Toronto stocks succumbed to a late bout of profit taking to end the Dec. 6-12 report period just 90.48 points higher at 11,099.26. The golds performed similarly, but finished 3.7% better at 236.99; the underlying commodity flirted with quarter-century highs. The diversified brethren slipped nearly 1% to 380.59 amid higher metal prices across the board.
Kinross Gold was the busiest of Canada’s major gold producers, with more than 24.1 million shares climbing 54 to $9.48. Kinross agreed to swap its Aquarius gold project in Ontario for a 14% interest in St Andrew Goldfields. Probable reserves there total around 1 million oz. St Andrew finished unchanged at 12.
Mid-tier producer Eldorado Gold was next, surrendering earlier gains to end 8 cheaper at $4.78 on just shy of 20 million shares. Likewise, Bema Gold returned most of its earlier 28 gain to end a penny better at $3.36 on a handful fewer shares. Bema recently signed US$425 million worth of loan agreements to build its 75%-owned Kupol gold mine in Russia’s Far East. Kupol is expected to produce 552,000 oz. gold and 5.86 million oz. silver annually by mid-2008.
Canada’s two biggest bullion producers called a truce, with Placer Dome waiving its poison pill plan after Barrick Gold agreed to extend its takeover bid deadline by four weeks to Jan. 16. Placer has advised shareholders to reject Barrick’s offer. Placer advanced $1.15 to $26.40, while Barrick gained $1.06 to $31.78.
Some impressive infill drilling results from the Neves-Corvo copper mine in Portugal helped EuroZinc Mining climb 4 to $1.11 on 19.2 million shares. Included is an 18-metre interval running 17.2% copper, 13.6% zinc, and 0.4% lead. Denver-based Resource Capital Fund III recently acquired 2.1 million EuroZinc shares at 60 apiece. RCF Management holds a 33% stake in EuroZinc on a fully diluted basis.
Nickel miner LionOre Mining International was the only other base metal producer to finish among the nation’s top 10 most-traded miners. LionOre and equal partner African Rainbow Minerals are considering an interim production plan designed to reduce the initial capital costs of a planned expansion at the Nkomati nickel mine in South Africa. The issue dropped a dime to $4.90.
Topping the percentage gainers’ list were the warrants of Agnico-Eagle Mines and European Minerals, which rose 62% to $3.40 and 54% to 30, respectively. Agnico’s common shares gained $2.43, or 13.3% to $20.67, while European Minerals jumped 23, or 31% to 97. European Minerals has hedged 443,000 oz. gold at US$574.25 apiece under a financing agreement for its Varvarinskoye copper-gold mine project in northern Kazakhstan.
A decision on copper hedging will come next year.
Shares in Hunter-Dickinson-led Great Basin Gold jumped 40, or 33.3%, to $1.60. Ferdi Dippenaar has replaced Ronald Thiessen as president and CEO. Dippenaar departs Harmony Gold, where he was widely recognized as CEO Bernard Swanepoel’s right-hand man. Harmony is South Africa’s third-largest gold producer. Thiessen will remain on as co-chairman.
On the minus side, shares in marine diamond miner Diamond Fields International sank 4, or 19% to a 52-week low of 17 after the company said it would weigh anchor and move its head office from Vancouver to Cape Town, South Africa. Cape Town-based director of operations Roger Daniel has replaced Gregg Sedun as president and chief executive.
Be the first to comment on "Investors cash in"