The Toronto Stock Exchange composite index began the holiday-shortened April 16-22 report period in retreat mode but quickly found its footing to finish the week 97.74 points ahead. Fueling the rally was another hike in the Bank of Canada’s overnight lending rate, which took effect April 15.
Precious metals also ended higher, led by gold, which jumped US$9.95 to land at a London morning fix of US$333.80 on April 23. Silver was up US8, at US$4.57 per oz.; platinum, US$14, at US$638 per oz.; and palladium, US$6, at US$161 per oz.
Barrick Gold was the most of active of the Big Three, rising 19 on a volume of nearly 7 million shares to end the period at $22.48. Kinross Gold also pulled ahead on heavy trading, rising 54 to $9.31 as 5.4 million shares changed hands. Placer Dome gained 50 to settle at $14.79.
Fledging mid-tier producer Wheaton River Minerals continued to draw investors’ attention, rising 11 on a volume of 10.4 million shares. Wheaton recently bought a 25% stake in the Alumbrera copper-gold mine in Argentina and a 100% stake in the Peaks gold mine in Australia. It is seeking an additional 12.5% interest in Alumbrera. Wheaton finished the period at $1.37.
A slew of positive news, combined with the lure of stable resource stocks, helped the base metals sector stave off an across-the-board drop in metal prices. Spot nickel slipped 12 to a London fix of US$3.58 on April 23, while lead, copper and zinc each eased back a penny.
Falconbridge, which reported a threefold increase in first-quarter earnings as revenue soared 37%, climbed 44 to $16. That, in turn, pushed parent company Noranda up 55 to $12.80. Similarly, Teck Cominco, which also announced considerably improved quarterly earnings, saw its B-series climb 12 to $10.72. Ivanhoe Mines was the only blemish on the group, sinking 7 to finish the period at $3.15; however, by presstime, it had bounced back 8 after announcing it had teamed with state-owned Chinese International Trust & Investment to explore and develop resource projects around the globe.
Eldorado Gold jumped 18 to $2 as 8 million shares changed hands. A few weeks back, the junior said it planned to deepen the shaft at the Sao Bento mine in Brazil and that it had been given an independent endorsement to advance the Kisladag heap-leach project in Turkey. An environmental impact statement has been submitted for governmental review, and construction is expected to begin by year-end.
The largest percentage loss was borne by Nevsun Resources, which fell 12%, or 46, to end the period at $3.37. One of the company’s consulting geologists, Tim Nutt, was murdered while working in a remote area of the Bisha gold property in Eritrea. The military has posted soldiers around the camp, and a police investigation is under way.
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