Gold dips, producers trip, yet again

No thanks to resource issues, the S&P-TSX composite index slipped 35.47 points over the Jan. 21-27 report period, finishing the week at 8,588.15.

Precious metals had a generally bad week, and so it was for the gold and precious metals sub-group, which fell 5.04 points to 207.05. Gold was off US$2.60 at a morning fix of US$405.70 per oz.; silver, US15, at US$6.24 per oz.; and platinum, US$4, at US$854 per oz.

The exception to the rule was palladium, which rose US$17 to US$230 per oz., and that augured well for Canada’s only primary producer of the metal. North American Palladium gained 90 to finish the period at $11.80, just shy of its 52-week high of $12.54.

As for Canada’s big three gold producers, all fell in value: Barrick Gold declined 37 to $26.78, Placer Dome dipped 31 to $21.81, and Kinross Gold fell 28 to $9.38. Even the mighty Goldcorp could not polish up gold’s tarnish, slipping 39 to $17.95.

Southwestern Resources, one of two in the sub-group that don’t actually produce, continued to take a pounding, slumping $3.25 to finish the period at $32.85. At the period’s end, the explorer said it had paid US$1.7 million to convince a Chinese-based company to cease mining activities at the Boka project in China, thus enabling Southwestern to accelerate its own drilling program.

Bucking the downward trend was Meridian Gold, which climbed 16 to $17.04. The gains occurred despite an absence of new reports.

Nickel producers were down across the board, as physical traders knocked US16 off the metal’s spot price, fixing it at US$6.64 per lb. on the morning of Jan. 27. Not surprisingly, Inco took it hardest, stumbling $1.99 to $49.41, followed by Sherritt International, which fell back 19 to $7.25. Falconbridge slipped 21 to end the period at $33.09.

First Quantum Minerals touched a new 52-week high before slipping back to $15.85, for a gain of $1.35 on the period. The copper miner is riding a wave caused by its discovery of significant copper-cobalt mineralization in Zambia, its main base of operations.

Overall, the diversified metals and mining sub-group plummeted 9.43 points to 219.10. The biggest loser of the bunch was Cameco, which slipped $4.75. The downfall coincides with the release of disappointing fourth-quarter results.

Tahera took top spot in the activity market, with 52 million shares changing hands to push the stock up two pennies. Not long ago, the junior diamond developer announced the completion of a public review of its stated plans for the Jericho project in northern Ontario. Tahera finished the period at 40.

Mazarin was the highest percentage gainer, rising 50% to 12 as 5 million shares changed hands. At Dec. 30, 2003, the company and its asbestos assets were split off from Sequoia Minerals.