Fording courts suitors to thwart Sherritt takeover

The Toronto Stock Exchange Composite Index slipped 70.37 points to end the Nov. 6-12 report period at 6,329.27.

The TSE’s gold index was up 5.39 points, partly on the back of a US$5.70-gain in the price of the yellow metal. On the morning of Nov. 13, gold was fixed at US$323.20 per oz.

Riding in gold’s wake, Placer Dome advanced 12 to $15.62 on a volume of 39 million shares, making it the most active resource issue. The Canadian heavyweight secured more than 90% of Australian miner AurionGold, so it can now force the remaining holdouts to fork over their shares. The takeover also pushes Placer’s 2003 production target to 3.5 million oz., or 40% higher than before.

Mid-tier producer Glamis Gold climbed 89 to $13.99 as it announced a three-fold increase in year-over-year quarterly earnings and a substantial increase in resources at its Marlin project in Guatemala. Earnings came in at US$2.4 million (or 2 a share), while revenue rose to US$19.8 million from US$15.8 million.

Also up was High River Gold Mines, which added a quarter to close at $1.80 after word got out that Harmony Gold Mining has set its sights on the junior. The South African-based miner plans to buy a 21% stake from Jipangu, a Japanese gold investment company that owns 32.5% of High River.

Bema Gold was among the losers, falling 8 to $1.62 on news of having closed a $16-million financing. The bought deal includes more than 3 million units priced at $1.60 and an option for an additional 6.8 million units priced the same. The deal follows Bema’s announcement that it intends to merge with EAGC Ventures and seek a 75% stake in the high-grade Kupol gold-silver project in northeastern Russia.

Coal miner Fording led the non-precious metals group, rising 60 to $32 as more than 4.3 million shares changed hands. Fording said it will release confidential financial and operating data to any party interested in rivaling a joint, hostile takeover bid from Sherritt International and the Ontario Teacher’s Pension Plan. Sherritt remained unchanged at $4.21.

Another standout was Ivanhoe Mines, which rose 11 to $2.97 as nearly 3.4 million shares changed hands. Ivanhoe recently expanded copper-rich mineralization at its Oyu Tolgoi gold-copper project in southern Mongolia.

Denver-based Apollo Gold, which was formed in mid-summer through the merger of International Pursuit and Nevoro Gold, made a rare appearance on the top 10 list early in the period. The junior finished at $2.75, for a gain of 25, on a volume of more than 2 million shares.

Tahera rose 7 to 19 as 18.6 million shares changed hands, making it the second-most active issue in the resource sector. The junior diamond explorer released an optimistic quarterly report, in which it assures shareholders that Rio Tinto and BHP Billiton remain firmly committed to the company’s projects in nothern Canada.