Powered by rising oil prices, Canada’s resource sectors helped the Toronto Stock Exchange rebound by 148.5 points during the March 29-to-April 4 report period; the S&P TSX Composite Index finished at 9,630.9. The golds contributed a 2.27-point rise to 191.51, even as the yellow metal fell US$2.2 per oz. to finish at US$423.90 in the afternoon in London on April 4. The diversified miners gained 11.11 points to settle at 315.13, while the base metals ended mixed.
Noranda was the volume leader, with 12.6 million shares trading 29 higher to $24.53. The shares have been on the rise since the company tabled plans to buy the 40% of Falconbridge it does not already own. Falco rose 42 to hit 43.30.
Southern Platinum was next in line, finishing unchanged at $2.54, even with 8.4 million shares crossing the floor. The company lost US$23.3 million in 2004, compared with net earnings of US$1.6 million a year earlier.
Canada’s big three gold producers sprang to life to find themselves among the top 10 traders: Placer Dome led the way with 8.1 million shares, sliding 33 to finish at $18.94; Barrick Gold gained 24, to end at $29; and Kinross Gold fell 3, to $7.26.
Barrick Gold and New Orleans-based coin dealer Blanchard have failed to settle their legal battle. A Louisiana district court had ordered the two to reach an out-of-court deal as part of the normal judicial process, reports Reuters. Blanchard has accused Barrick and J.P. Morgan Chase & Co. of colluding to rig the gold price and monopolize bullion trading.
The Ontario Securities Commission recently banned insiders and officials of Kinross Gold from trading in the company’s shares after the gold miner failed to file its 2004 financial statements. Last month, Kinross warned it would miss the March 31 deadline as it was reviewing the valuation of assets picked up via its merger with TVX Gold and Echo Bay Mines. Robert Buchan has resigned as non-executive chairman of Kinross. Buchan decided to step down as CEO in January; Tye Burt has assumed the role of president and CEO.
SouthernEra Diamonds saw more action than usual, with 6.1 million shares gaining 6 to finish at 56. The diamond miner completed a private placement of 13.9 million units priced at 42 apiece for proceeds of $5.8 million. Also, the company posted a before-tax loss of US$14.5 million for 2004, slightly less than the loss incurred in the previous year.
Shares in Ivanhoe Mines rose steadily after the company inked a memorandum of understanding with Japan’s Mitsui & Co. to develop copper-gold and coal projects in Mongolia. Ivanhoe has also agreed to consider letting Mitsui participate in the Oyu Tolgoi copper-gold project. Ivanhoe finished 50 better at $9.40.
Heading south was Virginia Gold Mines, which shed 83, or nearly 15%, to close at $4.77. The latest batch of drill holes from the leonore property in the Opineca reservoir region of Quebec have extended the Roberto system by 200-700 metres of strike length.
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