Although trading resumed on Sept. 13, the Toronto Stock Exchange was unable to weather the storm caused two days prior by the terrorist attacks in the eastern U.S. Consequently, the 300 index sank 204.3 points over the Sept. 12-18 report period, bringing to 8.3% the 2-week loss of value.
Gold continued its traditional role as a safe haven in troubled times, rising $9.85 over the week to land at a London morning fix of US$289.35 per oz. on Sept. 19. Canada’s major producers of the yellow metal were active but mixed: Barrick Gold, which was the most active issue, with 1.3 million shares traded, fell $1.49 to $26.21, whereas Placer Dome rose 15 to $18.75 as 1 million shares crossed the floor.
Northgate Exploration, operator of the Kemess copper-gold mine in north-central British Columbia, announced the discovery of impressive mineralization within 6 km of the operation. A 10-hole program, focused on the North project, returned up to 0.6% copper and 1.3 grams gold per tonne over 100 metres, though mineralization extends up to 571.8 metres in portions of the zone. Northgate, which rose 13 to $1.18 on the news, plans to drill another six holes in the area.
Manhattan Minerals slipped a penny to 80 as it raised $5.4 million by privately placing 6 million special warrants priced at 90 apiece. Proceeds are earmarked for the Tambo Grande gold and base metals project in northern Peru.
It was another bad week for base metals, with nickel, copper and lead all falling in London markets. Overall, the TSE’s metals and minerals sub-group fell 77.72 points to 3,656.30.
Inco announced its intention to cease exploring around the Voisey’s Bay nickel-copper-cobalt deposit in Labrador. Although considered a natural step in the project’s development, the decision follows an earlier one to begin development at the massive Goro nickel-laterite project on the South Pacific island of New Caledonia. Inco ended the period at $22.60, for a loss of $1.45.
Teck Cominco and Noranda announced that they and their partners at the Antamina copper-zinc mine, in Peru, do not expect to sell output for as much as they anticipated. Low metal prices are behind the revision, and the mine is now expected to generate US$700 million, instead of US$1 billion, in revenue in its first year of operation. Concurrently, Teck Cominco announced that, owing to low metal prices, it may reconsider development of its San Nicolas deposit in Mexico, where a feasibility is scheduled to be completed shortly. Teck Cominco slipped 38 to $10.98, whereas Noranda rose 46 to $15.46.
Among juniors, Echo Bay Mines jumped 18 to $1.08 after it announced it will defer another semi-annual interest payment on its US$100 million in capital securities. It is the eighth consecutive decision to defer the payment, leaving room for just two more deferals. Echo Bay wants to exchange the units for 361.5 million shares.
Be the first to comment on "Broad market slumps again"