Toronto Stock Exchange Summer rally pushes index near record high

Ground continues to be gained by the stock market which closed just shy of the 3,400-pt mark today. The market rally, which began several weeks ago, has added more than 200 pts to the composite index, which in late May was actually testing post-Oct. 19 lows. Observers are still debating if this is the beginning of the much-touted summer rally. We note that it’s hot outside, this is the month of June and the market is up 200 pts in three weeks — that sounds like a rally to us.

A dull performance was put in by the TSE today which made a small 3.75-pt gain to 3,399.9 pts. The gold and silver index was stronger at 6,924.06 pts for a gain of 24.92 pts. Gold bullion was steady at $452(US) per oz on the second London fix.

Base metal producers continue to generate hefty volumes. Inco Ltd. hit a new high of $40.25 and closed today at $40. Second-quarter earnings are expected to exceed $200 million on a nickel price realization of more than $5(US) per lb. Performance like this will enable the company to substantially reduce its long-term debt load this year.

Falconbridge Ltd., which has lost ground to Inco in terms of share price, was also better at $25.63.

Hemlo Gold Mines, which owns the lucrative Golden Giant mine at Hemlo, was firm despite rumors in Toronto that a junior mining company has restaked the Golden Giant and plans to dispute ownership. Hemlo was steady at $16.

Most senior golds were stronger today. Lac Minerals added a dime to $15.75. American Barrick Resources was easier 25} to $26.75 today. Franco Nevada added a quarter to $10.50 on news that the company had sold its Hasbrouck gold property in Nevada to another company.

Word that Neptune Resources has arranged a conditional $90-million debt financing package with a bank, helped that issue move to $4.20. The deal is conditional on Neptune arranging an additional $30 million equity financing. The $120- million is needed to finance the company’s ambitious gold mining project in the N.W.T. Little Hydra Explorations which holds a 20% stake in the Neptune project, was also stronger, moving to $1.05. Neptune management has control of the Hydra board.

Big things are expected for Mineral Resources International, the Conwest-controlled zinc-lead producer. MRI operates the Nanisivik mine in the Arctic and is looking to record earnings this year due to racing zinc prices. The supply- demand fundamentals for the metal keep getting better each month. The issue was weaker at $4.05; off 10} for the day.

A possible takeover against New Golden Sceptre Mines, a Hughes- Lang company, is being mounted by J. Patrick Sheridan who disclosed a 10% holding in the company. This issue was stronger today trading over 30}. The company has a healthy cash reserve of more than $4.5 million.

T & H Resources was easier on news that the company plans to amalgamate with affiliate Coastoro Resources. The issue gave up a nickel to $2.50. T & H holds several important claims in the Harker- Holloway camp, east of Matheson, Ont., on which gold reserves are being outlined.