Golds falter as broad market shines

The Toronto Stock Exchange composite index gained 113.84 points over the May 21-27 report period to end at 6,840.24 points, its highest finish in nearly a year.

Junior Tahera was the period’s hottest mining issue, with nearly 18 million shares finding their way just a penny higher to 12. Public hearings over the environmental impact statement affecting Tahera’s Jericho diamond project in Nunavut will be delayed past the original, late-May date. The Nunavut Impact Review Board wants more time to allow for consideration of all environmental and socio-economic data.

Eldorado Gold was hot on Tahera’s heels, regaining 14 to close at $2.20 with just under 17.4 million shares on the go. The shares had slumped after the company scaled back production estimates for its Sao Bento mine in Brazil.

Overall, the TSX’s gold index failed to keep pace with the yellow metal’s rise, ending 1.98 points down at 166.85 points. Gold managed to tack on US$3.60 to end the holiday-shortened period at a London afternoon fix of US$371.40 per oz.

Canada’s big three bullion producers all saw heavy action, Kinross Gold led the way, grabbing 32 to make $9.39 with nearly 17.3 million shares traded; Placer Dome made 18 to hit $15.09; while Barrick Gold fell 20 to $24.85. Both Placer and Barrick saw about 8 million shares change hands. The latter recently reached an agreement with the Wiradjuri Condobolin Native Title Claim Group regarding development of the Cowal gold property in New South Wales, Australia.

Dogged by a lawsuit that won’t quit, Cambior fell a quarter, or nearly 13% of its value, to $1.72. The company is facing a revived US$2-billion class action suit launched on behalf of 23,000 people living along the Essequibo River in Guyana. The suit, filed in Guyana’s high court, is related to a 1995 tailings-dam failure at the Omai mine. The miner calls the suit “frivolous.”

The rest of the gold index inhabitants showed mixed results. On the plus side were Meridian Gold, up half a buck to $15.90, Agnico-Eagle Mines, $1.06 higher at $15.80, Goldcorp, which tacked on 22 to make $15.97, and Iamgold, a nickel stronger at $7.55.

Inco remained atop the base metal trading chart, jumping $1.88 to $27.43 on 9.5 million shares. Talks between Inco and the union representing workers at its Sudbury nickel operation broke off after workers called the new contract offer disappointing.

Other gainers on the diversified metals and mining index include Aur Resources, 11 higher at $3.41, Cameco, $2.73 to the good at $40.30, Noranda, 21 richer at $12.26, and Falconbridge, which gained 95 to make $16.75.

Off-index junior Thundermin Resources put in the best percentage gain, climbing 3, or 37.5%, to 11. Black Hawk Mining was next in line, adding the same to reach 12. Black Hawk recently posted a wider first-quarter net loss of $824,000, compared with a year-earlier net loss of $82,000.