STOCK MARKETS — Metals lose ground as TSE rises

The gold and base metal issues lost ground over the report period ended April 23, as the Toronto Stock Exchange creaked to a new high. The TSE 300 composite index slipped on April 17 but rose steadily for the rest of the period, setting record highs of 5,095.50 on April 22 and 5,116.94 on April 23 to post a gain of 31.58 points (0.6%) on the week.

The markets were helped along by a quarter-point decline in the Bank of Canada’s overnight loan rate, which now stands at 5%. The Bundesbank, facing continued weakness in the German economy, allowed its rates to fall and central banks in several other countries followed suit.

The dollar, which had been consistently strong against the major foreign currencies, fell slightly on the week, finishing at US73.42 cents on April 23. Most other foreign currencies picked up some of the ground lost to the Loony in recent weeks, with the exception of the pound and the Deutschmark.

Gold fell again this week. The London bullion dealers’ morning price on April 24 was US$391.10 per oz., down 30 cents from April 17. Silver added 1 cents to US$5.32, and platinum came up with a modest recovery, picking up $1.50 for a London morning price of US$403.25 per oz.

The TSE gold and precious metals sub-index was down 101.28 points for the trading period, closing April 23 at 12,225.25. TVX Gold was down 88 cents to $11, Placer Dome fell 12 cents to $38.25, and Barrick Gold slipped 12 cents to $41. Franco Nevada, more sensitive to metal prices, owing to its royalty interests, was $2 lower at $77.

A diamond explorer on the gold index, Aber Resources, was up $2.75 to $20.38 on the news that bulk sampling had confirmed earlier estimates of grade at its Diavik diamond project in the Northwest Territories.

Copper continued to rise, putting on 3 cents to finish at US$1.20 per lb.

Lead and zinc were unchanged, while volatile nickel was off 8 cents to US$3.61 per lb.

Base metal issues were mixed, but mainly positive. Diamond Fields Resources, still trading heavily, closed at $40.25, unchanged from the previous week.

Proud parent-to-be Inco was up 38 cents to $45.38. Noranda was off 25 cents to close at $31, Rio Algom was unchanged at $27.25, and Cameco was up 62 cents to finish at $72.88.

The reorganization of Inmet got a positive reception on several fronts. The company was up 38 cents to finish the trading period at $11.38, after announcing it would sell 5 million Class B shares of Teck by public offering.

Teck B was down 25 cents to close at $29.75; A-series shares, of which Inmet will keep 1.8 million, were up 12 cents to $29.12. Cominco, which had bought control of RFC Resource Finance from Inmet, announced it had completed its acquisition of minority holdings. Cominco added 12 cents to close at $33.12.

Bre-X Minerals, newly listed on the TSE, was unchanged at $187.50. Several analysts had suggested that a listing on the TSE would raise the company’s profile and attract attention from institutional investors. Montreal-listed Bresea Resources, the poor man’s Bre-X, saw a gain of 38 cents on the week, closing at $15.62.

Black Swan Minerals faded back to 70 cents, a loss of 35 cents on the week, but still traded 39 million shares. Pure Gold Resources added another 1 cents to close at 28 cents.

Nuinsco Resources added 48 cents to close at $1.47, with 1.8 million shares trading. An exploration hole drilled at its Rainy River base metals property cut 8 metres of massive to semi-massive sulphides. Property partner Western Troy Capital, listed on the ASE, rose 60 cents for an April 23 price of $1.50.

Montreal-listed juniors were lively. Continental Precious Minerals was up 69 cents to close at $2.75, and Ditem Exploration added $1.25 to finish the week at $5.88. Orbite Exploration, acquiring a gold property in Alaska, added 9 cents

to 67 cents.