Broad market unfazed by Hussein’s arrest

The capture of Saddam Hussein over the Dec. 10-16 report period was certainly a political triumph for the U.S., but two subsequent car bombings in the country’s capital left investors here at home skeptical about any newfound peace. Saddam’s capture was announced early on Sunday; by Monday’s close, the composite index was up 23 points; by the next day, it had reversed 47.1 points, leaving it with a 5-day loss of 43.83 points.

Reacting similarly to the news, London gold slipped on Monday, only to rebound by the period’s end. The yellow metal was fixed at US$409.70 per oz. on the morning of Dec. 16 for an overall gain of US$1.45 per oz.

Canadian producers were unable to navigate the rough waters, with the gold sub-group dropping 11.98 points to finish at 219.83. Barrick Gold sank 35 to $28.30; Placer Dome, $1.31 to $21.68; and Kinross Gold, $1.18 to $10.15. Placer announced that 2004 production will be 200,000 oz. shy of the anticipated output of 3.8 million oz. and that, as a result, cash costs would be US$5-10 higher than 2003 costs of US$220 per oz.

Eldorado Gold released a lacklustre exploration update from western Turkey, especially for three prospects on the Biga Peninsula. The best result from preliminary drilling at the Keditasis showing was 1.37 grams per tonne over 6 metres, and at the Yatikas showing, 7.3 grams over 4 metres. The rig is now turning at the Subeylidere target, where the first of five planned holes cut 1 metre at 6.8 grams. Offsetting the disappointment was the company’s receipt of one of three remaining permits required to begin construction at the Kisladag gold project in the west-central part of the country. Eldorado finished at $4.05, off 20 on the period.

Glencairn Gold broke ground at its Bellavista open-pit, heap-leach project in Costa Rica, putting the company on track for production startup in late 2004. Bellavista is expected to produce 60,000 oz. annually over seven years at a total production cost of US$177 per oz. Despite the news, Glencairn was off 4, at $1.

Partners Bema Gold and Wolfden Resources announced the discovery of two gold shoots near their Twin Lakes West zone on the Monument Bay property in Manitoba. The so-called Seeber 136E zone returned upwards of 37.8 grams over 3 metres, whereas the best result from the Seeber 139E zone was 14.9 grams over 2.3 meres. The former is associated with the B horizon, and the latter, with the C horizon — two of three known to exist on the property. Recent drilling also cut a new vein east of the main Twin Lakes zone, with upwards of 10.3 grams reported over 0.3 metre. Despite the results, Bema ended the period at $4.58, for a loss of 27, and Wolfden, at $5.85, for a loss of 70.

Nickel surged ahead US72 in London to a morning fix of US$6.42 per lb. on Dec. 16. Nevertheless, producers were a mixed bag, with Inco slipping $2.37 to $46.40, Falconbridge rising 28 to $27.81, and Sherritt International gaining 72 to $6.87.