Toronto Stock Exchange Major indices advance on stable commodity

Although the prospects for a recession are growing, creeping inflation remains a concern of most central banks. Combined with increasing demand for bullion in Asian countries, most analysts forecast strengthening prices in 1990.

American Barrick Resources advanced to $19.25 from $19.13. LAC Minerals slipped a quarter to $14. Both companies are major gold producers, the latter increasing its output via the acquisition of Bond Gold recently.

Aur Resources made it back to $13.38 after slipping to around $12.50 on growing concerns about its lawsuit with Louvem over the Louvicourt base metals discovery in Quebec. Louvem was easier at $8.88.

Despite the courtroom problems, Aur’s Jim Gill has come up with a company building find, one which is sure to provide the basis for a long-life mining operation. As a result, there was little debate when he was chosen The Northern Miner’s Man of The Year (see front page story).

Agnico-Eagle Mines plans to merge with Dumagami Mines despite the objections of several minority shareholders. Agnico was easier at $10.38 whereas Dumagami, which has a new mine in Quebec, slipped to $17.38. One comment heard recently is that the combined companies make an interesting takeover acquisition for LAC, which is building a new mine on the same deposit that extends from the Dumagami claims. Pamour opened up for trading today after a long halt. Affiliate company ERG Resources owes more than $100 million to Pamour, Giant Resources and an Australian bank. The financial problems in the group pushed the share price to $5.

Denison Mines’ A shares were unchanged at $3.90. The company says a deal to sell its Spanish oil assets has fallen through. The company plans to focus on mining in the future.

Gibraltar Mines also gave up some ground to $9.38. The issue, as most copper plays, is being hurt by investor concerns about a recession in 1990 which could impact on copper demand and prices.

Bethlehem Resources, which wants to reopen the Goldstream copper mine in B.C, was also weak, trading at a new low of 49 cents before closing at 50 cents . Goldstream was a former Noranda mine which was shut down due to low prices.

Cominco Ltd. managed to advance to $26.63. A major zinc producer, the company’s Red Dog mine in Alaska has started to produce concentrates for shipment next year. Inco Ltd. was unchanged at $31.88. The big nickel miner is probably quite pleased with nickel prices around $4 per lb. At this level, Inco continues to make excellent profits and undeveloped deposits not controlled by the company remain just that — undeveloped.

RFC Resource Finance slipped a dime to $1.80. The company is getting excellent results from a drill program on the Pende Oreille zinc project in Washington. The company plans to complete a feasibility study shortly.

Hemlo Gold Mines slipped to $18.25 as did Franco-Nevada Mining, which closed at $18.50 after making a strong run to a new high of $19 earlier in the week. Franco controls lucrative royalties on American Barrick’s rich Goldstrike deposit in Nevada.

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