TSE finds footing before closing bell

Despite some teeter-tottering, and no thanks to the golds, the Toronto Stock Exchange composite index ended the Sept. 10-16 period 28.98 points ahead at 7,625.37.

Precious metal prices were down across the board: gold slipped US$8.25 to a London morning fix of US$372.90 per oz. on Sept. 17; silver dipped a nickel to US$5.16 per oz.; platinum fell US$7 to US$696 per oz.; and palladium sank US$11 to US$212 per oz. The yellow metal’s devaluation had the same effect on the gold sub-group, which was down 8.39 points on the period, ending at 198.73.

Canada’s largest gold producer, Barrick Gold, suffered the biggest loss, $1.49, and finished the period at $27. Barrick’s contraction came on a volume of 8.9 million shares. Placer Dome, which fell on an even heavier volume, finished the period at $19.03, for a loss of 23, while Kinross Gold, the most active issue in the resource sector, closed 75 lighter at $10.36. Kinross was hit with a another problem: U.S.-based producer Newmont Mining unloaded two-thirds of the equity it had held in the company, leaving it with just 15.2 million shares.

Eldorado Gold was among the market-gainers, rising 11 to $3.53 as 17.5 million shares changed hands, making it the fourth-most active stock. The junior producer announced an 11% increase in reserves at its advanced Kisladag project in Turkey.

As has been usual of late, Wheaton River Minerals attracted some heavy trading, though this time its popularity was not accompanied by any appreciation in the stock price. The mid-tier producer, which slipped a dime to $2.66, has inked deals with Teck Cominco and Vancouver-listed Miranda Mining to buy their interests in two gold deposits in Mexico. In exchange for US$87 million in cash, Wheaton gains a full stake in Los Filos and a 21.2%-stake (of which 14% is carried) in El Limon.

North American Palladium, Canada’s only primary producer of platinum group metals, sank 61 to $6.75 as spot platinum and palladium lost ground in overseas trading. Despite the poor week, the producer is still well above its 52-week low of $3.08.

Except for zinc, which stayed put, base metals were stronger: nickel climbed US9 to a Sept. 17 morning fix of US$4.51 per lb., and each of lead and copper rose a penny. Inco, which earns the bulk of its income from nickel production, jumped $1.07 on a volume of about 5.3 million shares, making it the most active of the diversified mining and metals bunch. Cross-town rival Falconbridge rose 88 as roughly 3.7 million shares traded, whereas smaller competitor Sherritt International failed to keep up, slipping 14 to $4.85.

The rest of the bunch were just as mixed: Noranda climbed 23 to $13.93; Cameco fell 29 to $47.95; LionOre Mining rose 20 to $6.75; Teck Cominco‘s B-series slipped 45 to $13.85; Ivanhoe Mines fell 24 to $6.79; and Aur Resources teetered 19 to $4.85. Overall, the TSE’s diversified metals and mining sub-group rose 96 basis points to finish the period at 157.9.