Merger and acquisition activity, along with buoyant resources, helped the Toronto Stock Exchange out of its recent slide during the June 20-26 report period. The benchmark index clawed back 364.62 points, or 3.3%, to reach 11,372.2. The gold index rocketed 9.4% higher to 284.44, while the diversified miners jumped 8.8% to 504.68. Aluminum and zinc prices were the lone metal losers.
Falconbridge and Inco stole the spotlight, with U.S.-based copper miner Phelps Dodge tabling a proposed three-way, US$40-billion merger deal. Falconbridge jumped $3.31 to $58.33, while Inco added $8.60 to make $72.28. The plan would beget the world’s largest nickel miner and second-largest copper producer.
Related shares ended higher: Teck Cominco, which has a competing bid for Inco, advanced $4.00 to $65.00 even, while LionOre Mining International soared $1.10 to $6.14. LionOre will buy Falconbridge’s Nikkelverk nickel refinery in Norway for US$650 million, provided Inco snaps up Falconbridge. The deal is designed to ease European regulatory approval of the long-delayed nuptials.
The country’s gold miners also enjoyed a boost from a rejuvenated yellow metal, which ended US$12.50-per-oz. better at US$583.50. Bema Gold trailed only Falconbridge in trading volume, with just shy of 17 million shares climbing 58 to $5.44. Goldcorp saw around 14 million shares add $3.01 to hit $31.70.
Kinross Gold shares floated 96 higher to $11.26 after the company unencumbered itself of the dormant Lupin gold mine in Nunavut and Blanket gold mine in politically unstable Zimbabwe. Barrick Gold rounded out the TSX’s 10 busiest miners’ list with a $1.28 gain to $31.78 on around 9.3 million shares.
Subsequent to the period’s end, Bema and Venture Exchange-listed partner Arizona Star Resource inked a deal to acquire Barrick’s 51% stake in the large, low-grade Cerro Casale gold-copper project in Chile for US$10 million up front followed by at least US$70 million upon a construction decision. A previous feasibility study figures annual production at 975,000 oz. gold and 280 million lbs. copper over 18 years. The partners are updating operating and capital costs.
Quebec-based gold junior Franc-Or Resources jumped 42.5% to 28.5 to top the percentage gainers’ list. The Peruvian government recently granted a drilling permit for the Mario base metal property, where the company needs to sink 3,477 metres by the end of July as part of its option agreement with Teck.
Others on the rise were: Canadian Gold Hunter, plus 36.1% to $1.28; and Zaruma Resources, which advanced 25% to 15.
Gold Hunter recently launched a 40-hole, 15,000-metre drill program aimed at extending the Donnelly zone on the GJ property in British Columbia. Indicated resources there total 91.7 million tonnes of 0.37% copper and 0.38 gram gold. Zaruma has lined up construction financing for its Luz del Cobre copper project in Mexico.
