Fueled in part by gains in the gold and base metal sectors, the Toronto Stock Exchange rocketed 148.32 points over the April 30-May 6 report to land at 6,693.71.
By the period’s end, the gold group had added 11.62 points to settle at 162.88. Pushing the group along were London metal traders, which tacked US$7 on to the price of the yellow metal, fixing it at US$343 per oz. on the morning of May 7.
Barrick Gold was the most active of the majors, rising 86 to $22.34 on a volume of 10.7 million shares. Following closely behind was Kinross Gold, though it jumped $1.08 on the excitement to finish at $9.54. Placer Dome lagged far behind both, advancing 68 to $14.94 as 7.7 million shares changed hands.
Mid-tier producer Glamis Gold, which reported lower first-quarter earnings, nevertheless rose $1.27 to $16.56. Net earnings were US$1.3 million shy of year-ago levels, but cash flow remained virtually unchanged.
Junior Eldorado Gold soared 30, or 16%, to $2.20 on news it had earned US$2.6 million in the first quarter. The turnaround — the company lost US$300,000 in the first three months of 2002 — mainly reflects higher production from the Sao Bento gold mine in Brazil.
Also up was McWatters Mining, which rose 2 to 18 on a volume of roughly 10 million shares. Underwriters of a recent public equity offering exercised an over-allotment option that expires on May 8, and the decision follows the company’s recent delineation of 1.2 million measured and indicated tonnes grading 4.25 grams per tonne at the suspended Kiena gold mine, near Val d’Or, Que.
Gold-copper miner Northgate Exploration was the most active during the period, rising 1 to $1.48 on a volume of 13.4 million shares. On May 1, the company announced a first-quarter loss of US$4.4 million (or 2 per share) on revenue of US$26.4 million, compared with US$3.5 million (16 a share) on US$25.5 million a year ago.
The TSX Diversified Metals & Mining index finished the period up 1.95 points, at 121.04. The driving forces were Cameco, Falconbridge and Teck Cominco‘s B-series, with all the remaining issues losing ground.
Despite a US6 gain in London spot nickel, Inco fell 29 to $27.16, Sherritt International fell 27 to $4.08, and LionOre Mining fell 2 to $5.40. Noranda was off 10 at $12.28, Ivanhoe Mines, slipped 3 to $3.15, and Aur Resources eased back 2 to $3.55.
Junior Rex Diamond Mining jumped 20, or 30%, to 87 as 10 million shares changed hands. Rex, which mines and explores for diamonds in South Africa, was unable to account for the activity.
In a similar vein, Asbestos was the highest percentage gainer for no apparent reason. The company jumped $3.24, or 93%, to $6.75 on a volume of 30,800 shares. By presstime, after the company announced its inability to explain the market activity, the shares had retreated $1, or 15%, on a volume of 3,200 shares.
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