MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — TSE slips as base metals post gains

The Toronto Stock Exchange 300 index slipped 229.55 points in the report period Feb. 24-March 2, largely on further reports of poor first-quarter bank earnings. The broad market ended the period at 6,225.19, or 3.6% lower than in the previous week.

The metals and minerals sub-group benefited from stronger metal prices, rising 65.41 points to 2,948.11. Nickel and copper each edged ahead a penny, with the former trading at US$2.22 per lb. and the latter at US63 cents per lb. Zinc was also ahead, up 2 cents, to 48 cents per lb., whereas lead remained at par.

The stronger nickel prices translated into a 90 cents gain for Inco, which closed the period at $17.70, and a 30 cents gain for Falconbridge, which closed at $15.85. Also ahead were Cominco, up 25 cents to $20.25, and Rio Algom, up 30 cents to $15.80.

Noranda, which has decided against reorganizing its capital structure, climbed 20 cents, to $16. The major received strong opposition for its proposed change, announced in the previous period, which would have seen the elimination of its authorized but unissued participating non-voting shares and the subdivision of its existing common shares into two classes having equal voting rights.

On the morning of March 3, gold was trading at US$286.65 per oz., for a gain of 55 cents from the previous week; silver traded at US$5.35, for a loss of 15 cents; platinum fetched US$373 per oz., for a drop of US$11; and palladium fetched US$350 per oz., indicating a gain of $2.

Once again gold stocks failed to share in gold’s good fortune, as the TSE’s gold and precious metals sub-index shed 103.16 points to end the period at 5,362.80. Placer Dome was off 25 cents at $16.75, while Kinross Gold ended 3 cents lower at $3.34. Both Barrick Gold and TVX Gold finished the period unscathed.

Sutton Resources climbed another 5 cents, to $12.10, as the market continued to contemplate that company’s proposed takeover by Barrick. The attempt has already pushed Sutton’s share price up $5.05.

Glamis Gold was up 10 cents to $2.50, and Rayrock Resources climbed 20 cents to $6. The two companies were recently amalgamated and will soon trade under the name New Glamis.

DiamondWorks, which resumed trading on March 1, dropped 13 cents to 17 cents on news that it has raised $9.3 million in a private placement of 54.47 million units sold at 17 cents each. The company requested its own removal from active trading following an attack on its Yetwene diamond property in Angola that resulted in several deaths, injuries and kidnappings.

Nuinsco Resources rose 27 cents to $3.04 on 3.7 million shares traded. The junior took off in mid-January after announcing it had cut intervals of nickel and copper mineralization near Lac Rocher, Que.