STOCK MARKETS — Juniors add little to record-breaking week

The Toronto Stock Exchange began and finished the past week at record levels, though mining stocks contributed little to the cause. The TSE 300 composite index rose 1.19% during the report period ended Nov. 26, finishing at 5,975.56 despite a mid-period drop to 5,917.80.

The Canadian dollar was virtually unchanged for the week against its American counterpart, closing at US74.5 cents. The loony beat up on most other major currencies, notably the Swiss franc, which fell more than 2 cents to finish just above par at $1.04 per franc. The German mark fell almost as much, down 1.7 cents to 88 cents.

The precious metals markets followed the gold price down, as the TSE’s gold and precious metals sub-index dropped for the second week in a row following a 700-point rally in early November. The index lost 74.14 points (or 0.64%) to close the period at 11,421.91. The price of gold fell a whopping US$4.65 to US$373.95, after losing nearly as much ground in the previous week.

Silver fell 16 cents, hitting $4.74 per oz., while platinum followed gold’s lead and dropped $5.75 to close at $377.75.

Bre-X Minerals was hit hard this week, dropping $1.90 to close at $20.35, with more than $337 million worth of shares changing hands. The company, meanwhile, struggled to retain control over its massive Busang gold deposit in Indonesia in the face of government pressure to cut a deal with Barrick Gold.

Barrick topped the value-traded list for the period, with nearly $420 million in share transactions, as it rose $2.30 to $39. The company has become the clear front-runner for control of the Busang deposit.

Over at the Montreal Exchange, Bresea Resources dropped $2.05. That company holds a 23% stake in Bre-X.

Placer Dome lost $1.35, dropping to $33.30. It became clear, during the period, that the company was no longer in the running for control of Busang.

Volume was high, however, with nearly 4 million shares crossing the floor.

Shares of Bema Gold fell 70 cents to $6.75 after analysts visiting the company’s Aldebaran copper-gold project in Chile found that the operation has its share of challenges, notably the high altitude of the deposit, as well as its depth and low grades.

Base metals enjoyed a relatively strong week, with nickel and copper gaining 11 cents and 6 cents, respectively, while lead and zinc remained unchanged.

The TSE’s mining and metals sub-index climbed 43.66 to close the period at 5,464.04, for a gain of 0.81%. Inco took its usual seat among the top traders, gaining $1.50 to close at $46.30, with $132 million worth of trades being made.

Yukon base metal miner Anvil Range was the big loser, however, as the closing of its Faro mine sent its share price into a freefall. The stock dropped $4.55 for the week, closing at $1.45 for a loss in value of 76%.

Colony Pacific Explorations shares more than doubled in value over the period, rising from $1.55 to $3.45. The company has thus far acquired three properties on the Indonesian island of Sumatra as a result of a “strategic alliance” with Inco.

Montreal-listed Continental Resources lost a third of its stock value, falling to 60 cents from 88 cents. The company recently reached an agreement with Orissa Mining of India for 300 million tonnes of bauxite deposits.

Continental and OMC will enter into a joint-venture operation, with Continental owning 51% of the deposits and OMC, 49%.

Potash Corp. of Saskatchewan saw its shares top the $100 mark during the period, surging to $101.15 from $7.35. The company recently reported third-quarter income of $46.8 million (or $1.03 per share), which is 103% higher than last year’s third-quarter earnings of $23.1 million (53 cents per share). The quarter was favorably affected by record potash sales volumes, improved phosphate prices and the addition of the White Springs phosphate operation, which was purchased in the last quarter of 1995.