Golds flat as broad market rebounds

The Toronto Stock Exchange’s S&P/TSX composite index advanced 27.56 points to end the April 2-8 report period at 6,438.71 as the U.S.-led coalition marched into Baghdad and raised hopes for a quick conclusion to the war.

Gold went the other direction, shedding US$5.90 to end the period with an afternoon fix of US$323.30 per oz. in London. The yellow metal recovered US$3.40 to end at US$325.50 per oz. in New York on April 9. Palladium’s slide levelled off, ending US$4 lower at US$171 per oz.; sister metal platinum dropped another US$22, to US$615 per oz., while silver climbed another US2, to US$4.42 per oz.

The gold producers escaped unhurt by the precious metal’s fall, as the gold index gained 0.1 of a point to reach 153.11 points. Kinross Gold was the most actively traded major bullion producer, finishing 36 lighter at $8.34 with more than 11.7 million shares on the go. Kinross plans to spend at least US$21 million replacing gold reserves this year. About half the money will go toward exploration and joint-venture properties; the other half will be spent on its own operations.

Placer Dome was the next major in line, with a 17 gain to $14.15 on 9.3 million shares; Barrick Gold rounded out the trio with a 19 loss to $22.21 on about half as many shares.

Eldorado Gold trailed only Kinross on a volume basis, as the issue fell 8 to $1.83. Eldorado recently announced plans for a US$12-million plan to deepen, by 370 metres, the shaft at the Sao Bento mine in Brazil. In the end, the shaft will bottom-out at 1,300 metres. Work will begin in the second quarter, with commissioning slated for late 2004.

Investors beat down shares in Queenstake Resources by 11, or more than 31% of their value, to 24. The junior axed a deal to acquire a half-stake in the Jerritt Canyon gold mine in northern Nevada from Meridian Gold and AngloGold. For its part, mid-tier producer Meridian gained 28 to finish at $13.70.

The diversified mining and metals index fell another 2.95 points, or 2.4%, to 120.59. The base metals themselves were a mixed bag: copper ended unchanged; tin, lead and zinc were lower; and nickel finished higher.

Noranda saw the most action among base metal miners, with more than 4.4 million shares finding their way 32 lower to $11.95. Cameco slumped $2.42, to $37.98. The uranium miner expects a shutdown of at least two weeks at its MacArthur River mine in northern Saskatchewan as it deals with flooding problems.

Most of the rest on the index showed losses. Standing out were Aur Resources, which took back 24 to make $3.75, and LionOre Mining International, up a penny to $5.25.

In the junior ranks, Northern Orion ended unchanged on 5.5 million shares. The company has been unmasked as Wheaton River‘s partner in a plan to split the US$180-million acquisition of BHP Billiton’s quarter-stake in the Bajo de la Alumbrera gold-copper project in Argentina. Wheaton gained a nickel to make $1.29.