Resource stocks mixed as broad markets gain

The Toronto Stock Exchange Composite index coasted through the Oct. 23-29 report period, rising a mere 3.15 points to finish the week at 6,294.81.

Gold was up US$3.75 in overseas markets, landing at a London morning fix of US$317.15 per oz. on Oct. 30. In step with their product, the golds edged ahead 1.05 points to 168.16.

Barrick Gold squeaked by with a gain of 4 on news it had earned US$25 million less in the third quarter than in the corresponding period of 2001. The shortfall reflects lower head grades and recovery rates at several operations, which Barrick says are now under control. The major ended the period at $23.49.

Iamgold and Repadre announced their intention to merge in an all-share deal worth $340 million. At the period’s end, Iamgold followed that up with the release of third-quarter financials that showed it to have earned only as much as a year earlier, despite a US$3-million climb in revenue. Iamgold finished the period 22 weaker, at $5.08, whereas Repadre ended 65 stronger, at $7.85.

Richmont Mines jumped 81 to $5.59 on news it had chalked up its second consecutive profitable quarter. The junior earned $4.3 million in the July-to-September period, and cash flow rose by $1.5 million to $6.5 million.

Also up was Etruscan Resources, adding three pennies to finish at $1.28. The African Development Bank has approved a US$12.5-million loan to advance the Samira Hill gold project in Niger, in which Etruscan owns a 40% stake. Semafo, which also holds 40% and will raise the remaining US$26 million needed to achieve production, failed to move on the news, staying firm at 51.

The TSE’s Diversified Metals and Mining Index rose 1.47 points to finish the period at 123.92. By the morning of Oct. 30, London metal traders had pushed nickel up a nickel to US$3.27 per lb., while keeping lead, copper and zinc unchanged from a week earlier.

Noranda slumped 48 to $14.52 as it announced its intention to sell some non-core assets. The news follows a disappointing third quarter and may see the wholly owned American Racing Equipment unit sold.

Also down were Teck Cominco B-series shares, which slipped 4 to $11.35. Despite the loss, the zinc miner pulled in $5 million during the third quarter — a considerable improvement over its $105-million loss a year earlier, when $598 million in writedowns were recorded.

Among the gainers, Inmet Mining jumped 27 to $5.02 as it announced quarterly earnings of $3.7 million, or $3.1 million more than last year. Higher metal prices and a stronger showing from its Pyhasalmi copper-zinc mine in Finland are behind the turnaround.

Also up was Ivanhoe Mines, which reported some its best intersections yet from the Turquoise Hill copper-gold project in southern Mongolia. One of the more spectacular intersections is 638 metres grading 1.61% copper and 0.07 gram gold per tonne. Ivanhoe climbed 41 to $2.96.