Golds evade Toronto stock slide

The Toronto gold stocks were higher over the report period Aug. 8-14, picking up substantial gains as the rest of the market declined. The Toronto Stock Exchange’s TSE 300 composite index was down 166.71 points, or 2.1% of value, over the week, closing on Aug. 14 at 7,605.52.

The gold and precious minerals index climbed 263.69 points to 4,781.94, for a gain of 5.8% over the five trading days. It followed a good week for gold on the London bullion market, where the yellow metal gained US$9.85 for a fixed price of US$276.35 per oz.

The big boys were immediate beneficiaries: Barrick Gold added $1.87 to close at $24.61, Placer Dome was up $1.24 at $16.74, and Franco-Nevada Mining added 51 to close at $20.40. Even more striking were some of the gains by mid-tier, unhedged producers: Agnico-Eagle Mines was up $1.03 at $14.04, Goldcorp added $1.10 to close at $16.90, and Kinross Gold was 16 higher at $1.37. Meridian Gold, long rumoured to be a takeover target, was up $1.32 at $14.82, and Glamis Gold ran up 42 to finish at $4.90.

Smaller gold producers also looked a little better, with Cambior up 9 at 64 and River Gold closing at $1.02, up 12.

The slide in the white goods seemed to slow a bit, though platinum still fell US$15 to finish the report period at US$427 per oz. Palladium actually gained a buck, being fixed at US$443 on the morning of Aug. 15. North American Palladium was up 40 at $10.25, while, on New York, Stillwater Mining was US$1.18 higher at US$26.64.

The base metals were a little healthier on the London Metal Exchange during the five trading days. Nickel, the biggest gainer, recovered US10 to finish the Wednesday ring at US$2.50 per lb. Copper was up US1 at US66 and even sad-sack zinc added a penny to finish at US38 per lb.

Base metal shares were generally lower during the week, though the metals and minerals sub-index, which lost 54.98 points to close at 3,934.19, did not sink as far as the broad market. Weakness in heavily weighted Alcan, which slipped 75 to $54.25, and Inco, which was off 52 at $24.90, pulled the index down, but most of the larger base metal producers were lower. Noranda fell 66 to $15.24, affiliate Falconbridge was down $1.05 at $15.75, and Teck‘s B-series shares, newly shifted to the TSE’s Integrated Mines group, closed 30 lower at $11.30.

Among the smaller producers, Aur Resources fell 10 to close at $2.61 and LionOre Mining was down a dime at $1.90. Off the index, Inmet Mining picked up 13 to close at $2.50 and Ivanhoe Mines was also 13 better at $1.58.

Miramar Mining recently signed a preliminary agreement with the Federal Department of Indian Affairs and Northern Development whereby it would continue operations at the Giant mine in Yellowknife, N.W.T. The company has discovered a year’s worth of ore that can be processed at its adjacent Con mine. Miramar jumped 11 to $1.15.

Pacific North West Capital edged ahead 2 to 75 as it announced a resumption in exploration activities at the Agnew Lake palladium joint venture, near Sudbury, Ont. Anglo American Platinum, the world’s largest platinum miner, is funding the project as part of its requirements to earn a 60% interest. New Millennium Metals, which owns the property, climbed 4 on the Canadian Venture Exchange to finish the period at 24.

On the Montreal board, Gold Hawk Resources rose 2 to 21 as it raised sufficient funds to finance a small drill program at its Machacala gold-silver property in northern Peru. Holes will be collared over three mineralized veins that widen to as much as 30 metres.