The Toronto Stock Exchange slipped a mild 6.81 points over the May 30-June 5 report period to end the week at 8,258.82.
The yellow metal sank US$6.70 to land at a London fix of US$266.95 per oz. on the morning of June 6. Consequently, the golds lost ground, especially the majors, with Barrick Gold tanking $1.15 to $24.25 and Placer Dome slipping 60 to $16.70. A newswire report noted that Barrick plans to shut down its El Indio mine in Chile for three months, starting in June. However, the shutdown is expected to result in a loss of only 20,000 oz.
North American Palladium slipped 15 to $13.55, only to flop 63 on June 6, when a revised production forsecast was announced. The Lac des les palladium mine, near Thunder Bay, Ont., is now expected to produce a quarter less palladium than originally planned for 2001, owing to problems with an expansion program.
Not all was gloomy: SouthernEra Resources edged ahead 30 to $4.11 as it announced Rand Merchant Bank’s approval of a R345-million loan for its Messina platinum group elements project in South Africa. By presstime, the company had risen a further 8 to come within 6 of its 52-week high.
Also up was LionOre Mining, which tabled a positive feasibility study for the 60%-owned Thunderbox gold deposit in Australia. LionOre gained a quarter to end the period at $2.25.
The TSE Metals and Minerals sub-index climbed 77.07 points to close at 4,956.28. Base metal prices were little changed on the London Metal Exchange, except for nickel, which was US4 higher at US$3.27 per lb.
Alcan closed at $71.15, up $2.05. The big aluminum producer announced it had closed the sale of its Jamaican bauxite mines and aluminum-oxide operations to Swiss-based Glencore.
Sherritt International added 55 to close at $5.89. It announced it was paying a 10 dividend on common shares at the end of the month. Similarly, uranium producer Cameco was up 25 at $40.75 as it announced a 12.5 dividend, to be paid in mid-July.
First Quantum Minerals soared 21 over the period to reach a new 52-week high of $4.37. The mid-tier copper miner is proceeding with an equity financing of 4.6-7.6 million shares priced at $4.05 apiece.
Among juniors, Band-Ore Resources climbed 12 to 85 on news of having found more diamonds in the Wawa area. So far, three 24-kg samples of diatreme breccia collected from Area E have released 123 macrodiamonds and several times that many microdiamonds. Caustic fusion analysis continues.
Montreal-listed Lexam Exploration was the highest percentage gainer, jumping 100% to 14 on a volume of 379,300 shares. Curiously, the increase followed the release of financial results that showed the junior ending 2001 with a working capital deficiency of $1.7 million. (The only other news to be released by the junior came a year ago and was also financial in nature.)
Be the first to comment on "Resource stocks mixed as broad market coasts"