Toronto Stock Exchange Firming golds and base metals move indices

The week long string of advances snapped a losing streak which was sparked by rising interest rates in February. Both metals and minerals and the gold and silver indices were winners, advancing 16.17 pts and 0.15 pts respectively. Metals closed at 3501.18 pts whereas the gold and silver index was firm at 6046.62 pts.

Growing concerns over inflation brought the gold buyers back, as more than $5 was added to bullion. Gold opened at $394.60 on the second London fix.

Base metals issues came back with several making new highs. Most prominent was Cominco Ltd., which charged to a new high of $29.25 before closing at $29.13. Today’s volume was a healthy 337,225 shares.

The company is benefitting from record high zinc prices which are being driven by excellent supply- demand fundamentals. Minnova Inc., another zinc producer, was a tad weaker at $22.25.

Inco Ltd., which is looking at another record quarter this year, traded more than 650,000 shares today to close at $38.75. Nickel prices remain over $8(US) per lb. Falconbridge Ltd., which is Canada’s other major nickel producer, was also strong, trading 492,136 shares to close at $30.38. The company’s next mine could be right in Sudbury. A deep shaft is being sunk on the Lindsley nickel deposit discovered last year.

Gibraltar Mines was steady at $11.25. Gibraltar operates a B.C. open pit copper mine. Copper prices were back over the $1.45 (US)-per-lb-mark this week.

Audrey Resources, a junior base metals miner, remained near its high of $4.30, closing at $4.15. Audrey and Minnova operate the Mobrun zinc-copper mine. A new mill is set to start operations in July.

Gold managed a critical advance back over $390. Some analysts feel bullion is poised to get back over the psychologically important $400 mark in the near future. ERG Resources added 39 cents on the week to close at $3.05. ERG is Canada’s largest gold tailings processor with operations in Timmins, Ont, and Yellowknife, N.W.T.

An old favorite, Golden Knight Resources snapped back to $9.63 before closing at $9.38. The issue was up 40 cents this week. Knight has a 40% interest in the Golden Pond gold mine in Quebec. Inco Gold is the operator with 60%.

Major gold mining companies were also active. American Barrick Resources was unchanged at $27 whereas Placer Dome Inc. slipped to $16.38. Placer is considered a prime candidate for the control block in Newmont Mining if and when it becomes available. Echo Bay Mines was also easier at $18.75.

Neptune Resources was halted today. The previous day’s close was $1.75. The issue lost ground on news that financial difficulties had forced a halt to construction at its ambitious Colomac gold deposit in the Northwest Territories. However, Northgate Exploration, a big investor in the company, has offered a $40-million bridge loan. The last minute scramble resulted in Peggy Witte, Neptune’s founder, being forced out as president of the company. Most observers of the project remain skeptical as to its success. Northgate was steady at $6.88.

Westfield Minerals lost ground, closing at $1.65. Control has passed to an affiliate of Hees, a Canadian merchant banking company. LynnGold was steady at $1.65. Gold production from its MacLellan mine in Manitoba is forecast at 60,000 oz this year. The company had bottomline earnings of $500,000 last year.

A merger between Jascan Resources and Atlantic Goldfields has been called off. Both companies are cash rich, each holding in excess of $10 million. Jascan was firm around 40 cents . Atlantic trades on COATS.

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