Broad market losses weigh down holiday period

Despite a brief surge early on, the Toronto Stock Exchange slipped 61.52 points over the report period Oct. 4-10 to end the Thanksgiving-shortened week at 10,394.33.

Resource stocks were a mixed bag, with the metals and minerals sub-group rising 34.3 points to 3,452.82, and the gold and precious minerals sub-group falling 163.81 points to end at 3,834.53. Fueling the former was Alcan Aluminum, which was pushed $1.45 to $45.75 as investors anxiously awaited the release of third-quarter results.

Gold regained some momentum over the period, rising $1.70 to a London morning fix of US$273 per oz. on Oct. 11. Platinum and palladium fared even better, with the former jumping $11 to US$580 per oz. and the latter climbing $13 to US$738 per oz. Silver remained unchanged at US$4.89 per oz.

Canada’s major producers of the yellow metal all lost ground: Placer Dome plummeted $1.20 to $12.65; Barrick Gold sank 90 to $21.50; and Kinross Gold slipped 1 to 80. Higher throughput rates and grades have prompted Placer to revise its 2000 production forecast for the 60%-owned Cortez mine in Nevada. The mine is now expected to crank out 1 million oz., or 16% more than originally forecast.

Palladium miner North American Palladium filed a final prospectus with Canadian and American security commissions for the issuance of 23 million treasury shares at $9.50 apiece. Proceeds will go towards the repayment of debt and to an expansion program at its Lac des les mine in Ontario. The producer ended the week at $9.50, for a loss of $1.10.

Nickel producers saw 9 clipped off their product, which settled at US$3.64 per lb. on the morning of Oct. 11. Accordingly, Inco fell 20 to $24.25 and Sherritt International dropped 4 to $4.85. Falconbridge, still embroiled in a strike at its Sudbury mine and milling complex, took the hardest hit, falling 40 to $17.05.

Aur Resources dropped 21 to $2.62 as investors continued to digest its recent decision to issue 10 million new shares at $2.90 each. Aur plans to use the proceeds to complete the purchase of a 76.5% interest in the Quebrada Blanca copper mine, in Chile, from Teck and Cominco. Teck B-series rose 40 to $10.65, whereas Cominco sank $1.30 to $19.10.

Junior Nord Pacific rose 25 to 50 on a small volume, only to rise another 15 by presstime. Nord is seeking funds to develop its Tritton copper deposit, which lies nearby the partly owned Girilambone copper mine in New South Wales, Australia.

Cumberland Resources is carrying out a resource calculation after sinking several more holes in the Vault zone at its Meadowbank gold property, in Nunavut. This will bring to five the number of near-surface gold deposits found to date. Cumberland remained unchanged over the report period, though, by presstime, it had risen 5 to $1.05.