STOCK MARKETS — TSE sets another trading record as golds

April turned out to be another extraordinary month for market players as the Toronto Stock Exchange’s composite 300 index shot up by more than 5% on record volume.

According to TSE statistics, more than 1.4 billion shares valued at $12.1 billion changed hands last month, up 6.2% from a previous record in March. Those who had the patience to hang on to their gold stocks through bullion’s seemingly endless bear market were particularly fortunate. As gold tacked on almost US$20 per oz. to US$350 over the month, the gold and silver group jumped 17.7%.

Among the three most actively traded, $1-plus stocks on the exchange were three mining issues: Lac Minerals, up 88 cents to $10.38; Placer Dome, up $2.88 to $21.75; and Lytton Minerals, up $1.90 to $5.75.

But Lytton, whose advance was based on pure speculation, took a dive during the week ended May 4 after announcing sample results from its diamond property in the Northwest Territories. Although Lyttons’ Ranch Lake kimberlite contains a significant quantity of macrodiamonds, a Pacific International report that compared the Lytton find to other discoveries in the Lac de Gras area issued a sell recommendation on the stock. Investors took heed, lopping $1.75 off the share price. Lytton closed at $4.40 today (May 5).

Word from the Territories is that SouthernEra Resources, up $1.13 to $7.58, has delayed its drilling program to fend off competitors trying to stake around its ground. Aber Resources, in its second month of drilling, is testing targets on both the Tenby and Commonwealth/Aber blocks. Aber added 35 cents to $4.40 but dropped back to $4.15 today.

On the broad market, most groups advanced, with the TSE 300 adding almost 100 points to 3779. The market was up again today on a strong volume of 58.7 million shares.

Despite another US$3 jump in the gold price to US$353.75 in New York, some of the golds ran out of steam during our report period, with Placer Dome leading the TSE gold and silver index down 60 points to 7345.

Placer fell 38 cents to $20.75 as the company announced a 14% decline in annual revenues for 1992. Profit was unchanged at $11 million. Moving in the opposite direction on heavy trading was Lac, up 25 cents to $10. The latest drilling at the Nevada project in Chile has extended the mineralized Esperanza gold zone 800 ft. to the south. Drilling will soon stop for the winter.

Although copper continues to look weak, dropping another 3 cents to 82 cents per lb. during our report period, two companies with copper projects in the pipeline performed well. Gearing

up for production at its deposit in Michigan, Great Lakes Minerals touched a new high of 85 cents before closing at 84 cents for a gain of 19 cents. Rio Algom, whose much-larger Cerro Colorado project in northern Chile is slated for production in early 1994, added $1.13 to $18.38.

Investors said goodbye to one of Canada’s exploration greats during the week as Minnova shareholders voted in favor of an amalgamation with copper producer Metall Mining. Minnova lost 13 cents to $15.63, while Metall, which reported strong first-quarter profits, closed unchanged at $11. With the announcement that it will scrap its $135-million QSL lead smelter at Trail, B.C., Cominco added 38 cents to $15.13. The company is seeking tax concessions from the B.C. government, but the province says cutting Cominco’s taxes would only entice the U.S. to slap duties on lead-zinc production. Negotiating with a group of Asian companies for a $50-million equity placement, Curragh added 12 cents to 40 cents. Cash-strapped Curragh has been given court protection from its creditors until the end of June. Hitting a new high of 90 cents was High River Gold Mines, which finished the week up 8 cents at 81 cents. High River has plans to resume drilling on its Snow Lake gold property in northern Manitoba, where reserves stand at 4.2 million tons grading 0.19 oz. per ton.