Broad market climbs as golds tumble

Regaining ground lost in the previous period, the Toronto Stock Exchange Composite Index closed up 94.38 points higher in the Nov. 13-19 report period. The benchmark was set at 6,423.65 points.

London metal traders pushed gold down US$4.20 over the five trading days, fixing it at US$319 per oz. on the morning of Nov. 20. For homegrown producers, the yellow metal’s depreciation meant a 8.16-point loss on the TSE Gold Index.

Canadian heavyweights Barrick Gold and Placer Dome each slipped with their product — Barrick, 60 to $24.50; Placer, 32 to $15.30.

Kinross Gold was the most active stock, falling 35 to $2.73 on a volume of 27.4 million shares. The company’s proposed merger with TVX Gold and Echo Bay Mines has been delayed until the end of January, and early indications are that it won’t actually close until a month afterwards. TVX crashed $2.16 to $17.50 as Echo Bay slipped 22 to $1.38.

Among the few gainers was High River Gold, which tacked on 7 to finish at $1.87. The junior miner reported higher revenue and earnings for the third quarter, owing to the recent consolidation of results from its Russian gold subsidiary, Buryatzoloto.

As usual, nickel led the surge in base metal prices, rising 14 over the period to a London morning fix of US$3.39 per lb. Also on Nov. 20, lead was trading a penny higher and copper, two pennies higher.

The TSE’s Diversified Metals and Mining Index edged ahead 2.18 points to finish the period at 123.98. Inco led the pack with a $1.13-jump to $31.11, followed closely by Noranda, which climbed 73 to $15.

Fording, which is still under attack from takeover guns Sherritt International and the Ontario Teachers Pension Fund, was the most active issue, slipping 25 to $31.60 on a volume exceeding 5 million shares. Sherritt was among the gainers, ascending 9 to $4.30.

Officially extending itself to gold, LionOre Mining celebrated the first pour at the Thunder Box mine in Western Australia. LionOre, which has traditionally earned its income from a 41.65% stake in the Tati nickel operations, in Botswana, is now expected to crank out 800,000 oz. over the next eight years at an average cash cost of US$157 per oz. The producer ended the period at $4.25, up 13.

Also ending higher were: Cameco, up 25 at $33; Falconbridge, up 53 at $15.12; and Ivanhoe Mines, up 6 at $3.03. Like Fording, Teck Cominco‘s B-series closed down lower, easing back 34 to $10.95.

In the junior market, Diamond Fields International slipped 2 to 41 as a battle for new leadership heated up. Led by company founder Raymond Boulle, a group of shareholders is seeking support to oust the existing board of directors and replace them with new nominees. On behalf of Diamond Fields, current management has filed a petition in the Supreme Court of the Yukon Territory, asking it to invalidate the group’s solicitation and any proxies now in its possession. Diamond Fields’ annual general meeting is scheduled for Nov. 21.