The Toronto stock market continued its upward trend over the reporting period June 30-July 8, with the TSX composite index rising 106.50 points to close at 7,089.60 for a gain of 1.5%.
The TSX gold index touched 174 points early in the trading period but finished at 168.44 points, up only fractionally from June 30. Gold bullion prices declined US$5.75 on the week, to US$345.45 per oz. on July 9.
The majors all fell back, with Placer Dome off 31 at $16.19, Barrick Gold down 29 at $23.70, and Kinross Gold backing up 25 to close at $8.84.
Weakness among the big boys found its counterpoint in some modest strength in the mid-tiers: Meridian Gold was 45 higher at $15.85, Iamgold picked up 42 to finish at $7.02, Glamis Gold added 38 to close at $15.65, and Agnico Eagle Mines was 13 better at $15.68.
The big news off the gold index was the merger deal between Black Hawk Mining and Glencairn Gold. The offer is for Glencairn to take over the larger Black Hawk for shares at a ratio of one Glencairn to three Black Hawk. Black Hawk shareholders would end up with 69% of Glencairn, but Glencairn executives would take over most of the management posts.
The deal effectively valued Black Hawk at 16.7 per share at Glencairn’s June 30 price of 50. Black Hawk held at 16 for the trading period, while over on the Venture Exchange, Glencairn was down 2 at 48.
Cambior rose 28 to $2.10. Yet another class action suit arising out of the Omai tailings dam spill in 1995 was filed in May, this one claiming US$2 billion in damages. The plaintiffs have already offered to settle out of court.
Base metal prices were firmer on the London Metal Exchange over the reporting period, with copper up US2 at US77 per lb., lead up US2 at US24, and zinc up a penny at US37. Nickel, however, was the star, gaining US12 per lb. to make a ring price of US$3.94.
That was mostly reflected in the prices of Toronto nickel shares: Inco rose 8 to $28.61, Sherritt International added 12 to $4.65, and LionOre Mining International rose 8 to $5.63. The lone exception was Falconbridge, which was down 17 at $17.75.
The metals and mining index was up a point at 130.11, and most of the base metal miners were stronger. Cameco added 32 to finish at $43.82 and Noranda was up 27 to $13.25. Teck Cominco B-series shares put on a dime to close at $11.15, while the A-series shares picked up 2 for a close of $12.06.
Over on the junior board, Cassiar Resources was up 6 at 21 following a deal to sell its Cassiar mine property in northern British Columbia to privately owned Cassiar Jade Contracting. The deal gets Cassiar — soon to change its name to Troutline Investments and go into another line of business — out from under reclamation liabilities at the former asbestos mine.
NovaGold Resources was up 65 at $3.70. There were no new developments at the company’s three major projects in Alaska, but a reorganization of Viceroy Resources (which was up 2 at 60) gives NovaGold control of a new company, Spectrum Gold, which holds a package of NovaGold and Viceroy properties in British Columbia.
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