TSX thrives as golds rebound

The Toronto Stock Exchange continued 177.35 points higher to 9,570.03 during the Feb. 9-15 report period. Much of the increase is due to the miners, with the gold index rebounding to the tune of 11.2 points, or about 6%, to 204.31, as the yellow metal tacked on US$10 to close at US$424.40 per oz. in the afternoon in London on Feb. 15.

Goldcorp and Wheaton River Minerals remained centre-stage. The former’s bid for the latter became unconditional during the report period, with some 69% of Wheaton’s shares being tendered to Goldcorp’s all-stock offer. Goldcorp’s bid has been extended to Feb. 28 to give Wheaton’s remaining shareholders time to send in their stock. Goldcorp fell 43, to $16.43, while Wheaton added 23, to make $4.11. The tender milestone means that a competing bid by Glamis Gold will be allowed to die quietly on Feb. 24. Glamis finished $1.20 higher at $21.20.

Shares in diamond explorer Tahera Diamond rose 2, to 49, after the Department of Indian Affairs and Northern Development awarded the company a lease for Crown lands covering the Jericho project in Nunavut. A similar lease for Inuit treaty lands is expected shortly. Construction is slated for completion by year-end.

The diversified miners gained 13.5 points, ending at 290.98 points. Strong operating and financial results from its 75%-owned McCreedy West mine in Sudbury pushed FNX Mining‘s annual earnings into the black for the first time. The company made $6.5 million in 2004, a nice turnaround from the $10.1 million it lost a year earlier. The shares responded, adding 57 to reach $5.37. FNX’s partner at McCreedy, Dynatec, managed to tack on a dime to finish at $1.04.

Copper miner Aur Resources finished 54 to the good at $6.90, after reporting record earnings of US$96.9 million on revenues of US$336.9 million in 2004. The performance was powered by higher copper prices; the company’s realized price soared 65% from 2003 levels.

Off-index Goldstake Explorations experienced a nice percentage gain, rising 4.5, or 54%, to 14.5. Major BHP Billiton recently dropped its joint-venture option on the Barrow Creek Prospect D in Australia. Aussie miner Mithril Resources can now earn a 75% interest in the property by spending $5 million over four years; the company plans to begin drilling in April.

Also heading higher was Mundoro Mining, which jumped 50, or 21%, to $2.85, after metallurgical tests indicated gold recoveries of up to 94% for the company’s 79%-owned Maoling project in China. The tests employed conventional milling followed by a carbon-in-leach recovery circuit. So far, the company has outlined three deposits outcropping at surface. Combined, indicated resources total 81.6 million tonnes grading 1.2 grams gold per tonne.

Likewise, Kimber Resources soared 37, or 23%, to $1.97 after the discovery of two new gold-silver zones on its Monterde property in Mexico. Limited drilling on the Cocos structure was highlighted by a 26-metre interval which averaging 1.7 grams gold and 21 grams silver per tonne. The best result from the Cob structure was 5.2 grams gold and 163 grams silver per tonne over 4 metres.