MINING MARKETS & INVESTMENT NEWS — Base metal majors perform despite weak prices — Most gold miners up as yellow metal stages minor comeback; settlement sparks SouthernEra

The Toronto Stock Exchange enjoyed a broad trading range during the June 17-23 report period, with the TSE 300 composite index dropping marginally to 7,175.23 points. Both mining sub-groups fell more than 3% during a relatively quiet news week, with the metals-and-minerals index dropping to 3,504.24 points and its gold-and-precious-metals counterpart slipping to 5,926.14 points.

Despite the continued sluggishness of base metal prices, most majors in that sector posted gains throughout the week: Noranda was up 30 cents to $24.75; Falconbridge rose $1.15 to $16.95; Rio Algom climbed $1.60 to $21.20; Boliden rose 70 cents to $7.95; and Cominco was up $2.40 to $21.25.

Not so lucky were Inco, which dropped 15 cents to $20.05 and Teck, which slipped 40 cents to $16.34.

Gold staged a bit of comeback during the week, climbing US$5.50 to reach a London morning fix of US$293.90. The rise pulled up several of the gold majors: Barrick Gold jumped $1.55 to $26.95; Placer Dome was up 40 cents to $16.75; TVX Gold climbed 35 cents to $4.65; and Cambior rose a dime to $8.70. Meanwhile, Agnico-Eagle Mines held steady at $7.95 and Kinross Gold slumped 10 cents to $5.

Toronto-based NAR Resources climbed $1.35 to $5.65 as the junior released encouraging drill results from a copper-zinc-silver prospect in northeastern Zimbabwe. By funding the exploration program, NAR is earning an interest from owner-operator Falconbridge. Tandem Resources, which owns 30% of NAR, rose only 3 cents to 40 cents.

The brief rally that Crystallex International stock enjoyed last week turned out to be a dead-cat bounce, as the stock dropped 35 cents through the week to hit a near all-time low of $1.18. The stock traded at $6 before the share price collapsed in mid-June, when the Venezuelan Supreme Court finally put an end to Crystallex’s tenuous ownership claims to parts of Placer Dome’s Las Cristinas deposit.

Diamond miner SouthernEra surged back from a 2-year low, rising $1.85 to $6.65 as the implications of last week’s Marsfontein property settlement with De Beers Consolidated Mines and Randgold & Exploration began to sink in.

Following a year-long decline, Montreal-based ITEC-Mineral rose 10 cents to 28 cents on a single day of heavy trading. In early June, the company acquired the Gold Hill mill, west of Boulder, Colo., where it plans to re-process waste rock once the mill has been refurbished and expanded.

Platinova rose 11 cents to 47 cents. The junior was recently awarded an exploration concession on a zinc showing discovered by Greenland government geologists last summer. Shares of the Greenland diamond explorer had been plummeting in value since February, when it traded above $1.60.

Montreal-based Globex Mining, which traded at $5 a year ago, sunk from above $1.50 in early June to $1 before trading was halted on June 22. The next day, the company announced that it had intersected 19.6 metres (from 1,167 metres) of massive and semi-massive copper and zinc sulphides at its Lyndhurst mine property near Rouyn-Noranda, Que. Alberta-listed Amblin Resources, which rose 10 cents to 60 cents, is earning a half-interest in the property by spending $3.9 million.

Print

Be the first to comment on "MINING MARKETS & INVESTMENT NEWS — Base metal majors perform despite weak prices — Most gold miners up as yellow metal stages minor comeback; settlement sparks SouthernEra"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close