Metals weigh on TSX

The Toronto Stock Exchange’s resources sector helped the broader market to a 237.92-point loss to 9,323.28 during the May 10-16 report period. The gold index plummeted 16.15 points, or nearly 9%, to a 52-week low of 168.05 points, as the yellow metal shed US$6.25 to US$419.25 per oz. Not to be outdone, the diversified miners plunged 30.4 points, or 10%, to 266.09, as the base metals finished lower nearly across the board.

Inco was the nation’s busiest miner with more than 11.6 million shares trading their way to a $3.19 loss to $43.50. The nickel giant’s shares suffered at the hands of the base metals, which were lower across the board on a strengthening greenback. Nickel was the lone base metal to advance.

Next in line were Placer Dome and Goldcorp, both dropping around 10% to finish at $15.63 and $15.43. The two have revived talks aimed primarily at sharing and reducing costs at their neighbouring Campbell and Red Lake mines in northwestern Ontario.

EuroZinc Mining finished just a handful of shares off the podium, falling 9 to 62 on nearly 9 million shares. The company’s first-quarter unaudited net earnings came to US$18.6 million, up from a year-earlier loss of US$287,000.

Gainers were few and far between during the latest report period. Ontex Resources stood out with a 4, or 20%, gain to 24. The company trimmed its first-quarter loss by more than a third to $129,435. The smaller loss is attributed to lower professional fees and a smaller loss from its 13.7% stake in Echo Energy Canada, which began producing natural gas in late 2004.

Also on the plus side was Freegold Ventures, up two pennies, or 28%, to 16. London-based Lonmin recently ponied up for a US$1.1-million summer exploration campaign on the Union Bay platinum project in Alaska. Lonmin can earn up to a 70% interest in the property from Freegold and Pacific North West Capital. For its part, Pacific North West shed a penny to 32.

The report period’s big percentage losers were: Apollo Gold, off 14, or 28%, to $36; North American Palladium, $1.57, or 24%, lower at $5.02; Diamond Fields International, which shed 7.5 to 27.5; and Western Canadian Coal, which finished 92 cheaper at $3.38.

Apollo Gold lost US$3.7 million during the first three months of 2005; that’s nearly double its year-earlier loss. Gold sales slipped by a third to 22,491 oz. on lower production from the Florida Canyon mine in northwestern Nevada.

North American Palladium’s first quarter ended $7.7 million in the red, compared with year-earlier net income of $6.1 million. Revenue between the two periods was more than halved to $26.2 million on lower production and palladium prices.

Subsequent to the period’s end, Diamond Fields said it would soon resume diamond mining in mining license 111 off the shore of Luderitz, Namibia, now that its mining vessel, DF Discoverer, has been refurbished. DFI also plans to raise $2 million in working capital via a non-brokered private placement of 8 million units at 25 apiece. A unit consists of one share plus half a warrant; each whole warrant is good for an additional share at 40 per share, for three years from closing.