Golds enjoy relief from usual slump

The plunging technology stocks led the Toronto Stock Exchange downward over the report period Feb. 21-27, even as most other sectors moved higher. The TSE 300 composite index lost 170.99 points, or 2.1% of its value, to finish the five trading days at 8,065.69.

The golds, traditionally sad-sacks, were among the hottest of the industry sectors, as the TSE gold and precious minerals sub-index added 447.35 points to finish at 4,432.66. The 11% gain was the sharpest upward move the golds had made in a year, but the wheels came off on Feb. 28 as the index lost about 2%.

Placer Dome was the volume leader at 12.8 million shares as it gained $2.05 to close at $14.80. Barrick Gold traded 9.8 million to close at $24.90, up $2.70 over the five trading days.

Mid-tier producers also rose, with TVX Gold up 26 at $2.45, Meridian Gold $2.14 higher at $11.25, and Goldcorp up $1.40 at $10.50.

Years of toil at the LaRonde mine in Quebec are finally starting to pay off for Agnico-Eagle Mines. The junior announced that resources are up 28% over the past year to 7.8 million oz. gold plus silver, copper and zinc, making LaRonde the largest gold deposit in Canada. Investors gave a strong thumbs-up to the news, driving Agnico shares $2.15 higher to $10.10.

In the spotlight once again, Namibian Minerals announced it had voluntarily placed some subsidiaries into provisional liquidation. The decision brought its marine operations to a temporary halt, which may become permanent if badly needed funds are not raised quickly. Namibian dropped 47 to $1.32 before trading was halted on Feb. 23. Trading resumed temporarily on Feb. 27, when shares sank another 92 to 40. The combined losses translate into a 77% loss in Namibian’s market value.

The TSE metals and minerals sub-group was down 77.97 points at 4,087.19 for a loss of 1.9%. The heaviest trader among the TSE issues was Alcan Aluminium, which was off $1.78 at $56.75. Next came mid-tier nickel producer Sherritt International, which was down 10 at $4.20.

Inco slid 11 to close at $27 despite firmer prices and news that the Newfoundland government may be ready to return to talks over the future of the Voisey’s Bay nickel deposit. Published reports suggested new premier Roger Grimes may soon meet with Inco to discuss the company’s 1999 proposal to build a hydrometallurgical plant in Newfoundland to process nickel concentrates from Voisey’s.

Boliden announced it was selling its Chilean interests, the Lomas Bayas copper mine and the Fortuna de Cobre project to Noranda and Falconbridge for US$177.1 million less the mine’s debts of US$112.7 million. Boliden also gets a further US$15 million if the buyers retain Fortuna de Cobre for more than five years. The whole exercise means a writedown of US$375 million on Boliden’s books.