TSE rises again, but producers end mixed

Riding the wave of positive economic news, the Toronto Stock Exchange 300 index climbed 70.74 points over the March 13-19 report period to finish the week at 7,936.88.

Not so for gold, which dropped $1.05 to land at a London morning fix of US$292.70 per oz. on March 20. The trend had a mixed affect on Canada’s major producers, with Barrick Gold rising 18 to $28.54 but Placer Dome slipping 4 to $17.96. Kinross Gold, the smallest of the three, came away unscathed, remaining fixed at $1.69.

Among the major base metal producers, Inco and Falconbridge each rose in value as nickel sailed 23 in London metal markets to anchor itself at US$3.11 per lb. on the morning of March 20. The former producer rose a dime to $31.10 while Falconbridge gained 11 to finish the period at $17.50. Also benefitting from nickel’s appreciation was Sherritt International, which rose 27 to $4.95.

With copper also up over the period, Noranda tacked on 65 to close at $17.95. Among the smaller producers of the red metal, Aur Resources gained 9 to $4.39 and First Quantum Minerals rose 15 to $2.90.

Teck Cominco‘s B-series were 79 more expensive, at $15.05, partially reflecting a 1 gain in zinc prices. Breakwater Resources also gained on zinc appreciation, rising 12 to 43.

Ivanhoe Mines dropped a dime to $3.35. The company continues to add land in Mongolia’s South Gobi region. The latest deal adds two prospects and brings the company’s holding in the region to nearly 50,000 sq. km. The company also announced that it has arranged a bought deal of up to $65 million in common shares at $3.25 apiece with a syndicate of underwriters lead by Griffiths McBurney & Partners and HSBC Securities and includes Haywood Securities.

Among juniors, Tahera was the most widely traded, climbing 7 to 31 on a volume of 781,400 shares. The 28% gain continues the junior’s steady rise of late, which, obstensibly, reflects its diamond exploration efforts in Nunavut, where it is exploring with the Canadian unit of London-based Rio Tinto.

In a close second came South American Gold and Copper, which rose a nickel to 18 as 729,100 shares changed hands. Several weeks ago, the junior topped up its till by privately placing 24 million units at 4 apiece.

On March 20, Namibian Minerals was notified by American authorities that its share price had been trading below the US$1 threshold over 30 days, as required to retain a listing on the Nasdaq. The junior has until mid-May to prop up its market value; otherwise it will be delisted. The news had little effect on the company’s Canadian shares, which rose a penny to 19.