STOCK MARKET — Toronto composite index recovers strength as index rises — Base metals fare well; signs of life on the Bre-X Minerals front

Rebounding from a 2-week slump, the Toronto Stock Exchange 300 composite index gained a healthy 111.82 points (or 1.9%) over the report period ended April 22 to close at 5,855.37. Due in part to the week’s lull in Bre-X trading, the week was fairly sedate. Nearly 65 million shares crossed the floor on April 21.

The Canadian dollar gained some ground over its American counterpart, climbing 18 basis points against the greenback. On April 23, the Loony had a noon-time rate of US71.74 cents. The dollar was also up against other major foreign currencies, with the exception of the Deutschmark.

The TSE’s gold and precious metals sub-index was down again, slipping 15.97 points (or 0.2%) to end the week at 9,019.22. The yellow metal was down 0.75 cents on the London Metal Exchange, with a morning spot price on April 23 of US$340.70 per oz. Platinum was up $10 to US$375 per oz., while silver shed a penny to trade at US$4.72 per oz.

Die-hard Bre-X Minerals shareholders enjoyed a bit of a respite over the week. The issue climbed 17 cents on heavy trading of 16 million shares to finish at $2.40. Suffering the opposite effect was junior Francisco Gold, which dropped $2.50 to $21. The company recently closed a private placement of 1 million special warrants priced at $29.50 each. Proceeds from the offering will be used by the company to accelerate exploration activities on its Sauzal gold project and surrounding area in Mexico.

Activity among the senior and intermediate gold producers was mixed this week. Placer Dome was down 90 cents to $22.50. The company is reviewing a recent ruling by the Supreme Court of Venezuela that may challenge its ownership position in the Cristina deposit. Crystallex Resources, which is claiming rights to the deposit, was up 65 cents to $3.85. TVX Gold lost 25 cents over the week, while Euro-Nevada added $1.50 to its value over the week to finish at $42.25. Sister company Franco-Nevada was up a nickel, ending the report period at $67.30.

Both the highest and lowest percentage gains went to Montreal-traded issues. The value of Mimiska Mines jumped by 6 cents to 18 cents, for a 50% increase. Diadem Resources, however, fell 29% to $1.90, for a loss of 80 cents. Among the juniors climbing out of the penny-stock grouping were Birim Goldfields and Nelson Gold. Birim gained 35 cents, or 41%, to finish at $1.20, whereas Nelson added a quarter to close at an even buck.

Activity among the base metal issues was lively, on the whole, with the metals and minerals sub-group gaining 165.60 points to close at 5,214.00, for a 3.3% gain. With the exception of lead, which broke even, all base metals increased in value. Copper saw the biggest gain, at 8 cents, to close at US$1.13 per lb. Both nickel and zinc gained a penny, to close at US$3.31 and US57 cents, respectively. Lead traded at US29 cents per lb.

With the exception of Cominco, most base metal producers benefited from the rise in copper prices. Rio Algom came out as the week’s biggest winner, gaining $3.45 to finish at $34.85. Inco was up $1.35 to $44.80, whereas long-time competitor Falconbridge climbed 95 cents to $28.85. Teck B-series shares ended the week at $29.30, up 30 cents, and Noranda rose 70 cents, to close the week at $29.60. Cominco dropped 5 cents to close at $36.55.

Gains were made by both Cameco and Potash Corporation of Saskatchewan. The former rose $3.60 to $48, while the latter added $1.35 to close at $105.50.