Hit by profit-taking, the Toronto Stock Exchange 300 index retreated 2.3%, or 215.89 points, during the May 3-9 report period. The broad market ended the week at 9,294.39.
Gold climbed 20 over the period to trade at a London morning fix of US$277.80 per oz. on May 10. Similarly, silver edged ahead 3 to US$5.03 per oz., whereas platinum and palladium each traded lower.
Canada’s major producers all lost ground: Barrick Gold fell 40 to $27.25; Placer Dome dove 50 to $12.80; and Kinross Gold slipped 6 to $1.89. Kinross lost US$7.8 million in the first quarter, owing to a combination of stagnant gold prices, lower output and higher costs.
Bucking the trend was Franco-Nevada Mining, which rose 40 to $17.95. Thanks to the Ken Snyder gold mine, which entered commercial production in early 1999, the major’s earnings jumped 42% in fiscal 1999 to $97.6 million, while revenue leapt 61% to $218.2 million.
Iamgold climbed 53 to $3 on news that it had boosted its treasury to US$72.7 million. A portion of the funds are earmarked for the developing Yatela gold deposit in Mali, in which Iamgold can earn a 40% interest. Yatela lies nearby the joint-ventured Sadiola Hill mine, in which the junior holds a 38% stake.
In step with stronger copper, lead and zinc prices, base metal producers gained ground: Cominco soared 95 to $23.75; Rio Algom jumped 90 to $18.45; Noranda climbed 25 to $14.75; and Teck‘s B-series rose 15 to $11.30.
Inco, which rose 75 to $24.60, said it is confident it can hammer out a new agreement with hourly workers at its Ontario division before a May 31 deadline. Representing up to 3,330 workers at the nickel giant’s Sudbury and Port Colborne operations, the Steelworkers union wants a contract reflecting current high nickel prices. However, the company is hesitant to cut a deal based on what it calls fluctuating prices. Falconbridge was up 70 to $23.15 over the week.
In the junior sector, Miramar Mining climbed 13 to 81 on news of multi-ounce gold grades being intersected at the Hope Bay gold project in Nunavut. Miramar and partner Cambiex Exploration are infill-drilling the Boston and Doris deposits in hopes of advancing either one to production. Cambiex closed down 12 at 45.
Virgina Gold Mines fell 6 to 66, only to rise 6 on May 10. On May 9, the company announced the discovery of two promising polymetallic sulphide zones at its Gayot project in northern Quebec.
Tiomin Resources gained a dime to end the period at 65. The junior announced a positive feasibility study for its Kwale heavy mineral sands project in Kenya, and expects to begin construction in the first quarter of 2001, followed by commercial production in late 2002. Pangea Goldfields, which holds a 20% net profits interest in the project, dropped 27 to $3.90; the company recently released positive preliminary metallurgical results from its joint-ventured Tulawaka gold project in Tanzania.
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