Market news: Toronto Stock Exchange

The S&P/TSX Composite Index was up 118 points to 12,801.23 points for the period, improving global investor sentiment. Investor confidence was bolstered by an unexpected drop in the U.S. trade deficit and data out of China that pointed to its economy strengthening.

Despite the price for gold being down US$3 to US$1,666.90 per oz., the Global Gold Index was up — if only 2 points — to 280.96 points.

The S&P/TSX Capped Diversified Metals & Mining Index, however, followed the trajectory of base metal prices. The index was down 23 points to 977.66 points, and the price for copper was off 2¢ to finish up the period selling for US$3.76 per lb.

Two of Canada’s top gold producers found one of their newly minted projects in the headlines for the wrong reasons. Just a few weeks after getting the Pueblo Viejo gold mine in the Dominican Republic into commercial production, joint-venture partners Barrick Gold and Goldcorp could be doing battle with the national government. Reports out of the country said the Chamber of Deputies is thinking about renegotiating its contract with the companies for more favourable terms. The news had little effect on the senior producers’ share price, as Barrick shares finished the period up 74¢ to $32.84, while Goldcorp shares were up 71¢ to $36.23.

Western Lithium saw its share price rise by 38% to finish at 22¢ after closing a royalty financing that will raise US$20 million for company coffers. The financing was done with Red Kite, a metal-focused investment firm, and will help Western Lithium develop a mill with a 10,000-tonne annual capacity at its Kings Valley project in Nevada.

Platinum Group Metals got a boost the old-fashioned way: via the drill. Shares were up 21% to $1.41 after the company announced that drilling at the Waterberg deposit in South Africa hit mineralized layers. If the layers are part of the “F” mineralization, as suspected, the deposit would expand by 750 metres eastward and be brought updip from 1,000 metres vertical depth to about 280 metres deep. Platinum Group has a 50% stake in the Waterberg property, and serves as operator.

Iron-ore producer Northland Resources shares fell 32% to 12¢ after cancelling a $250-million equity issue and a $125-million bond, which it expected would cover rising capital and operating costs at its Swedish mine. The company was supposed to load its first vessel with high-grade iron ore from its Kaunisvaara mine on Feb. 9 for shipment to its partner Tata Steel, in the Netherlands. Northland stock has fallen 85% since the beginning of the year, when its shares traded in the $1.20 range. The shares fell hard in late January after Northland said it had a funding shortfall, which it attributed to higher-than-expected operating costs in the production ramp-up phase, higher capital expenditures, lower iron-ore prices and adverse movements in exchange rates.

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