The Toronto Stock Exchange moved higher over the report period April 10-16, on news of improving economic fundamentals. Even a quarter-point rate hike by the Bank of Canada on the final day didn’t stop the advance, as the TSE 300 composite index finished the period 119.46 points higher at 7,841.57, a gain of 1.5%.
The basic materials sectors were all higher, but none matched the advance by the base metal sub-group, which added 180.31 points, or 3.9% of value, to finish the period at 4,777.94. Metal prices on the London Metal Exchange were generally higher; nickel led the rest of the base metal complex with a gain of US16, closing at US$3.24 per lb., while copper and zinc each tacked on US1.
Inco, with 5.7 million shares traded, was the volume leader, and drew strength from nickel’s performance on the metal markets, adding $2.25 to finish the period at $33.20. At the annual meeting in Toronto, chief executive Scott Hand said Inco was close to a deal that would bring a new partner into the Goro nickel project in New Caledonia, and also that it was “close” to a reaching a deal with the government of Newfoundland that would permit development of the Voisey’s Bay nickel deposit in Labrador.
Crosstown rival Falconbridge was $1.45 higher at $19.85, and its parent, Noranda picked up $1.80 to close at $19.50. Grandparent Brascan has let it be known that it does not consider mining to be a “core” business, and the market may be responding to the possibility of a bid for the two companies.
The golds were also stronger, with the sub-group’s index up 100.51 points, or 1.7% of value, to 5,936.44. The most active in the sub-group, trading 20 million shares, was Kinross Gold, which closed 19 higher at $2.09. Kinross and Placer Dome, which was up 46 at $18.30, announced they had struck a deal to combine their Timmins-area operations. The new Porcupine area joint venture would be owned 51% by Placer and 49% by Kinross, and centre on Placer’s mill at Dome and Kinross’ at Bell Creek.
Kinross estimated the deal would have a significant economic impact on its Pamour 60 Pit, part of the package it bought out of receivership from the failed Royal Oak Mines. The Pamour open-pit operation had an indicated resource of 37.6 million tonnes grading 1.53 grams gold per tonne, or just over 1.8 million oz., at year-end. Kinross’ estimate was that 1.3 million oz. would be classified as proven and probable reserves as a result of the deal.
Barrick Gold was up 35 at $27.90 on a volume of nearly 11 million shares. President Randall Oliphant told a wire service reporter at the Melbourne Gold Conference that the company was “taking a fresh look” at developing the Pascua-Lama-Veladero land package on the Argentine-Chilean border.
Be the first to comment on "TSE up on recovery news"