Broad market, resource stocks march to US war beat

As war in Iraq drew nearer over the March 12-18 report period, financial speculators at home pushed the S&P-TSX composite index ever higher. After all was said and done, the bulls had raised the benchmark 147.91 points to 6,438.61.

Things were not so good for gold, which sank US$10 over the five trading days to settle at a London morning fix of US$339 per oz. on March 19 — its lowest since mid-December 2002. Still, Canadian producers of the yellow metal gained ground, and the S&P-TSX gold sub-group ended up gaining 7.83 points, or 5.1% of its value, to finish at 160.02.

Kinross Gold was the most active of the Big Three, rising 59 to $8.99 on a volume of 13.1 million shares. Next came Placer Dome, up 95 to $14.15 on a volume of 8.2 million shares, and Barrick Gold, up $1.35 to $22.25 on a volume of 5.7 million shares.

The mid-tier darlings also rose: Agnico-Eagle Mines leaped $1.16 to $18.98; Meridian Gold jumped 95 to $16.80; and Goldcorp climbed 82 to $15.64. Wheaton River Minerals, which joined the trio in terms of production parity by completing the acquisition of the Peaks gold mine in Australia and a 25%-stake in the Bajo de Alumbrera gold-copper mine in Argentina, eased ahead 5 to $1.20. Wheaton River also was the second-most active issue, with 13.3 million of its shares having changed hands.

Nickel was the biggest loser among base metals, retreating 3 to a morning fix of US$3.77 per lb. on March 19. Among the rest, copper clawed back a penny, lead stayed put, and zinc slipped a penny. The mixed performance had little effect on producers: the S&P-TSE diversified metals and mining index climbed 6.71 points, or 5.4%, to end the period at 129.84.

Inco was the volume leader, rising 87 to $30.27 as 3.5 million shares changed hands. Also in the million-shares-plus crowd were: Falconbridge, up 65 to $17.4; Noranda, up 77 to $13.10; Teck Cominco‘s B-series, up $1.01 to $11.80; and LionOre Mining, unchanged at $5.55. LionOre announced fourth-quarter earnings of $3.6 million and 2002 profits of $2.7 million.

Junior TVI Pacific took the most-active prize in the sector, rising 1 to 10 on a volume of 19.3 million shares. However, most of that activity reflects the conversion of 14.3 million warrants by insiders and the concurrent sale of the resulting shares to Haywood Securities. The sale is part of a larger financing agreement between the companies, in which TVI expects to reap enough proceeds to repay debt and fund its Shuikoushan gold project in China.

DiamondWorks was the biggest percentage gainer, rising 62, or 75.61%, to $1.44. The increase came on light trading, and trading of the company’s shares was temporarily halted on March 19 as a result. The ban was lifted after DiamondWorks chalked up the activity to its upcoming release of fourth-quarter and year-end financials. The company added that a preliminary inspection shows a quarterly improvement in earnings.