STOCK MARKETS — Golds add oomph to New Year

Now that’s the way to kick off trading on the first day of a new year. The Toronto Stock Exchange 300 Composite Index, fueled largely by the gold sector, climbed 47.11 points on Jan. 4 to close our report week at a record 4,368.54 points.

The Gold and Silver Index gained 6.3% to close at 11,373.75. The rise in the index was powered by a single-day US$3.45-per-oz. increase in bullion prices to US$394.10. (Over the course of the report week, gold had gained US$8.35.) Senior producers, such as American Barrick, Echo Bay and Placer Dome hit new 52-week highs: Barrick to $40, Echo Bay to $19 and Placer to $35.50.

Placer formally completed the transfer of its Canadian assets to Placer Dome Canada. Canadian production of 815,000 oz. accounts for 45% of Placer’s total output. The Canadian gold mines include Dome, Campbell Red Lake, Detour Lake, Kiena and Sigma.

Pegasus Gold led the gold equity rally, rising $3.38 on Jan. 4 to close at $32.38. Franco Nevada rose $5 over the report week to close at $93.75, while Euro Nevada rose $3.50 to close at $49.50. Franco, by the way, was the TSE’s top net gainer last year, rising $64.63 through the year. Euro Nevada gained more than $31 per share during the year.

Some of the senior base metals continued basking in the glow of renewed investor interest. Cominco, for example, gained a dollar to close at $20.75, while Noranda added 88 cents to $26.13. Inco ranked among the losers, shedding 38 cents to close at $35.50.

The woes at Metall Mining’s parent, Metallgesellschaft AG of Germany, continue to cast a cloud over the Canadian subsidiary. In Germany, the parent’s top managers were to meet with creditors to find solutions to its financial problems. Metallgesellschaft lost roughly $264 million in the fiscal year ended Sept. 30. The loss had not been expected by the investment community and, as we mentioned in an earlier column, heads rolled at company headquarters.

In spite of all this, the Canadian subsidiary has managed to hold its own in the stock market. During our report week, it lost only 13 cents to close at $11.50. Metall investors can only hope the troubles of its parent don’t affect any of its very promising plays in the Northwest Territories and elsewhere.

Among juniors, Dakota Mining bounced back considerably from its mid-December lows of about $1.90. During the week, shares gained another 55 cents to close at $3. Investors might be viewing this company as a potential turnaround candidate.

Kinross Gold, now that it is amalgamating with Falconbridge Gold, climbed impressively during the week. It rose $1.15 to close at $4.55. In total, 2.9 million shares changed hands and the stock hit a new 52-week high of $4.60. Falconbridge Gold gained $1.15 to close at $4.50.

Central Crude started to gain the ground lost in late December by climbing 24 cents this week to close at $1.25. Channel Resources, another stock which has moved lately, gained another 20 cents, closing at $1.10. Only a couple of weeks ago, the stock was trading at about 65 cents.

Channel controls about 5,700 sq. km. of ground in the West African country of Burkina Faso.

Golden Rule has also been climbing of late. It rose another 10 cents this week, closing at $1.80.

Regional Resources hit a 52-week high of $2.20, a gain of 45 cents over the week. In the Conwest fold, Regional has a lead-zinc-silver property in the Yukon known as the Midway project.

Taking a look at the diamond stocks, Dia Met rose just a shade above $3 to end the week at $54. Aber, after posting impressive gains prior to the holidays, rose a modest 10 cents to $4.20. About 317,000 shares changed hands. SouthernEra, meanwhile, traded in a narrow range, closing the week at $5.88 — a gain of 13 cents.