STOCK MARKETS — Metal markets carry Toronto exchange

The Toronto Stock Exchange gained 150.41 points (or 2.4%) over the report period ended March 11 to close at 6,305.46 points. With the exception of March 10, trading volumes were heavy, with three of the days marked by trading volumes in excess of 110 million shares.

The Canadian dollar rose 24 basis points against the greenback, trading at US73.33 cents at noon on March 12. While the loony gained some leverage against the pound and the yen, it lost some ground to the other major European currencies.

Gold was down US$2.60 on the London bullion market over the report period, and was fixed at US$353.15 per oz. on the morning of March 12. Following suit, platinum lost US$1.50 to close the trading period at $382.50 per oz., while silver dropped to US$5.23 per oz. for a loss of 11 cents.

Reflecting gold’s demise, the TSE gold and precious minerals sub-group fell 96.46 points (or 0.87%) to close at 11,118.84 on March 11. While TVX Gold shares were off 15 cents to $11.35, Franco-Nevada Mining saw $1.90 added to its share value, closing at $64.95, and Teck B series shares rose 35 cents to $33.65.

The most heavily traded issue over the week was Montreal-listed Orex Exploration, which saw 11 million of its shares change hands. The issue closed the week at 30 cents, up 9 cents from the previous reporting period.

Placer Dome rebounded from last week’s fall, gaining 45 cents to close at $28.30. The company recently poured the first gold bar at the 68%-owned Musselwhite mine in northern Ontario, which follows last week’s successful commissioning of facilities for the 60%-owned Pipeline deposit in Nevada. In the previous report period, the issue dropped in partial reaction to an announcement by Crystallex International, which claimed ownership to a portion of the Las Cristinas property in Venezuela. With no word yet on the outcome of its claim, Crystallex fell $1.05 in heavy trading to close at $2.90.

Bre-X Minerals continued on its downward spiral, dropping 90 cents to $17.75, with 8 million shares trading. Barrick Gold also lost some weight over the week, falling $1.20 to $36.65.

The share price of International Precious Metals (IPM) dropped from a high of $20 to $10.50 as skepticism grew over the company’s Black Rock Extended project in Arizona. A mining engineer from the state department of mineral resources said the company has “no likelihood” of coming up with a mine, and this view is compatible with the results of IPM’s 450-ton bulk sample, taken last summer. It was a total bust, as the company was not able to recover a precious metals concentrate from the sample.

Prior to this technical mishap, the company (then known as International Platinum) was suspended from the TSE after an independent firm found nil or trace gold values on the property, as well as no platinum group elements. IPM now trades over the counter, and on NASDAQ.

Copper saw a slight decrease in its value, falling US2 cents to $1.09 per lb.

Nickel and lead also declined in value, losing US5 cents and US1 cents, respectively, to wrap up the week at $3.59 per lb. and 31 cents per lb.

Unlike its relatives, zinc was a penny higher at US57 cents per lb.

The TSE metals and minerals sub-group went for a positive ride, climbing 244.02 points or 4.1%, finishing at 5,891.4. Cameco was the big winner, picking up $4.55 to finish at $56.45. Inco added $2.65 to close at $51.15, while Rio Algom climbed $1.45 to $36.95. Falconbridge rose $1.35 to $33 and Noranda climbed a modest 15 cents to end the week at $32.95.

Among Toronto juniors, United Keno Hill Mines saw a dollar shaved from its share price, closing at 60 cents. The company recently announced it is suffering an acute cash flow shortage as a result of its major shareholder having withdrawn financial support.