TSX most active issues
| Volume(000s) | High | Low | Close | Change | ||
| Falconbridge | FAL | 23531 | 59.10 | 54.75 | 58.33 | +3.31 |
| Bema Gold | BGO | 16960 | 5.48 | 4.76 | 5.44 | +0.58 |
| Inco Ltd | N | 16568 | 74.48 | 63.85 | 72.28 | +8.60 |
| Teck Comin B | TEK.B | 14427 | 67.63 | 60.60 | 65.00 | +4.00 |
| Equinox Minls | EQN | 14193 | 1.33 | 1.25 | 1.30 | +0.03 |
| Goldcorp | G | 14015 | 31.99 | 28.55 | 31.70 | +3.005 |
| Breakwater Res | BWR | 12654 | 1.28 | 1.05 | 1.27 | +0.22 |
| LionOre Mng In | LIM | 12577 | 6.35 | 5.08 | 6.14 | +1.01 |
| Kinross Gold | K | 10589 | 11.50 | 10.22 | 11.26 | +0.96 |
| Barrick Gold | ABX | 9281 | 31.88 | 30.50 | 31.78 | +1.28 |
TSX greatest percentage change
| VOLUME(000S) | HIGH | LOW | CLOSE | CHANGE | ||
| Franc-Or Res | FOR | 365 | 0.285 | 0.20 | 0.285 | +42.5 |
| Northgate wtA | NGX.WT.A | 752 | 1.25 | 0.90 | 1.25 | +42.0 |
| Canadn Gld Hun | CGH | 298 | 1.30 | 0.96 | 1.28 | +36.1 |
| Northgate M wt | NGX.WT | 359 | 1.29 | 0.92 | 1.29 | +34.3 |
| Frontera Cp wt | FCC.WT | 245 | 1.68 | 1.30 | 1.62 | +31.7 |
| Skye Res | SKR | 5451 | 9.49 | 6.45 | 8.75 | +29.6 |
| Pioneer Metals | PSM | 2795 | 0.76 | 0.58 | 0.75 | +27.1 |
| Nevsun Res Wt | NSU.WT | 223 | 1.28 | 1.00 | 1.26 | +26.0 |
| Agnico-Eag wt* | AEM.WT.U | 22 | 15.00 | 12.25 | 15.00 | +25.0 |
| Zaruma Res | ZMR | 1088 | 0.17 | 0.11 | 0.15 | +25.0 |
| HMZ Metals wt | HMZ.WT | 20 | 0.015 | 0.015 | 0.015 | -25.0 |
| Pine Valley Mg | PVM | 241 | 1.05 | 0.75 | 0.81 | -22.8 |
| European Ml wt | EPM.WT | 126 | 0.50 | 0.39 | 0.39 | -22.0 |
| Western Copper | WRN | 2148 | 1.28 | 1.05 | 1.05 | -17.9 |
| Ascendant Copp | ACX | 266 | 0.51 | 0.49 | 0.49 | -16.9 |
| Cancor Mines | KCR | 65 | 0.27 | 0.27 | 0.27 | -15.6 |
| Moydow Mns Int | MOY | 183 | 0.27 | 0.23 | 0.23 | -14.8 |
| NEMI Nor En&Mg | NNE.A | 262 | 1.13 | 0.77 | 0.97 | -14.1 |
| New Gold wt | NGD.WT | 23 | 2.33 | 1.90 | 1.90 | -13.6 |
| QGX | QGX | 205 | 2.11 | 1.70 | 1.74 | -13.0 |
TSX greatest value change
| VOLUME | CLOSE | CHANGE | ||
| Inco Ltd | N | 16567787 | 72.28 | +8.60 |
| Inco wt | N.WT | 70912 | 42.10 | +7.63 |
| First Quantum | FM | 1634970 | 49.21 | +5.98 |
| Glamis Gold | GLG | 5232335 | 40.15 | +5.61 |
| Agnico-Eagle | AEM | 3374084 | 34.79 | +4.41 |
| Teck Comin A | TEK.A | 15157 | 73.13 | +4.12 |
| Teck Comin B | TEK.B | 14426686 | 65.00 | +4.00 |
| Inmet Mining | IMN | 1014930 | 38.41 | +3.76 |
| Cameco Corp | CCO | 5060876 | 43.72 | +3.42 |
| Alcan | AL | 5684300 | 50.60 | +3.36 |
| Dundee Bancrp | DBC.A | 92297 | 33.27 | -1.72 |
| Major Drilling | MDI | 511414 | 21.40 | -0.77 |
| Dundee Prec Mt | DPM | 344469 | 10.75 | -0.65 |
| Globex Mng | GMX | 29150 | 3.17 | -0.30 |
| New Gold wt | NGD.WT | 22650 | 1.90 | -0.30 |
| QGX | QGX | 204501 | 1.74 | -0.26 |
| Teal Expl & Mg | TL | 12400 | 4.75 | -0.25 |
| Pine Val ley Mg |
PVM | 240901 | 0.81 | -0.24 |
| Noranda Inc Fd | NIF.UN | 100331 | 11.60 | -0.24 |
| Anatolia Minls | ANO | 119739 | 3.27 | -0.23 |
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