Broad market slumps as gold see-saws

The Toronto Stock Exchange composite index surrendered another 99.2 points over the March 5-11 report period to finish the week at 6,290.7.

Gold yo-yoed itself US$5.25 per oz. lower to a London afternoon fix of US$348.70 per oz. on March 11, and lower still at US$346.10 on March 12. The TSX’s gold issues put in a mixed performances, but in the end the gold index shared the yellow metal’s fate, slipping 15.25 points to 152.19.

Northern Orion remained a hot issue with 23.7 million shares trading 4 higher to 21. TVI Pacific made a rare appearance on the most active list, making 3 to reach 10 on a volume of 9 million shares. TVI poured the first gold-silver dor bar at the oxide plant of the violence-plagued Canatuan in southwestern Philippines in January.

The country’s major gold producers headed south. Placer Dome slipped 36 to $13.30 on 14.4 million shares. The company recently wrapped a private placement of US$200 million worth of non-convertible debentures bearing interest at 6.375%. The company plans to redeem its 8.625% junior subordinated debentures on April. 24. Barrick Gold fell $1.76 to $21.35 while Kinross Gold ended the period $1.51 lighter at $8.99.

Southwestern Resources jumped $2.50 to $15.90 on 3 million shares. The first drill hole from the company’s Boka gold project in China’s Yunnan province has returned a wide intersection running 3 grams gold.

Meridian Gold fell steadily to end $2.36 lower at $15.99. A public hearing concerning development of the embattled Esquel gold-silver project in southern Argentina has been delayed until at least a month after the completion of an ongoing water study. Meridian expects the study to wrap up in April.

Cambior, off another 4 at $1.76, says it will lay off 125 employees from the Doyon mine, near Rouyn-Noranda, Que. Work to replace the main shaft and repair the hoist’s bearings is expected to last 7-10 weeks.

Inco led the base metal miners, slumping 39 to $29.25 on nearly 6.9 million shares. Inco will slow production at its Ontario operations in May to allow for maintenance. Production is still pegged at 230 million lbs. nickel in 2003.

Rival Noranda dropped another 46 to hit $12.18. The company plans to build a $3-million electronic hardware recycling facility northwest of Toronto. The facility will process 1 million lbs. of electronics a year and provide feed for the Horne smelter in Quebec.

Cameco grabbed $1.93 to make $36.43. The Saskatoon-based uranium miner recently pulled out of a $1.1-billion uranium enrichment project in the U.S. Cameco had planned to take a 20% stake.

The Fording Coal partners, namely Teck Cominco and Sherritt International, announced that half of the workforce at the Line Creek coal mine in Sparwood, B.C., will be laid off. Teck shares lost 72 to finish at $10.85; Sherritt dropped 47, to $4.28.