TSE composite ends flat as gold rallies

The Toronto Stock Exchange moved sideways over the holiday-shortened report period, gaining a piddly 35.21 points. The composite index ended the Dec. 23-27 period at 6,595.83.

Gold maintained its momemtum of late, marching ahead US$4.60 to a London morning fix of US$348.50 on Dec. 30. That, in turn, bouyed the TSE’s gold index by 5.13 points to a period close of 203.83.

Kinross Gold was the most active resource stock on the bourse, climbing 56 to $4 on a volume of 14.5 million shares. Then came a slew of juniors, led by McWatters Mining, which ran up 6 to a quarter as 9.4 million shares changed hands.

As for the majors, Barrick Gold jumped $1.01 to $24.61 while Placer Dome climbed $1.10 to $18.20. Also ahead was Meridian Gold, up $2.05 at $27.97, Agnico-Eagle Mines, up $1.78 at $23.88, and Goldcorp, up $1.30 at $20.45.

The Ontario Superior Court of Justice wrapped Iamgold on the knuckles, ordering it to pay Vancouver-listed Kinbauri Gold $1.7 million in damages, plus prejudgment interest and costs, in relation to a failed 1990 merger. Still, Kinbauri came up short in its expectations, having claimed just shy of $8.2 million in damages, plus $416,000 for costs and expenses. A further claim of $2 million worth of punitive damages was dismissed completely by the court. Iamgold rose 21 to $4.90, reflecting the rise in the gold price.

Golden Star Resources, up 27 to $2.80, filed a shelf offering to sell up to US$75 million worth of common and preferred shares, warrants and convertible debt securities. Proceeds are earmarked for new acquisitions and development of existing properties, particularly its Bogoso-Prestea project, where proven and probable reserves were recently boosted to 20.6 million tonnes averaging 3.15 grams gold per tonne.

The base metals sector echoed the broader market, remaining virtually unchanged at 130.48 points. Inco was the most active of the bunch, rising 80 to $33 on a volume of 1.5 million shares, followed by Noranda, which slipped 13 to $13.94 as 1.2 million shares changed hands.

Except for Aur Resources, which fell 4 to $3.66, the remaining producers finished the period ahead. Cameco showed the biggest gains, rising $1.20 to $38.60, no doubt reflecting its recent ownership increase in Ontario’s Bruce Nuclear Power Plant.

Junior TVI Pacific once again became the target of violence in the Philippines. On Dec. 26, two employees, three contract guards and eight others were murdered in an ambush near its Canatuan project, while 12 others escaped with injuries. The recent flare-up follows a similar killing of two security guards last March, though TVI reconfirmed its commitment to advance the project. TVI edged ahead a penny on heavy volumes to 8.

Also up were Wheaton River Minerals, ahead 8 at $1.40, and Geomaque Explorations, 4 higher at 11. The surges are inexplicable, given that both companies made the most active issues list and neither released any news.