STOCK MARKETS — Base metals add power to TSE

The Toronto Stock Exchange’s composite 300 index rose 1.8% during the trading period Jan. 8-14, hitting a record high of 6054.86. The previous record was 6018.65, set on Nov. 28, 1996. It was the sixth-busiest day on record in terms of value traded.

The 108-point jump in the TSE 300 was partly reflected in base metal stocks, while the still-falling price of the yellow metal kept gold stocks fairly steady.

The Canadian dollar kept its momentum going during the period, climbing more than half a cent to hit US74.52 cents at noon on Jan. 15. It also gained on all other major currencies, including a 3 cents gain on the British pound and more than a cent apiece on the Swiss franc and German mark.

The price of gold continued to plummet, albeit at a slower rate than in recent weeks. Over the reporting period, it dropped $3.35 to hit US$352.45 per oz.

Spot platinum remained steady at US$359 per oz. and silver shaved off a penny to close the period at US$4.65 per oz.

The TSE’s gold and precious minerals sub-group climbed slowly over the period, then dropped back on Jan. 14 to finish up just 33.55 points (0.3%) at 10,612.42.

The Busang gold saga continued unabated last week, and all parties involved saw large numbers of their shares cross the TSE’s trading floor.

Gold finder Bre-X Minerals gained $2.10, closing at $23.35 with 6 million shares traded, while still-unsuccessful pursuer Barrick Gold shed $1.10, to close at $35.45 with an equal trading volume. Not yet out of the running is Placer Dome, which added 50 cents to its share price to close at $28.10, with more than 7 million shares traded.

The above three companies were ranked one, four and two, respectively, in value of stock traded last week. At presstime, the Busang situation was unresolved, with Placer Dome having just entered the fray with a merger offer for Bre-X.

TVX Gold bounced back somewhat after news of its decision to close the high-cost Casa Berardi gold mine in Quebec hit the market the previous week.

Having dropped $1 in the Dec. 30-Jan 7 period, TVX recovered 25 cents in the Jan 8-14 period, indicating that the issue does not depend on Casa Berardi.

The same cannot be said for TVX’s minority partner at Casa Berardi, Golden Knight Resources. The thinly traded Teck affiliate continued to fall, losing 75 cents to close at $4.40, after having dropped $1.45 in the previous week.

Still basking in the glow of its startup at the Kumtor gold mine in Kyrgyzstan, Cameco had a great week, posting a $3.20 gain to close at $58.70.

Shares of Fairlady Energy, which holds several gold properties in northwestern Quebec, added 45% to their value, jumping to 32 cents from 22 cents.

Star Resources, which is exploring for diamonds in Arkansas’ Crater of Diamonds State Park, lost one quarter of its value, dropping to 24 cents.

Sonora Gold lost 9 cents, to close at 30 cents. In California, the company recently assigned the former Jamestown mine site property to the local county government, thus enabling it to become free of reclamation obligations.

Each of the spot prices of lead, copper and zinc gained a penny over the period, climbing to US32 cents, US$1.09 and US49 cents per lb., respectively.

The week was even better for nickel, which gained 4 cents, to close at US$3.24 per lb.

The TSE’s metals and minerals sub-group picked up 161.83 points to close the period at 5540.43, representing a 3% rise.

Leading the base metal stocks was Inco, which gained $2.35 to close at $46.75, with $157 million worth of shares changing hands. Noranda also had a strong, busy week, rising $1.50 to $32.65, as did Falconbridge, which climbed 65 cents, to hit $30.15. Teck bucked the trend, dropping 85 cents, to $30.15.