STOCK MARKETS — Mixed showing by equities belie stronger

The gold price strengthened somewhat over the week, rising nearly US$6 per oz. to US$392.70. However, gold equities put in a mixed performance.

For example, Franco Nevada lost 63 cents to close at $93.38 while Euro Nevada lost $1.25 to $48.25 and TVX Gold shed 13 cents to $9. Among the gainers, though, were Agnico Eagle, up 25 cents to $18; American Barrick, up $1.63 to $40.50; Cambior, up 63 cents to $23.25; and Echo Bay, up $1 to $19.75.

As a matter of interest for gold bugs Gold Update II: January 1994 is now available from Gold Fields Mineral Services. At a glance, we noted that total world (east and west) mine production rose to an estimated 2,269 tonnes from 2,231 tonnes in 1992. Gold mine production from the Commonwealth of Independent States (CIS) was an estimated 230 tonnes, notes Gold Fields. Our own correspondent in Moscow quotes E. Bichkov, chairman of Russia’s Precious Metals Committee, as saying that, of the total CIS production, an estimated 157.7 tonnes came from Russian mines. (The comparable 1992 Russian figure is 129.5 tonnes.)

Gold Fields goes on to note that total supply (from mines, official sales and scrap) was 3,348 tonnes, a 4.5% decrease from the previous year. Among emerging gold miners, Kinross gained 35 cents to close at $4.75. Western Quebec climbed 65 cents to $3.45. However, a better gold price had little to do with it. Just before presstime, Western Quebec, a small producer in the Abitibi region, announced it had won in the bidding for Central Crude. Western Quebec bought from Hemlo Gold four million Central Crude shares and a 60% interest in the Eagle River property, which has reserves of two million tonnes (most in the probable category) grading 8.44 grams gold per tonne. Leading up to the announcement, Central Crude hit a new 52-week high of $1.93 before settling at $1.82, a jump of 57 cents during the report week. A new CDN-listed issue, Pangea Goldfields has performed remarkably well since being listed. It began earlier this year at $1.85 and is now trading at $4.05. Ex-Burns Fry analyst J.C. Potvin runs the company, which has three drills turning on a property near Matheson, Ont.

Opawica Resources, which a week ago soared $1.40, shed 20 cents this week, closing at $1.80. Only 9,500 shares changed hands. The recent gyrations in share prices were probably the result of a change in control. Two principal shareholders have agreed to sell their control block (36% ownership) to a group of investors for 60 cents a share. (The agreement occurred before the latest runup in share prices.) The same buyer may also buy another 909,900 shares in a private placement. The company president is Glen Harper. There were 1.8 million shares outstanding before the change in control. According to the latest entry in the Canadian Mines Handbook, Opawica is suing Metall Mining and Falconbridge over ownership of the Lac Shortt property in northwestern Quebec. It currently holds a 7.5% net profits interest.

Consolidated Professor moved up during the week by 15 cents on news of a rights offering to raise money. Parent Conwest is subscribing for its portion (see page 3 for details). Consolidated Professor closed at 60 cents. Metall Mining, the Canadian subsidiary of financially challenged Metallgesellschaft, continues to hold its own, while the German parent suffers through the angst of a restructuring. Metall closed down 38 cents at $11.13. The key question: Which mining company will eventually scoop up the Canadian sub, and at what price?

Golden Star has agreed to a private placement totaling $52.5 million. Its shares closed up 75 cents at $20.38.