While gold producers enjoyed the limelight in early December, it was the base metal miners that powered forward during the 4-day period ended Dec. 22 as the S&P/TSX Metals and Mining index rocketed 12.96 points to a new all-time high of 224.18.
More than any other group, the nickel miners surged as prices hit US$6.79 per lb., or US$15,000 per tonne: Inco led the greatest value charge, rising $4.99 to $51.39; Falconbridge advanced $2.27 to $30.08; LionOre Mining International popped up 48 to $7.98; Sherritt International leapt 33 to $7.20; and Dynatec rose 13 to $1.53. Only FNX Mining went the other way, slipping 15 to $8.60.
Uranium giant and electricity producer Cameco rose $1.25 to a new 6-year high of $71.20 as its 31.6%-owned Bruce Power joint venture in Ontario declared commercial production at unit 4 of the Bruce A nuclear power station. Bruce Power will start recording revenue and expenses, related to unit 4, in the income statement effective Nov. 1, 2003.
Leading the percentage gainers, Vancouver-based junior Formation Capital soared 23, or 62%, to 60 on furious trading. Earlier in the month, the company closed a $10-million financing of units priced at 25 apiece. A single unit comprises a share and half a warrant, with a full warrant being exercisable into a share for 50 within two years. Proceeds are being funneled into the company’s projects in Idaho, which include the high-grade, primary-cobalt Idaho Cobalt project, the Big Creek hydrometallurgical complex, and an associated silver refinery.
Another strong gainer was Montreal-based niobium junior Niocan, which tacked on 54 to close at $1.74. A month ago, a Quebec court rejected an appeal of the Quebec Administrative Tribunal’s decision supporting Niocan’s Oka niobium project, near Montreal. The appeal had been brought forward by the Union of Agricultural Producers for Outaouais-Laurentides.
The gold sector was more sedate, with the S&P/TSX Gold index slipping 0.95 of a point to 218.88 as spot gold held the line above US$407 per oz.
Gold and silver major Wheaton River Minerals continued its multi-week streak as the most active mining stock, dropping 15 to $3.43.
Gold explorer Moydow Mines International took the number-one spot as percentage loser, but that was only a technicality owing to a $1.25 payout to shareholders, which comprised $1.15 as return on capital and 10 as a special dividend. The funds came from the sale to Newmont Mining earlier this year of Moydow’s half-stake in the Ntotoroso project in Ghana.
Aussie diamond explorer Caldera Resources shot up 6 to 20 on heavy volume as it reported microdiamonds in material collected from its 100%-owned Runton diamond project in the Pilbabra region of Western Australia.
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