Higher gold price buoys Toronto market

The Toronto Stock Exchange Composite Index yo-yoed itself 69.28 points higher during the Oct. 30-Nov. 5 report period, ending the week at 6,399.64 points.

Gold peaked mid-period at US$319.85 per oz. in London and finished the period at US$318.50 per oz. on the afternoon on Nov. 5. After dipping early on, the gold stocks tacked on 6.82 points to finish at 177.1.

Placer Dome was the most active gold miner with just short of 20 million shares trading $1.60 higher to $15.50. On Nov. 1, Placer extended, for the 12th time, its offer for AurionGold. At last count, Placer had a 78% stake in the Aussie producer; it needs 90% to demand a trade-in.

Placer is seen as one of few companies to fit the mould of the company that Goldcorp has admitted to stalking. In its quarterly report, Goldcorp says it had taken a 4% stake (worth about $121 million) in another gold producer. Goldcorp shares grabbed 53 to hit $16.08, while Meridian rose $1.49 to $27.30.

Wheaton River Minerals made a rare appearance on the most-active list, but ended unchanged at 95 with more than 10.3 million shares changing hands. Wheaton has revived a deal to sell its the low-grade Bellavista gold project in Costa Rica to Glencairn Gold for US$250,000 in cash, plus 750,000 shares.

Thistle Mining jumped 8 to 53 thanks to record production of 18,840 oz. gold in October at the President Steyn operations in South Africa.

Agnico-Eagle Mines saw investors carve $2.40 off its share price after announcing plans to sell 12 million units at $13.90 apiece. Each unit consists of one share plus half a warrant. A whole warrant is good for one share at $19 over five years. Agnico shares settled at $19.12.

The Diversified Metals and Mining Index managed to scrape together just 0.52 of a point to reach 122.67. The base metals turned in mixed results on the London Metal Exchange, with aluminum, copper, lead, and zinc making headway. Inco saw the greatest value traded, with more than 8 million shares marching 75 lower to $29.92 apiece.

Sherritt International lost 4 to $4.21 after posting a third-quarter net loss of $1.1 million on revenue of $207.7 million. The loss came compliments of a $29.8-millliion writedown on its investment in Aussie laterite nickel miner Anaconda Nickel.

On Nov. 6, Sherritt’s takeover quarry, Fording, urged shareholders to reject the latter’s $1.5-billion bid. Fording also announced it is pursuing competing bids. The coal miner climbed 20 to $32.60.

Two other base metal miners saw their third-quarter earnings more than halved. Aur Resources‘ profit came to $2.9 million, as copper production slipped by nearly 7 million lbs. to 55.9 million lbs. The stock slid 27 to $2.85. Uranium miner Cameco finished $1.12 lighter at $32.95. Cameco’s earnings totalled $7 million, owing to lower production at the Kumtor mine in Kyrgyzstan, where a pit-wall failure earlier this year is impeding production.