A pullback in all the resource sectors hit the Toronto Stock Exchange during the reporting period Sept. 19-25, so that even with financials and real estate stocks on the upswing the TSX Composite Index fell 180.83 points, or 1.5%, to 11,582.72 points. The energy, gold and mining groups all declined more than 5% in the same period.
The base metals sub-index fell 26.80 points to 502.78, partly in response to a dip in metal prices early in the trading period, but more as a result of profit-taking. The big news was that Inco’s board, having exhausted its options in the takeover market, had acquiesced to the bid from Companhia Vale do Rio Doce. Though nobody was particularly surprised at the scarcity of white knights, Inco’s share price still eased down 35 to $85.10. Inco was also the volume leader among the base metal stocks, with 22 million shares moving.
All the other stocks on the index took hits, some heavy. The biggest decline was in shares of First Quantum Minerals, which were off $8.79 to $48.00, a loss of over 18%. EuroZinc Mining fell 42 to $2.48, or 17%, and HudBay Minerals slid $1.35, a decline of 10%.
The nickel producers fared best, though not particularly well. FNX Mining shed $1.07, settling at $12.18, LionOre Mining International slipped 32 to $6.43, and Sherritt International backed up 53 to $9.60.
Off the base metal index, the big winner was Novicourt, which surged 12% — translating into a 27 gain to $2.27. Xstrata announced it would complete Falconbridge’s plan to take Novicourt private at $2.30 per share via a subsequent-acquisition bid.
Over in the golds, the proposed merger of Goldcorp and Glamis Gold is headed for some shareholder resistance, in the person of former Goldcorp chairman Robert McEwen. McEwen, who owns a 1.5% shareholding in Goldcorp, used a luncheon address at the Denver Gold Show to fire a shot across the Goldcorp bow, suggesting that he would seek proxies to force a shareholders’ meeting that would consider the merger plan. Goldcorp, whose share price has dropped about 27% since the deal was announced, closed at $24.61, down $1.80, on volume of 19.3 million shares (about three McEwens, if you’re counting). Glamis, whose price jump since the announcement of the merger has been wiped out, was off $3.12 at $41.19. The notional value of the Goldcorp bid, $51.63 on its unveiling, is now $41.59.
One gainer among the gold developers was Gammon Lake Resources, which rose 42 to $12.92, but other than that most of the golds fell. Biggest loser in proportion to price was Crystallex International, which was off 51 at $3.10, a decline of over 16%. Golden Star Resources was off 34 at $2.98 and Yamana Gold fell 98 to $10.00.
With Iamgold off 86 at $9.32, the company’s bid for Cambior valued its target at $3.91. Cambior shares were down 36 to $3.84. Kinross Gold was off a buck at $12.90 and Meridian Gold fell $2.45 to $26.69.
