Precious metals rise in tandem on eastern markets

Precious metals took the spotlight during the March 20-26 report period, with gold, silver, platinum and palladium all rising in London bullion markets.

Gold appreciated an impressive $4.80 over the five trading days to plant itself at US$297.50 per oz. on the morning of March 27. Meanwhile, silver jumped 12 to US$4.64 per oz.; platinum, $2 to US$516 per oz.; and palladium, $10 to US$390 per oz. By the afternoon, gold had tacked on another $1.50, though platinum and palladium had each fallen slightly.

Canada’s major producers of the yellow metal were up: Barrick Gold rose 21 to $28.75; Placer Dome climbed 74 to $18.70; and Kinross Gold added 21 to finish at $1.90 on a volume of 25.8 million shares, making it the most active mining issue north and south of the border.

Surprisingly, Canada’s only primary palladium miner, North American Palladium, was off 30, at $9.20. The producer is a far cry from its 52-week high of $17.15 but still on the north end of its 52-week low of $5.55.

Among the mid-tier producers, Goldcorp leaped $3.30 to $27.85; Meridian Gold sprang $2.40 to $21.85; and Agnico-Eagle Mines jumped $2.25 to $20.95. On March 21, Goldcorp shareholders agreed to a 2-for-1 split in the company’s common stock, though the actual date on which this will occur remains unknown. Meanwhile, Meridian has closed an equity deal with junior Gold Hawk Resources, which is listed on the Canadian Venture Exchange, as a means to explore that company’s Machacala gold-silver property in Peru.

Overall, the gold and precious metals sub-group had a stellar week, rising 239.96 points, or 4.1%, to finish the period at 6,051.05.

The base metals may not have fared as well, but as a group they gained 1.6%, or 73.74 points, ending the period at 4,679.93. The sub-group rose despite of a $1.48 loss by heavyweight Alcan, which coincided with a board shake-up. Among the new appointees is Yves Fortier, who was made vice-chairman; he will also act as chairman at the upcoming annual meeting.

Nickel slipped 7 to US$3.04 per lb., dragging major producers down with it: Inco fell 30 to $30.80; Falconbridge slipped a nickel to $17.45; and mid-tier producer Sherritt International was down 10 to $4.85.

Inmet Mining gained 55 to $5.30 as it denied reports it was participating in an auction for Outokumpu‘s Tara zinc mine in Ireland. Inmet recently bought the Finnish miner’s Pyhasalmi copper-zinc mine in central Finland.

Among other producers: Noranda rose 45 to $18.40; Teck Cominco‘s B series slipped 24 to $14.81; Boliden slipped 10 to $6.80; First Quantum Minerals edged ahead 3 to $2.93; and Breakwater Resources slipped 2 to 40.

Junior Twin Mining fell back 3 to 49 despite announcing the discovery of several gem-quality stones at its Freightrain kimberlite prospect on the northern tip of Baffin Island. However, the implied average grade from mini-bulk samples is only 0.2 carat per tonne.