Hurricane season blows TSX toward 11,000

The Toronto Stock Exchange tacked on another 113.28 points to make 10,885.16 points amid yo-yoing oil prices, and the downgrading of tropical storm Ophelia, during the report period ended Sept. 12. After a slow start, the golds managed to advance 5.57 points to 213.63. The diversified crowd put on a late surge to finish 7.48 points better at 344.46, despite across-the-board lowering of base metal prices.

Teck Cominco grabbed some headlines, and $2.18 to make $51.35, after finally unveiling plans to acquire a 15% stake in the Fort Hills Energy Limited Partnership, which is developing the like-named oil sands project in Alberta. To do so, the miner will fund $475 million worth of expenditures for Petro-Canada and UTS Energy. The project hosts 2.8 billion barrels of bitumen and permits are in hand for a 190,000-barrel-per-day operation. Startup is anticipated by 2010.

Also making news was Inco, which reached a tentative labour deal with workers at its Thompson nickel operations in Manitoba. The existing 3-year agreement had been set to expire on Sept. 15. Details of the proposed deal were not disclosed, pending a vote by the workforce. Inco also recently tabled a US$34-million plan to extend the Thompson operation’s life by developing the 1-D Lower orebody between 2006 and 2008. The shares ended $1.08 better at $51.88.

Bema Gold jumped 22 to $3.14 after announcing that bankers had agreed to lend the company US$280 million to develop the Kupol gold project in Russia’s Far East. Talks aimed at securing another US$120 million worth of debt financing were nearing completion. Production at Kupol carries a US$460-million price tag. The company also said that it had recently discovered significant gold and silver mineralization some 270 metres deeper than previous drilling; the North Extension zone has also been extended by 300 metres.

Falconbridge remained in the news, with Swiss-based Xstrata announcing a deal to nudge its recent stake to 20.01% via an off-market deal with a non-Canadian investor. Falco recently discovered two significant nickel deposits on the Araguaia nickel laterite properties in the north-central Para state, Brazil. Falco added 62 to hit $28.82.

Erroneous news sent shares in Gabriel Resources soaring 34, or 17%, to $2.32. The company says a recent media report indicating that a company spokesman confirmed talks with Newmont Mining regarding its 80%-owned Rosia Montana project in Romania was incorrect. Newmont gained $1.71 to $50.11.

Canada’s bigger gold producers all put in gains during the period, as the yellow metal advanced US$4.75 per oz. to US$448.35 by the afternoon close in London on Sept. 12. Barrick Gold gained 49 to $32.46; Placer Dome ended 60 better at $18.58; Kinross Gold added 31 to make $8.29; and Goldcorp pushed 65 higher to reach $23.02.

Barrick’s US$540-million Veladero gold mine in Argentina is expected to start up by mid-October. Production is expected to hit 55,000 oz. by year-end, with average annual production of 700,000 oz. projected between 2006 and 2008. Kinross hasn’t filed financial statements resulting from a review of its accounting of goodwill associated with the merger between TVX Gold and Echo Bay. On a brighter note, Goldcorp declared its ninth monthly dividend of 1.5 per share for shareholders of record on Sept. 19; payment will be made by Sept. 26.