Profit-taking grabs hold of broad market

Profit-takers went away happy as the Toronto Stock Exchange composite index dipped 24.76 points over the Jan. 7-13 report period, ending the week at 8,380.34.

Gold also reversed course, retreating US$3.50 to anchor itself at US$424.50 per oz. on the morning of Jan. 13. Following in their product’s wake, Barrick Gold slumped $1.53 to $28.12, Placer Dome dipped $1.40 to $22.59 and Kinross Gold fell 52 to $10.08.

The mid-tier darlings were mixed: Goldcorp dropped $1.93 to $18.16, Agnico-Eagle Mines rose a nickel to $16.55 and Meridian Gold sunk $1.60 to $16.99. Also taking a heavy hit was Glamis Gold, which fell $1.71 to $21.15.

North American Palladium was a notable off-index gainer, rising $1.28 over the period to close at $11.63; that brings its gain from April to about $8.55. The latest uptick coincided with a US$15-per-oz. gain in spot palladium and the company’s release of impressive results from its Lac des les mine in northern Ontario. The mill cranked out 83% more palladium in the final quarter of 2003 than in the same period a year ago. The jump reflects higher head grades, as well as more throughput and better mill-availability rates.

Also up was Queenstake Resources, which climbed two pennies to 83 despite announcing a production shortfall at its Jerritt Canyon gold mine in northeastern Nevada. Heavy snowfall and strong winds in the fourth quarter saw the junior produce 13,179 fewer ounces than in the previous period, which, in turn, caused operating costs to jump by 21%.

Base metal producers were down across the board. Suffering the biggest losses were: First Quantum Minerals, down 11.6% in value, or $1.71, at $13.04; Noranda, down 10.4%, at $19.12; and Teck Cominco B-series, down 8.7%, or $1.95, at $20.50.

Junior Constellation Copper was the most active issue, rising 1.5 on a volume of roughly 78.7 million shares. The junior copper explorer intersected as much as 47.2 metres of oxides grading 1.59% copper beneath the known deposit at its Cashin property in Utah. Also, the company has inked a deal to acquire the Hinoba-an copper deposit in the Philippines. Constellation finished at 13.5.

TVI Pacific closed 5 higher as about 55 million shares changed hands, making it the second-most active issue. The company released an updated resource estimate at its Canatuan polymetallic project in the Philippines, and Lafayette Mining of Australia has begun construction at the Rapu Rapu polymetallic project, also in the Philippines, in which TVI retains a 2.5% net smelter return. The company’s Chinese subsidiary has been incorporated for exploration and development, making it the first foreign-owned subsidiary behind the Great Wall. TVI ended at 33.

Metallica Resources rose 3 to $2.33 as the company awarded a mining contract at its Cerro San Pedro gold-silver project in Mexico. Production is expected to get under way by year-end and average 120,000 gold-equivalent oz. in each of the following eight years.