Miners surge after Christmas break

The Toronto Stock Exchange’s gold issues dominated the holiday-shortened report period ended Dec. 29.

The gold index shot up 15.59 points over the three days to end 6.5% higher at 234.03. Most of the gains — 13.04 points — came during the period’s final day. The yellow metal added just US$2.75 per oz. to make US$412 per oz. in London by period’s end. The base metal miners performed similarly, jumping 10.13 points to 234.34. Overall, the S&P/TSX composite index tacked on 122.14 points to make 8,260.54, its highest level in about 2.5 years.

Among miners, Pacific Rim Mining saw most of the action, with Kinross Gold selling off its entire holding of 17.6 million shares in the junior. After an early drop of nearly 20%, the shares rebounded to end the report period 21 higher at $1.51. For their part, Kinross’s shares rose 65 to $10.72.

It was hard to pick a loser among the golds by period’s end. Among the remaining major producers, Barrick Gold ended $1.12 richer at a new 52-week high of $30.04, while Placer Dome added $1.91 to reach $24.05.

In a surprise move, Queenstake Resources agreed to sell the recently acquired Magistral gold mine in Mexico to Vancouver-listed Nevada Pacific Gold. Queenstake’s shares climbed 6, or 9% of value, to 73. The price tag for Nevada Pacific is US$7 million in cash plus 2 million shares.

Off-index junior gold explorer International Curator Resources received a period-ending shot in the arm, rising 2 to 19 after regulators approved a 5-old-for-1-new share consolidation. The company will change its name to Canadian Gold Hunter and trade under the ticker symbol CGH. All the changes take effect on Dec. 30. Post-consolidation, the company will have 29.8 million shares outstanding.

A new 3-year deal with employees at its Altonorte custom copper smelter in Chile helped shares in Noranda advance 76 to $21 even. The deal includes improved wages and benefits, and has provisions for performance bonuses.

Ivanhoe Mines rose steadily over the period after the company said it had been granted four 60-year mining licences, including one for its Turquoise Hill copper-gold project in the Mongolia’s South Gobi region. The issue rose 45 to $10.

The country’s uranium miners also fared well, thanks to 7-year highs for the price of their ware. UEX stood out, rising 35.5% to an all-time high of 42, though it later retreated to close 8 better at a new year-high of 39. The world’s largest uranium producer, Cameco, was next in line, gaining $4.45 to $75.45, a level not seen since early 1996, while Denison lagged behind, tacking on 24 to make $6.24. Cameco’s performance was also sparked by the recent start of commercial production at its 31.6%-owned Bruce A nuclear power station in Ontario.