STOCK MARKET — TSE climbs despite light trading and weak metal markets — SouthernEra knocks ’em dead following African success

Despite a slow week in trading and depressed metal markets, the Toronto Stock Exchange 300 composite index rose 126.24 points to finish the report period ended Sept. 9 at 6,799.52.

The Canadian dollar lost nine basis points against its U.S. counterpart, trading at 72.21cents at noon on Sept. 10. The loony continued to remain strong against the major European currencies.

On the morning of Sept. 10, gold was fixed on the London Metal Exchange at US$321 per oz. for a fall of an even dollar. Silver rose 11cents to US$4.74 per oz., while platinum gained $15.75 to trade at US$423.25 per oz. Palladium similarly gained in value, trading at US$187.50 per oz. for an increase of $1.50.

The TSE gold and precious metals sub-group continued its weekly slide, plummeting 192.96 points, or 2.4%, to close at 7,958.21.

SouthernEra Resources became the choice stock of the week, rising $3.85 to $17.05. The diamond explorer received good news from the Luo fluvial and floodplain gravels projects in Angola, in which the company holds 10% and 35% interests, respectively. In the middle of the report period, SouthernEra announced that 264 diamonds had been uncovered at the combined projects within two days of production, totalling 1,135 carats. The diamonds averaged 4.41 carats per stone, which brings to 15,700 carats the total amount recovered from the site.

The findings follow earlier news that 333.63 carats from 107 tonnes had been recovered from the M-1 kimberlite pipe, which occupies the Klipspringer property in the northern region of South Africa. Klipspringer is a joint venture between SouthernEra and South America-based Rangold.

Crystallex remained the most active junior stock, with 4.3 million shares passing hands. The issue climbed a further 60cents from the previous report period to $8.

Wilanour Resources had the highest percentage gain. The increase of 176% follows news that Goldcorp is bidding for the remaining minority interest in the company. The issue closed at $1.38, for a gain of 88cents.

Barrick Gold took the most actively traded spot, deflating $1.20 to $30.15.

The loss comes on the heels of the company’s announcement that it will be closing five mines in northern Chile and the western U.S. and that the closures will result in an after-tax writedown of US$385 million. Following suite, Placer Dome dropped 75cents to $22.30, whereas TVX Gold rose 5cents to $7.20 on heavy trading of 3.4 million shares.

Euro-Nevada Mining managed to regain the momentum it had lost in the previous week, climbing 55cents to $21. The market was less favorable on sister company Franco-Nevada Mining, which shed $1.55 from its value, finishing the week at $31.45.

The TSE’s metals and minerals sub-group was in sinc with the golds, losing 107.86 points, or 2.2% of its value, ending at 4,861.79. Metal prices remained stagnant, with zinc showing the only sign of activity by dropping a penny to US75cents per lb. Nickel traded at US$2.97 per lb., whereas copper and lead were valued at US97cents and US29cents per lb., respectively.

Resource giant Noranda took first place in volume traded, with 3.6 million shares crossing the floor. The issue closed at $26.45, for a loss of 80cents.

Suffering an equivalent loss was Inco, which finished at $37.05.

Other base metal producers faired little better. Rio Algom dropped $1.25 to $30.75; Falconbridge lost $1.10 to finish at $24.55; and zinc producer Cominco managed to remain steady, closing at $36.50.