STOCK MARKETS — Gold remains stable amidst more Russian

One might have expected rather dramatic rumblings in the gold market this report week, when Russian President Boris Yeltsin’s tanks blasted holes in the Russian parliament buildings to end a week-old insurgency by communist sympathizers.

A mild flurry did occur in gold trading, but nothing dramatic. At week’s end on Oct. 5, gold had actually dropped a dollar to close at about US$353 per oz.

Agnico Eagle was up $1.25 to close at $18.12. This might be related to talks of an amalgamation with subsidiary Goldex Mines, which gained 50 cents to $5.50. American Barrick lost ground, trading down 63 cents to $29.63. Likewise, most of the other gold majors traded in a narrow range. Only Euro Nevada gained significantly — a $1.25 rise to $30.50.

Mentioned in this space last week, Arimetco International slid even further, shedding 29 cents to $1.51. (The 12-month high is $4.30.) Its cost-cutting measures have now been formally announced, as has its severing of ties with Breakwater and Dundee Bancorp (see separate reports on pages 11 and 14). The Russian crisis also powered the nickel market as the metal’s price rose on news that rebels had been attacked by the army. After the smoke cleared, it appeared President Yeltsin was still firmly in charge and, therefore, Russian nickel outflows will not dry up.

Nevertheless, the metal price gained and held a nickel to hover at US$1.91 per lb. Still, that is a cut-throat price for Canadian producers Inco and Falconbridge. Indeed, we’ve heard wild rumors out of the Nickel City (Sudbury, Ont.) — everything from a 6-month shutdown at Inco to the imposition of a 32-hour work week. Only time will tell how, or even if, Inco responds to depressed markets.

Its shares during our report week climbed nearly $1.50 to $25.12. One interesting item crossing the news wire this week, was a report that Denison Mines was involved in a massive-sulphide exploration bet in British Columbia (for details, see our report on Gagan Gold on page 3). A quick call to Denison Chief Bill James confirmed that, indeed, Denison and Placer Dome had optioned the property to the junior.

“We won’t be seeing any production this month,” quipped James. Denison, of course, is no longer the mining behemoth it once was. Its most significant asset is an arbitration case against Ontario Hydro over hundreds of millions of dollars Denison says the utility owes it for cancelling the Elliot Lake, Ont. contracts.

The case, before an arbitration board now, should wind up in November, James said. As to when the board might be expected to render a decision, he could not say. Denison shares linger at about the 20 cents level, well below their 44 cents 12-month high.

Consolidated Ramrod gained 75 cents, closing at $4.86. This was probably due to very good news (see front page) coming from the Damoti Lake ground. In on the same play, Athabaska Gold earned a spot on this week’s “most active” list. It gained 33 cents, on the strength of 2.5 million shares changing hands, to close at $1.50. CDN-listed Gitennes is participating in the play as well.

There was plenty of action in Asbestos Corp. shares over the week. From a low of about $46, the stock traded up to $56 by Oct. 1, fell $4 on only four trades of 200 shares apiece Oct. 4, and then gained $3 Oct. 5 on a meagre 100 shares changing hands. Over the week, it gained $8.

The TSE diamond stocks, meanwhile, were all off. Dia Met lost nearly $3 to close at just a shade under $47.50. This is nearly $20 below its 12-month high of $67.

SouthernEra lost 78 cents to close at $5.78, while Lytton Minerals lost 25 cents to close at $3.55. Its 12-month high was $6.75, an indication that the diamond market is well off its speculative highs and that, perhaps, the market now requires exploration results of a substantial nature.