Toronto Stock Exchange (October 01, 2007)

The S&P-TSX Composite Index rose 148.42 points to 13,958.28 over the Sept. 18-25 trading period. The Global Gold Index gained 12.28 points to 306.96 while the price of gold reached US$737 per oz. on Sept. 21 — its highest level in the last 27 years. The yellow metal gained US$11 overall to finish the week at US$730 per oz. With base metals also on the rise, the capped Metals and Mining Index climbed 66.11 points to 871.41.

Yamana Gold was the most actively traded stock. The company closed 9 lower at $12.10 per share as it finally made a deal with Meridian Gold, which had resisted a hostile takeover bid for months. The final agreement valued Meridian at $3.55 billion in cash and stock. Meridian shares saw a 98 boost to $33.57. Northern Orion Resources, which is also part of the deal, making it a 3-way merger, rose 15 to $6.45 per share.

A new reserve estimate for its Langlois mine, north of Val d’Or, Que., put Breakwater Resources on the most active list, closing the period up 20 at $2.70. The new estimate puts reserves at Langlois at nearly 4 million tonnes grading 9.63% zinc, 0.72% copper, 46.91 grams silver per tonne and 0.09 gram gold. Measured and indicated resources are up to 6.1 million tonnes averaging 10.41% zinc, 0.72% copper, 51.04 grams silver per tonne and 0.09 gram gold.

First Quantum Minerals saw the biggest value change, rising $9.13 to $94.74 per share. The company was named in a U.K. paper as a potential bidder for Katanga Mining.

Potash Corp. of Saskatchewan was second, adding $5.71 to reach $100.78 per share. Potash was followed by Agrium, another Saskatchewan potash producer, which saw its shares climb $3.49 to $23.23 per share. An RBC analyst told clients to expect the stock of potash producers to rise alongside potash prices. He predicted prices will rise by about US$50 in Brazil to US$360 per tonne and about U$30 in Southeast Asia to the same price.

The biggest losers for the week were Agnico-Eagle Mines, Alcan and NovaGold Resources, with losses minimal compared to the gains. Agnico-Eagle was down $1.48 to $48.99, Alcan lost 67 to close at $99.84 and NovaGold fell 64 to $16.

On a percentage basis, Diamond Fields International shares closed 36% higher at 17 apiece, Pacific North West Capital grew by 35% to 50 per share, and Canadian Zinc rose 26.7% to 90 per share.

St Andrew Goldfields stock declined 24% over the period, closing at 60, and Constellation Copper shed 21% of its share price, also settling at 60. Birch Mountain Resources fell 19.7% to $1.38 as it drew another $4 million from its $15.5-million loan facility, bringing the total drawn to $12.5 million for its Muskeg Valley limestone quarry operations. The company is completing a review to evaluate ways to increase shareholder value, including a joint venture, merger, sale of the company, or other corporate transaction.

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