TSE wipes brow after recent debacle

Easing its downward spiral of late, the broad market fell less than a point over the March 21-27 report period, to finish the week at 7,751.33.

Even gold has regained its composure, trading unchanged at a London morning fix of US$261.20 per oz. on March 28. Canada’s major producers were not so lucky: Barrick Gold fell 74 to $22.59 on a volume of 5 million shares; Placer Dome dropped 47 to $13.72 on 3.8 million shares; and Kinross Gold slipped 3 to 80 on 1.7 million shares.

North American Palladium began on a down-swing, only to recover after the weekend and post a gain of 50. The palladium producer ended the period at $12.40 to recoup most of the losses taken in the previous one.

Montreal-based Cambior seems to have emerged from its extensive restructuring on a firmer financial footing. The company, which now has only four producing assets, slashed its debt by US$144 million over the last 15 months to US$68.2 million by selling off most of its base metal assets and handing over a 22% interest in the company to a Japanese firm. Cambior rose a penny over the week to 52.

Shaking off a dismal performance in the previous week, the base metals managed to keep to a relatively steady course. The TSE’s metals-and-minerals sub-group ended the period off by only 1.6%, owing, in part, to a 10-gain by Alcan Aluminium, which finished at $57.50.

Nickel was the only mover among the base metals, falling 7 to a London morning fix of US$2.72 per lb. Inco, which was named in an environmental class-action suit, tanked $2.50 to $24.40. Also down were Falconbridge, off $1.69 at $16.31, and Sherritt International, off 15 at $4.30.

Cominco jumped $2.94 to $15.74, only to slip 24 on March 28. On that date, the major announced it would reduce, by 25%, second-quarter zinc production at its Trail smelter in British Columbia in order to sell power. The decision is not expected to affect profits.

Among mid-tier producers: Boliden, which recently began development work at the Storliden zinc deposit in Sweden, remained unchanged at 65; First Quantum Minerals fell 15 to $3.15; Breakwater Resources climbed a penny to $1.23; and Aur Resources slipped 10 to $2.

Junior Semafo, which slipped a penny to 39, announced the start of construction at its Jean-Gobele gold project in Guinea. Managem, a Moroccan company that owns a 50.5% equity stake in Semafo, is securing the US$12 million needed to build the mine.

Namibian Minerals appears to have pulled itself from the financial mud after arranging two private placements worth US$25 million. The deals, one of which is subject to various approvals, are sufficient to retract the provisional liquidation agreements signed in late February. Namibian, which jumped 24 to 74, expects to resume marine diamond production shortly.