TSX basks in golden glow

After some earlier profit-taking, Toronto stocks resumed their ascent to end the Nov. 15-21 report period 132.62 points better at 10,817.34. The country’s gold miners enjoyed a boost as the yellow metal jumped US$21.45 per oz. to US$488.95; the rest of the precious metals tagged along. Likewise, the base metals, save for tin, all ended higher. Copper prices touched record highs on fears that China might not be able to cover a large short position in the red metal.

Canada’s gold producers were heavily traded during the period; the gold index advanced 15.5 points to 235.58. Bolivar Gold topped the volume list with 36.3 million shares trading their way 66, or 30%, higher to $2.86. Bolivar is the target of a $330-million friendly takeover bid from South African-based Gold Fields. The company’s warrants jumped 51% to $1.81.

Eldorado Gold ended 99 better at a 52-week high of $5.09 with about 10 million fewer shares traded; Bema Gold was close behind, gaining 46 to $3.56 on around 24.5 million shares. Both have been mentioned as possible takeover targets. Bema’s third-quarter loss widened to US$24.9 million from the year-ago US$21.6 million, partly owing to an unrealized derivative loss of US$10.9 million.

The period’s highest percentage gainer was the warrant of Gabriel Resources. The warrants jumped 57% to $1.10. Similarly, the company’s common shares advanced 60 to $2.95. The company says its embattled Rosia Montana gold project in Romania could begin producing in about three years with a new environmental impact assessment slated for submission early next year. The company also says environmental and archaeological issues could soon be settled, according to a recent Reuters report.

Shares in Miramar Mining soared 50% to $2.38 after gold giant Newmont Mining bought just shy of a 10% stake in the Nunavut gold explorer for $43.5 million. The major can boost its stake to around 18% by exercising the associated warrants. For its part, Newmont gained $3.61 to $55.81.

Another percentage performer was Globex Mining Enterprises, which shot up 53, or 49% to $1.61 on heavier-than-normal volume. The company began trading on the Frankfurt Stock Exchange in mid-October.

Only three base metal miners managed to crack the TSX’s top 10 traded miners list. Dynatec edged 4 pennies higher to $1.40 on 17.4 million shares. The company recently raised $118.8 million via the sale of 88 million shares. The underwriters can buy another 13.2 million shares at $1.35 apiece for one month. Dynatec will use the proceeds to fund its portion of the Ambatovy nickel-laterite project in Madagascar. Dynatec owns a 37.5% interest in Ambatovy.

The remaining two grabbed the final spots on the list, with Falconbridge gaining 13 to make $35.68 and LionOre Mining International falling 3 to $5.13. The U.S. Department of Justice recently made a second request for information regarding the pending merger of Falconbridge and Inco. Inco fell 86 to $53.04. LionOre earned US$11.3 million on revenue of US$88.9 million during the third quarter, down from net income of US$13.9 million on US$70.1 million a year earlier. The company is also investigating the recent death of a subcontractor at its Emily Ann nickel mine in Western Australia.