After a week long free fall caused by sky high interest rates and falling profits, the Toronto market finally recovered a small amount of lost ground today, April 25. But investors who are obviously taking shelter in government bonds and treasury bills could hardly take heart in a 0.07% advance in the composite 300 index. A wide measure of Canada’s most frequently traded stocks, the index ended the day at 3343.17.
While the week ended April 24 will rank as the worst that Toronto investors have experienced since the global market stock market crash in October, 1987, there was more bad news to come for those who are predicting an upswing in the price of gold.
The yellow metal closed down US$4 at US$371.45 an ounce on the second London fix taking both the gold and silver index and the share prices of some major producers along with it. Echo Bay was the biggest casualty, closing down 63 cents at $16.50. Despite a record first quarter, American Barrick shares dropped 60 cents and Placer Dome gave up 25 cents to end the day at $18.25.
The metals and minerals index, meanwhile, gained 39.97 points to close at 2828.84.
Promoter Murray Pezim appears to have been usurped once again by Corona Chairman Ned Goodman who moved this week to tie up control of the Eskay Creek gold discovery in British Columbia.
Corona expects to end up with a 44.6% stake in the offspring of a proposed amalgamation of Prime Resources and Stikine Resources, each holds 50% of the Eskay Creek discovery. Goodman, as mining observers already know, did something similar in the Hemlo, Ont., region where Corona is an established producer. Shares of Corona gained 12 cents, closing at $7.75, while Stikine was up $1 at $58.50.
With interest rates at their highest level (14.75%) since 1982, it is no surprise to find that mining companies across the country are having difficulty raising money for exploration.
Geomaque Explorations, for example, is looking for a new partner to earn in on its Bourlamque Twp. base metal project east of Val d’Or, Que. Although the property is just 10 miles southwest of the Aur Resources, Societe Miniere Louvem massive sulphide discovery, partner Kingswood Exploration has been forced to drop the option. Geomaque was even today at 25 cents.
Speaking of Val d’Or, Louvem Chairman Pierre Gauthier complained recently that his company’s shares should be trading on a par with those of Aur. Ironically, after Aur executed its stock split, Louvem shares are trading at $4.90, 5 cents higher than Aur’s.
To limit the risk and cost involved in exploring three properties in the promising Douay-Vezza Twp. region in northwestern Quebec, Total Energold is allowing Morrison Minerals to farm in for half of its 60% stake in the properties.
Held by Jonpol Explorations, Perrex Resources and Northway Explorations, the properties include one that ties on to the Dundee- Palliser, North American Rare Metals gold project in Vezza Twp. The Societe d’Exploration Vior, Inco, Cambior project in Douay Twp., which yielded 15 ft. of grade 0.23 oz. gold per ton, is also just five miles further west.
Although Inco’s first-quarter earnings were down sharply from last year, shares of the big nickel miner closed up 37 cents at $28.50. Noranda, by contrast, was down 12 cents at $18.38.
If the progress of a development project is to be judged by the strength of its owners’ share price, Madeleine Mines’ palladium property at Lac des Iles is rapidly moving toward production.
Although Madeleine gave up 12 cents to end the day at $6.13, the issue is trading at close to its 52-week high. However, President Pat Sheridan’s penchant for wanting to do things his way may tie the project up as he has yet to submit the documentation required by the Ontario Ministry of the Environment.
Equity Silver Mines said it could think of no reason why the price of its shares should have dropped to $1.90 from $2.60 earlier in the week. But a company spokesman says it may be dawning on shareholders that Equity Silver is rapidly approaching the mid-1992 closure date for its Houston, B.C., silver mine. The liability for treating acid mine run-off is likely to be about $30 million, according to an independent study. That is $10 million more than Equity Silver had anticipated. The issue ended the week up 10 cents at $2.05.
Touching new lows this week were Audrey Resources, Aurizon Mines, Equity Silver, Eastmaque Gold, Muscocho Exploration, Noranda and Sherritt Gordon.
