MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Franco-Nevada, Nuinsco brighten gloomy Toronto market

The Toronto Stock Exchange 300 index lost 95.45 points in the report period Jan. 20-26, to end the week at 6,663.45.

The gold and precious metals sub-index offered little help to the broad market, plummeting 263.02 points to 5,727.63. Gold, however, remained unchanged at US$285.90 per oz. on the morning of Jan. 27. Silver and platinum were not so lucky, with the former falling a nickel to US$5.08 per oz. and the later sinking $4 to US$350 per oz.

Though the gold price remained afloat, producers sank: Barrick Gold fell $1.65 to $28.50; Placer Dome slipped $1.30 to $16.75; TVX Gold dropped 29 cents to $2.44; and Kinross Gold deflated 15 cents to $3.40.

Bucking the trend, Franco-Nevada Mining rose 85 cents to $29.60 on news that it had bought 3 million shares in Voisey’s Bay Nickel from Teck. The acquisition increases the royalty company’s net profits interest in the Labrador project to 9.25% and follows the successful startup of commercial production at its jointly held Ken Snyder gold mine in Nevada.

The metals and minerals sub-group plummeted 203.72 points to 3,090.50. Nickel and copper offered poor performances, with the former shedding 2 cents and the latter knocking off a penny. Following suit, Inco plummeted $1.75 to $16.65, while Teck B-series sank $1.05 to $9.95. Also down were Falconbridge, off $1.15 to $16.25, and Noranda, off 30 cents to $16.45.

Boliden was down 55 cents to $2.22 on news that it will offer $233 million in convertible preferred shares to its shareholders. Proceeds will go towards paying down debt and boosting capacity at its Ronnskar smelter and refinery in Sweden. Trelleborg, which holds a 42.9% stake in the company, has consented to the offer, but plans to pass on its shares to shareholders as a dividend.

Potash Corp. of Saskatchewan dipped $5.60 to $97.50. The fertilizer king has been suffering since early August and recently declared a quarterly dividend of 36 cents per share.

Volume leader Nuinsco Resources proved to be a bright spot in a rather dark period, jumping $1.62 to $2.13. This marks the second consecutive period in which the junior has risen on drill results from its Lac Rocher massive sulphide project in Matagami, Que.

Etruscan Resources almost rose from the penny stocks, ending the period at 99 cents. The junior renewed its feasibility study at the Samira gold project in Niger, after raising US$3.5 million in debt financing.