TSX greatest percentage change
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Novicourt | NOV | 36 | 2.27 | 2.20 | 2.27 | +13.5 |
| First Nickel | FNI | 8652 | 0.415 | 0.365 | 0.405 | +12.5 |
| GBS Gold Intl | GBS | 3134 | 2.71 | 2.30 | 2.60 | +10.6 |
| Ivernia | IVW | 1452 | 1.15 | 0.96 | 1.06 | +10.4 |
| Platinum Gp Mt | PTM | 231 | 1.90 | 1.65 | 1.85 | +8.8 |
| Wallbridge Mng | WM | 281 | 0.255 | 0.20 | 0.25 | +8.7 |
| Timminco | TIM | 10 | 0.355 | 0.33 | 0.355 | +7.5 |
| Vaaldiam Res | VAA | 526 | 0.96 | 0.80 | 0.90 | +7.1 |
| StrataGold | SGV | 1627 | 1.28 | 1.15 | 1.22 | +6.0 |
| Franc-Or Res | FOR | 59 | 0.18 | 0.165 | 0.18 | +5.8 |
| HMZ Metals wt | HMZ.WT | 111 | 0.015 | 0.005 | 0.005 | -66.6 |
| Northgate wtA | NGX.WT.A | 4643 | 0.77 | 0.45 | 0.47 | -35.6 |
| SouthernEra wt | SDM.WT | 15 | 0.06 | 0.04 | 0.04 | -33.3 |
| Northgate M wt | NGX.WT | 1495 | 0.78 | 0.455 | 0.53 | -29.3 |
| Chariot Res wt | CHD.WT | 1865 | 0.245 | 0.16 | 0.18 | -28.0 |
| Hillsborough | HLB | 1520 | 0.73 | 0.50 | 0.52 | -27.7 |
| Niocan Inc | NIO | 77 | 0.35 | 0.30 | 0.33 | -25.0 |
| Khan Res | KRI | 1319 | 1.69 | 1.25 | 1.28 | -21.4 |
| Rio Narcea wt | RNG.WT | 144 | 0.325 | 0.255 | 0.255 | -20.3 |
| Equinox Minls | EQN | 25953 | 1.59 | 1.17 | 1.27 | -20.1 |
TSX greatest value change
| VOLUME | CLOSE | CHANGE | ||
| Potash Cp Sask | POT | 1515848 | 114.00 | +5.82 |
| Central Gold-T | GTU.UN | 47499 | 24.30 | +0.87 |
| Dundee Bancrp | DBC.A | 281065 | 46.45 | +0.53 |
| Gammon Lk Res | GAM | 3242773 | 12.92 | +0.42 |
| NovaGold Rs wt | NG.WT | 10400 | 11.13 | +0.38 |
| Imperial Metal | III | 49767 | 10.02 | +0.32 |
| Novicourt | NOV | 36053 | 2.27 | +0.27 |
| Scandinav Mnl | SGL | 191800 | 4.75 | +0.25 |
| GBS Gold Intl | GBS | 3133882 | 2.60 | +0.25 |
| Platinum Gp Mt | PTM | 230670 | 1.85 | +0.15 |
| First Quantum | FM | 3111797 | 48.00 | -8.79 |
| Teck Comin B | TCK.B | 6927978 | 64.86 | -3.32 |
| Cameco Corp | CCO | 9710125 | 40.80 | -3.19 |
| Teck Comin A | TCK.A | 10669 | 68.82 | -3.18 |
| Inmet Mining | IMN | 836626 | 41.25 | -3.13 |
| Glamis Gold | GLG | 5691205 | 41.19 | -3.12 |
| Alcan | AL | 8681867 | 43.40 | -3.03 |
| Lundin Mng | LUN | 448574 | 27.96 | -2.95 |
| Meridian Gold | MNG | 1858195 | 26.69 | -2.45 |
| Newmont Mng | NMC | 375883 | 48.18 | -2.02 |
TSX most active issues
| VOLUME(000s) | HIGH | LOW | CLOSE | CHANGE | ||
| Bema Gold | BGO | 45728 | 5.40 | 4.62 | 4.85 | -0.41 |
| Equinox Minls | EQN | 25953 | 1.59 | 1.17 | 1.27 | -0.32 |
| Inco Ltd | N | 22435 | 85.60 | 84.85 | 85.10 | -0.35 |
| Cambior Inc | CBJ | 20514 | 4.20 | 3.79 | 3.84 | -0.36 |
| EuroZinc Mng | EZM | 20473 | 2.90 | 2.45 | 2.48 | -0.42 |
| Goldcorp | G | 19302 | 26.74 | 24.17 | 24.61 | -1.795 |
| Golden Star | GSC | 17396 | 3.33 | 2.81 | 2.98 | -0.34 |
| Kinross Gold | K | 16585 | 13.90 | 12.61 | 12.90 | -1. 00 |
| Yamana Gold | YRI | 15162 | 10.98 | 9.86 | 10.00 | -0.98 |
| Barrick Gold | ABX | 12526 | 33.61 | 31.75 | 32.49 | -1.01 |
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