After a week long free fall caused by sky high interest rates and falling profits, the Toronto market finally recovered a small amount of lost ground today, April 25. But investors who are obviously taking shelter in government bonds and treasury bills could hardly take heart in a 0.07% advance in the composite 300 index. A wide measure of Canada’s most frequently traded stocks, the index ended the day at 3343.17.
While the week ended April 24 will rank as the worst that Toronto investors have experienced since the global market stock market crash in October, 1987, there was more bad news to come for those who are predicting an upswing in the price of gold.
The yellow metal closed down US$4 at US$371.45 an ounce on the second London fix taking both the gold and silver index and the share prices of some major producers along with it. Echo Bay was the biggest casualty, closing down 63 cents at $16.50. Despite a record first quarter, American Barrick shares dropped 60 cents and Placer Dome gave up 25 cents to end the day at $18.25.
The metals and minerals index, meanwhile, gained 39.97 points to close at 2828.84.
Promoter Murray Pezim appears to have been usurped once again by Corona Chairman Ned Goodman who moved this week to tie up control of the Eskay Creek gold discovery in British Columbia.
Corona expects to end up with a 44.6% stake in the offspring of a proposed amalgamation of Prime Resources and Stikine Resources, each holds 50% of the Eskay Creek discovery. Goodman, as mining observers already know, did something similar in the Hemlo, Ont., region where Corona is an established producer. Shares of Corona gained 12 cents, closing at $7.75, while Stikine was up $1 at $58.50.
With interest rates at their highest level (14.75%) since 1982, it is no surprise to find that mining companies across the country are having difficulty raising money for exploration.
Geomaque Explorations, for example, is looking for a new partner to earn in on its Bourlamque Twp. base metal project east of Val d’Or, Que. Although the property is just 10 miles southwest of the Aur Resources, Societe Miniere Louvem massive sulphide discovery, partner Kingswood Exploration has been forced to drop the option. Geomaque was even today at 25 cents.
Speaking of Val d’Or, Louvem Chairman Pierre Gauthier complained recently that his company’s shares should be trading on a par with those of Aur. Ironically, after Aur executed its stock split, Louvem shares are trading at $4.90, 5 cents higher than Aur’s.
To limit the risk and cost involved in exploring three properties in the promising Douay-Vezza Twp. region in northwestern Quebec, Total Energold is allowing Morrison Minerals to farm in for half of its 60% stake in the properties.
Held by Jonpol Explorations, Perrex Resources and Northway Explorations, the properties include one that ties on to the Dundee- Palliser, North American Rare Metals gold project in Vezza Twp. The Societe d’Exploration Vior, Inco, Cambior project in Douay Twp., which yielded 15 ft. of grade 0.23 oz. gold per ton, is also just five miles further west.
Although Inco’s first-quarter earnings were down sharply from last year, shares of the big nickel miner closed up 37 cents at $28.50. Noranda, by contrast, was down 12 cents at $18.38.
If the progress of a development project is to be judged by the strength of its owners’ share price, Madeleine Mines’ palladium property at Lac des Iles is rapidly moving toward production.
Although Madeleine gave up 12 cents to end the day at $6.13, the issue is trading at close to its 52-week high. However, President Pat Sheridan’s penchant for wanting to do things his way may tie the project up as he has yet to submit the documentation required by the Ontario Ministry of the Environment.
Equity Silver Mines said it could think of no reason why the price of its shares should have dropped to $1.90 from $2.60 earlier in the week. But a company spokesman says it may be dawning on shareholders that Equity Silver is rapidly approaching the mid-1992 closure date for its Houston, B.C., silver mine. The liability for treating acid mine run-off is likely to be about $30 million, according to an independent study. That is $10 million more than Equity Silver had anticipated. The issue ended the week up 10 cents at $2.05.
Touching new lows this week were Audrey Resources, Aurizon Mines, Equity Silver, Eastmaque Gold, Muscocho Exploration, Noranda and Sherritt Gordon.
Be the first to comment on "Toronto Stock Exchange Market free fall ends as Goodman ties up (April 30, 1990)"