Resource stocks turn cold in new year

Although still 14% lighter than a year ago, the Toronto Stock Exchange composite index gained a hefty 155.16 points over the Dec. 31-Jan. 7 report period to finish at 6,772.66.

Gold nosedived at first, only to regain lost ground by the morning of Jan. 8 when it was fixed at US$346.75 per oz. for an overall loss of 75. Not surprisingly, the golds closed 3.05 points lower at 195.60.

Except for Bema Gold and Gabriel Resources, the entire group was down; Meridian Gold fell $1.69 to $26.05; Agnico-Eagle Mines slipped $1.03 to $22.30; Goldcorp slumped 56 to $19.50; Glamis Gold dropped 44 to $17.36; Barrick Gold retreated 40 to $23.95; Kinross Gold fell 20 to $3.67; Placer Dome slipped 18 to $17.68; and Crystallex Resources eased back 12 to $2.21.

Iamgold, which wraps up the index, fell 28 to $7.50 despite completing its merger with Repadre Capital. The merger boosts Iamgold’s number of shares outstanding to 141.4 million, its attributable annual production to 450,000 ounces and its reserves and resources to 5.1 million oz.

The base metals marched ahead 4.22 points to 135.26. Fording was the most active issue, rising 64 on a volume of 4.57 million shares. Hostile suitors Sherritt International and the Ontario Teachers’ Pension Plan raised the cash component of their takeover bid, which, in turn, increases potential future cash distributions from operations. Friendly suitors Teck Cominco and Westshore Terminals Income Fund, which have offered $1 less per share than their rivals, have failed to respond to the revision. Nevertheless, Teck’s B series rose 35 to $11.95 while Sherritt climbed 25 to $4.45.

Cameco, which moved a step closer to reopening the partly owned Bruce nuclear power plant in Ontario, led the rest of the producers with a gain of $1.98. Next came Noranda, which jumped 88 to $15.09. Ivanhoe Mines remained unchanged at $3.27. On Jan. 8, Ivanhoe announced that a geophysical survey at its Turquoise Hill property in Mongolia indicates that the three known porphyry deposits are part of a single system.

Junior McWatters Mining took the most-active award, rising 3 to 29 on a volume of 27.1 million shares. After Kinross, Geomaque was the next most active, rising a penny as 16.1 million shares changed hands, followed by Wheaton River Minerals, up 12 on 14.7 million shares.

Also ahead was International Curator Resources, which climbed 2.5 to 9.5 on news it had resumed exploration of its 60%-owned Assean Lake gold project in north-central Manitoba. The company is targeting possible depth and strike extensions of the Hunt, BIF and B-52 gold zones, as well as potential base metal zones.