STOCK MARKETS — Metals, TSE enjoy a steady week

The Toronto Stock Exchange managed a late recovery to close fractionally higher over the report period ended July 9, with the TSE 300 composite index posting a gain of 2.75 points (0.05%) on the week.

Although the base metal sector had almost recovered by the end of the period, the TSE index once again relied on the steady performance of the gold sector for support.

The Canadian dollar was slightly weaker against the U.S. dollar, closing 45 basis points lower at US$73.03 on July 9.

The price of gold drifted down $1 over the period, reaching US$381 per oz. on the morning of July 9, having dipped as low as US$380 on July 8. Silver was relatively unchanged for the week, dropping 2 cents to finish at US$5.12 per oz., while platinum gave up almost all of the gain it had posted in the previous week, dropping US$1.50 to close at US$390.25.

The TSE’s gold and precious metals sub-index was up 357.71 points (3.2%) for the week, hitting 11488.81. Bre-X Minerals, actively exploring its huge Busang gold project in Indonesia, was the most actively traded stock, with 5.7 million shares changing hands. Its share price dropped 20 cents over the week, closing at $21.95 on July 9.

Also active was Arequipa Resources, which saw nearly 5 million of its shares traded. The stock closed at $20.20, up $3.20 from the previous week. Arequipa is halfway through a 5,000-metre reverse-circulation drill program on its Peirina gold property in Peru. Drilling problems that spooked the market in early June are said to be mostly resolved, with all but one of the latest holes having reached their intended depths.

Placer Dome stock was heavily traded, with a volume just short of 4 million shares, and the highest value traded among mining companies ($126.1 million).

The major’s stock price climbed $1.55 to $34.45, bouncing back from the previous week’s drop.

TVX Gold shares climbed 65 cents, to $10.70 on a volume of 3.8 million shares, while Barrick Gold shares gained a full $2, to close at $39.55 in heavy trading.

William Resources was heavily traded (the volume was 2.5 million shares) as a result of its acquisition of Brazilian gold mining firm Jacobina Mineracao.

The acquisition is expected to double William’s resource base to 8 million from 4 million oz. gold.

Close to 2 million shares of Rayrock Yellowknife Resources were traded this week, after Rayrock and its partner, Inter-Rock Gold (which shares common management with Rayrock), made a positive production decision on the Daisy gold project in Nevada. The heap-leach operation should be ready for production by year-end.

Rayrock’s stock rose 25 cents to $8.85, while Inter-Rock’s stock increased in value by 46%, closing at an even $1.

Base metals, which have been hit hard in recent weeks, faired better this week, though none posted gains. Nickel gave up 10 cents, falling to $3.37, while copper and zinc each lost a penny, finishing the week at 90 cents and 45 cents, respectively.

The TSE mines and metals sub-index fell 15.64 points, or 0.3%, closing at 5076.66 on July 9. Falconbridge led the way in terms of trading volume, with 2.8 million shares changing hands. The stock fell 55 cents, however, closing at an even $29.

Large amounts of both Inco and Diamond Fields Resources stock were traded, as the merger of the two companies continued to be delayed by a lawsuit from Exdiam, which is claiming ownership of Diamond Fields’ stock. Inco stock rose 40 cents to $44.10, while Diamond Fields lost an equal amount, to close at $38.35.

Noranda stock was heavily traded in terms of number of trades and their value. The stock lost 35 cents, falling to $27.20, on volume of 1.9 million shares valued at $46.8 million.