Copper proving profitable

The week of Feb. 23-March 1 saw the price of gold rise 60, to US$433.45 where it closed in the afternoon in London. The gold index fell 9.7 points to close at 205.42. The diversified metals and mining index rose 9.6 points to close at 315.54 points. The S&P TSX Composite Index was up 87.6 points, to end at 9,728.03 points.

Eight mining companies traded over 10 million shares each.

EuroZinc Mining led the way in volume and rose 6 to close at 92 on a volume of 17.6 million shares. The company reported 2004 year-end operating results from its Neves Corvo mine in Portugal. Total production of contained copper in concentrate was 95,687 tonnes, or about 211 million lbs. copper, which was produced at a cost of US60 per lb. The mine had a net profit of US$80.5 million.

Shore Gold closed 93 higher at $5.28, with 16.8 million shares trading hands. The company reported year-end results that included diamond results from 20,000 tonnes of kimberlite bulk-sampled from its Star kimberlite. The sample grade stood at 0.14 carat per tonne. The diamond value of a 3,000-carat parcel recently produced an average sample value of US$110 per carat.

Placer Dome was down $2.25 to close at $20.95. Placer reported earnings of US$39 million, or US9 a share, in the fourth quarter of last year, down US$42 million, from the same period a year earlier. The company produced 10% less gold (927,000 oz.) than during the fourth quarter of 2003.

Goldcorp reported that, as at the end of February, it holds the tenders for 82% of Wheaton River Minerals shares. The remaining 18% will be acquired on the same 4:1 (Wheaton shares for each Goldcorp share) basis. Ian Telfer was appointed CEO of Goldcorp. Wheaton River closed down 14 at $4.13 on a volume of 20 million shares. Goldcorp shares fell 57 over the period to close at $16.55 on a volume of 12.8 million shares.

Some impressive drill intersections from behind the Levack No. 2 nickel-copper mine shaft, near Sudbury, Ont., sent shares of FNX Mining and 25% partner Dynatec soaring during the report period. The best result runs 26.2% copper, 3% nickel, plus 4.2 grams platinum, 9.8 grams palladium, and 0.45 gram gold per tonne over 3.1 metres. FNX ended 34% to the good at $7.52 with 8.3 million shares traded, while Dynatec gained 22 to make $1.22 on a volume of 12.3 million shares.

Hudbay Minerals rose 65 to close at $4 on a volume of 11.4 million shares. The entity now known as HudBay purchased Hudson Bay Mining & Smelting from Anglo American on Dec. 21, 2004. It is moving its head office to Winnipeg from Toronto, although it will continue to have a corporate office in Toronto.

Fronteer Development was up 66, or 24%, to close at $3.41 on a volume of 3.7 million shares. It reported that review of data from its 50:50 Michelin uranium property joint venture with Altius Minerals shows significant potential to expand the resource.

Southern Cross Resources closed at 99, down 11.6%, on a volume of 2.6 million shares. The company reported that it had identified drill targets, in conjunction with its joint venture partner Pitchstone Exploration, following geophysical surveys flown over their eastern Athabasca Basin properties in Northern Saskatchewan.