STOCK MARKETS — Gold price sends TSE issues soaring — Base metal stocks just as flat as

the broad market

As a wheezy Toronto Stock Exchange staggers to its 1997 finish line, the gold issues are showing signs of life, propelled by a modest recovery in the price of the yellow metal.

That muted ‘moo’ traders heard over the trading period Dec. 22-24 came from the world’s only miniature bull, who pulled the TSE 300 composite index a full 4.16 points higher. The composite closed at 6,539.50 on Christmas Eve, in moderate trading.

Currency traders kept heading for the safe haven of U.S. dollars over the same period, sending most Western currencies to new lows against the greenback. The Canadian dollar was no exception, falling 23 basis points in the three trading days to close at US69.48. The Bank of Canada bought Canadian dollars to resist the slide, but until the Loony falls behind the major European currencies the Bank is unlikely to tighten interest rates further.

Gold prices were firmer, with the yellow metal fixed at US$293.90 per oz. at the London bullion dealers’ meeting on Dec. 29. It had spiked to US$296.10 on Christmas Eve — in the new world of gold, four bucks in one day qualifies as a spike. Silver headed higher, too: the price jumped to US$6.26 on Dec. 24 and stayed at US$6.24 after Christmas, for a gain of 18 over the 3-day period.

Platinum-group metals also appeared to have reached a bottom, with platinum $10 higher at US$364 per oz. and palladium up $13 at US$195. The TSE gold and precious minerals sub-group responded with three strong sessions, closing at 6,480.53 points on Dec. 24 for a gain of 7.5% over the period.

The golds have now put on 24.6% since reaching their 1997 low on Dec. 9.

Both Barrick Gold and Placer Dome were heavily traded, showing 6.7 million and 6.4 million shares moving in the five trading days Dec. 18-24. Barrick was $1.50 higher at $27.85, while Placer climbed 75 to $18.30.

Eldorado Gold, which announced a cash-conservation plan that will feature US$86 million in writedowns, rose 9 to close at 78. Eldorado announced that its hedging program had locked in an average price of US$353 per oz.

for 138,000 oz. in 1998, about two-thirds of the company’s production target for the year. The company’s average cash production cost is expected to fall to US$268 from this year’s US$281 and the break-even cost should decline to US$309 from US$346.

Other recovering gold issues included TVX Gold, up 65 to $4.75, Goldcorp, up 75 to $5.85, and Teck B-series shares, up 75 to $20.75. Euro-Nevada Mining added $2.50 to close at $20, while stablemate Franco-Nevada went the opposite way, sliding $1.35 to close at $28.60.

Base metal prices were lower again, with bellwether copper sliding another 2 to finish the reporting period at US77. Aluminum was 1 lower at US68, and nickel was down 2 at US$2.65. The TSE metals and minerals subgroup changed little, losing 4.12 points over the three trading days to close at 3,735.24 on Dec. 24. Most active over the five-day period of Dec. 18-24 was Westmin Resources, which is still waiting for a white knight to battle Boliden. Westmin was down another 5 to $5.45, only a nickel more than the Boliden offer. Boliden, meanwhile, closed 20 lower at $3.15.

Inco was off $1.25 to close at $24.75, but Inco VBN shares were $1.45 higher at $17.10. Sabres continue to rattle in Newfoundland, suggesting that the province may hold up approvals for the Voisey’s Bay nickel project in Labrador unless Inco guarantees that the nickel will be refined in Newfoundland.

Cameco recovered from recent price woes to close at $44, a full $3 higher, but the broad trend was downward: Cominco shed 35 to close at $20.65, Inmet was off 60 at $5.40, and Rio Algom was down 60 at $24.30.