade gold values from drilling on the Crusher target at the Big Springs project powered Gateway Gold to a 30 gain to $1.30. The company is working on a National Instrument 43-101-compliant resource estimate for the project.

Franc-Or Resources was the biggest percentage loser, dropping a nickel, or about 31%, to 11 on no immediate news. RNC Gold finished off 19 at 43 as reduced gold production from the La Libertad and Bonanza mines in Nicaragua more than quartered second quarter earnings to US$529,000.

Heading the other way was Campbell Resources, which rocketed 8, or 160%, to 13 on 8.1 million shares. The company turned a tidy profit of $166,000 during the second quarter, compared with a year-ago net loss of $2.1 million. The turnaround reflects the receipt of the balance owing from the sale of the Bachelor Lake property and an improved performance at the Joe Mann mine.