Strong gains in the energy sector were the story on the Toronto Stock Exchange as Hurricane Katrina pushed up oil and gas prices during the report period Aug. 29-Sept. 4. The Toronto Stock Exchange composite index rose 213.48 points in the four trading days to go into the Labour Day holiday at 10,771.88.
The gains in the broad market were accentuated in the resource stocks, though the metal producers didn’t quite match the grease-pumpers’ 5.5% gain. The gold index was up 4.2% at 208.06, and the mining and metals group gained 3.5% to finish at 336.98.
All that heat in the equity and commodity markets didn’t go unnoticed offshore, with the Canadian dollar rising US6 to US84.18 in the same period.
The gold price warmed up through the week, although none of the precious metals saw anything like a “Katrina bounce.” The yellow metal finished at US$446.05 per oz. on Sept. 5, a gain of US$9.30 over its last London fix before the August Bank Holiday. Shares in both big producers made gains: Barrick Gold was up $1.14 at $32.46 and Placer Dome, at $17.98, rose 80.
That strength continued into the mid-tier, with Agnico Eagle Mines 73 higher at $16.25, Glamis Gold 81 better at $23.57, and Meridian Gold up 63 to $22.94.
The good times didn’t extend to most of the high-profile gold developers. NovaGold Resources was up 86 at $9.29, but Gabriel Resources managed only a 3 gain to close at $1.98, Southwestern Resources fell back 45 to $11.18, and Crystallex International was down 9 at $3. That slip reflected news that costs at the Las Cristinas project in Bolivar state, Venezuela, was looking at a 10% increase in capital costs and — thanks to increases in operating costs — a 2% decrease in reserves.
Base metal equities mostly moved higher, though commodity prices had moved little after the hurricane. Teck Cominco took the lead, with B-series shares rising $3.47 to $49.17 and A-series shares up $3.40 at $49.60. The other big diversified miner, Falconbridge, was up 80 at $28.20.
Among the copper miners, First Quantum Minerals rose $1.05 to $26.40 and Inmet Mining 68 to $19.58, while Aur Resources fell back 16 to $8.05.
Energy prices gave uranium-sensitive equities a boost. On the index, Cameco touched a new high of $62.18, finishing at $60.43, up $4.79. Off the index, Denison Mines-managed Uranium Participation Corp. found a new high at $7.11 before settling back to $7, a gain of 60. Warrants in the stock rose 26 to $1.61. Denison itself was up $1 at $17.73 and its warrants were up a buck at $8.50.
The enthusiasm filtered out to the uranium juniors, too. UEX was up 35 at $3.15, Pioneer Metals rose 8 to 39, and International Uranium jumped 73 to $7.96.
Off-index zinc producer Breakwater Resources was the most actively traded mining stock in the period, with 13.2 million shares changing hands. Breakwater announced a private placement to finance exploration on its mine-area properties in the Abitibi belt of Quebec.
Be the first to comment on "Miners try to keep pace with Oilers"