STOCK MARKETS — Base metals beaten down again on TSE — Broad market heads nowhere but golds finally move higher

The Toronto Stock Exchange was uninspired during the trading period Aug.

20-26, losing 17.97 points to close Aug. 26 at 6,697.91. The base metals, oil and gas, and real estate sectors were the major drags on the market, while the gold issues, of all things, had a good week. Market volumes were moderate to heavy, even though there was little movement in prices.

The Canadian dollar moved little as well, rising 10 basis points against its U.S. counterpart to trade at US71.85 cents at noon on Aug. 27. The week marked another aggressive recovery by the European currencies, which moved higher against the loony and greenback, and soared against the Japanese yen.

Gold improved somewhat over the week, picking up $3.30 for a price of US$325.30 per oz. at the London dealers’ fix on Aug. 27. Silver also looked brighter, adding 15 cents to US$4.66 per oz. The platinum group suffered from a Russian announcement that exports of the metals would soon resume; consequently, platinum slipped $1.50 to US$405 per oz. and palladium fell to US$194 per oz., down $2.

The TSE gold and precious minerals sub-group added 33.25 points over the trading period to close at 8,415.51. The volume leader was TVX Gold, 30 cents higher at $7.35, with 3.1 million shares traded. Also positive was Barrick Gold, which was up 85 cents to $32.70, and Franco-Nevada Mining, up 70 cents to $33.75.

Unchanged were Cambior at $14.80, Kinross Gold at $6.10, and Campbell Resources at 95 cents. Placer Dome fell a nickel to $24, and Euro-Nevada Mining was down 90 cents at $21.60.

The base metals were quietly upbeat, except for nickel, which lost 8 cents over the report period to close at US$2.93 per lb. in the Aug. 27 London Metal Exchange ring. Lead, adding 2 cents to US29 cents, and copper, picking up 1 cents to finish the report period at US$1, were both modestly improved, and zinc continued its recent strength, rising 1 cents to US77 cents.

Base metal miners, on the other hand, were sunk in gloom. The labor dispute at Falconbridge’s operation in Sudbury was settled, but the shares fell $1.05 to $26.45. Inco was off $1 to $39.05.

Cameco was down $2.60 to $49.60, possibly over worries about a declining uranium price, and both copper-sensitives declined as well, with Rio Algom off $2.20 to $32 and Inmet Mining 30 cents lower at $7.35.

Among the Toronto juniors, Scintilore Explorations added 28 cents to close at 56 cents, as speculation mounted over possible action in the company’s suit to gain a royalty interest in the Hemlo gold deposits. International Skyline Gold doubled to 50 cents; the most recent news was from the company’s Bronson Slope copper-gold prospect in British Columbia in late July, when Skyline acquired two adjoining properties from Prime Resources.

On the Montreal Exchange, Cristobal Resources rose 21 cents to 59 cents, with investors possibly anticipating news from the company’s Luminaria gold prospect, where surface samples had graded up to 17.8 grams gold per tonne.

Channel sampling was under way last month, and the company was also planning a drill program.

Another Montreal stalwart, Murgor Resources, added 23 cents to close at 68 cents. Drilling is under way at its Barry Twp. prospect in Quebec, and the company reported”encouraging” gold values at its Urban Twp. project, also in Quebec. At properties in the Mishibishu belt of north-central Ontario, several surface showings were reported to have returned high gold grades.