STOCK MARKETS — Mining stocks dip in sluggish market

The Toronto Stock Exchange lost some ground over the trading period ended Sept. 3, with the TSE 300 composite index off 21.99 points to close at 5,151.89. Trading was active in the earlier part of the week, averaging roughly 85 million shares per day, but tailed off to the 55-million-share level during the final two days of the period under review.

Base metal stocks underperformed the market, while the golds were close to the market average.

The Canadian dollar enjoyed another strong week, slipping slightly against the U.S. dollar and the pound, but gaining against the other major currencies. The Loony was at US73 cents at noon on Sept. 3, down 13 basis points from the previous week.

Gold prices on the London bullion market fell $2.70 per oz. over the period Aug. 29-Sept. 4, settling at US$385.95 per oz. at the London morning fix.

Silver gave up 6 cents to end the period at US$5.15 per oz., while platinum fell $5 to finish at US$395 per oz. Palladium’s woes improved only slightly, adding 25 cents on the interbank market for a Sept. 3 price of $127 per oz.

The golds were off fractionally, losing 62.40 points to close at 11,817.40 on Sept. 3. Bema Gold was the most actively traded issue on the sub-index, losing 75 cents to close at $10.45. Barrick Gold was unchanged at $37.55, Placer Dome lost 35 cents to finish at $33.30, and Kinross Gold fell 45 cents to $10.75.

Upstream swimmers included Agnico-Eagle Mines, which rose $1.45 on takeover speculation to close at $23.50, Goldcorp, up 55 cents to $13.30, and Euro-Nevada Mining, which added $1.25 to finish at $34.50.

London Metal Exchange prices for base metals were higher, due in part to the troubles in the Middle East. Nickel was the big winner, climbing 10 cents to $3.37 per lb. Copper added 2 cents to 91 cents per lb., and zinc and lead were each 1 cents higher.

Base metal issues were generally weaker as well, with the TSE metals and minerals index closing 65.87 points lower at 5,251.53, a loss of 1.2% from the week before. Inco fell 75 cents, closing at $44.10, Falconbridge lost 5 cents for a close of $29.95, and Cominco was 5 cents lower at $30.70.

The market decided Gibraltar Mining had suffered enough and the stock rebounded to $6.05, a gain of $1.05 on the week. The company secured financing for the development of its Lomas Bayas copper deposit in Chile, and Placer Dome is looking for a buyer for its 30.8% stake in the company.

Noranda added 15 cents for a close of $29 and Rio Algom posted a 10 cents gain for a closing price of $27.25.

Toronto juniors made for a livelier market last week. NovaGold Resources, down 2 cents to 35 cents, was the most active of the TSE juniors with 4.6 million shares traded. Vancouver-listed Chapleau Resources, NovaGold’s JV partner at the Sewell Brook copper project in New Brunswick, was on the VSE’s most-active list, and was 37 cents higher at $2.23.

AMT International Mining, which announced it would be contracting for a feasibility study at its Copper Creek copper-molybdenum project in Arizona, was up 50 cents to $1.10. Mirage Resources was 42 cents higher at $1.30; the company, with affiliate Kinross Gold, arranged additional financing for additional work on its projects in El Salvador.

Vior Mining and Aurizon Mining announced that they would conduct development work on the Douay West gold deposit near Joutel, Que., with Aurizon earning a 50% interest by bringing the deposit to production. Vior, at $1.13, was 6 cents higher on a volume of 2.6 million shares. Aurizon added 5 cents to close at $1.20.

Raudin Explorations succeeded Vior as the Montreal Exchange’s mystery stock, adding 14 cents to close at 40 cents on 686,000 shares. The company has stated that there has been no material change in its affairs. Another Montreal listing, Azimut Exploration, was 40 cents higher at 95 cents.