Nickel, gold weigh on market

The Toronto Stock Exchange’s S&P-TSX composite index dropped 112.81 points, or 1.3%, to end the Feb. 18-24 report period at 8,604.99. Much of the drop can be attributed to the fall of recent stars nickel and gold. Nickel did its best lead impersonation, free-falling US$1,905, or 12%, to US$13,950 per tonne. Gold must’ve been next in line at the alchemist’s; it plunged US$12.25 to close at US$402.25 per oz. in the afternoon in London on Feb. 24. It was off as much as US$15 earlier in the period. No surprise the Diversified Metals & Mining index finished 3.8% lower at 222.11 points, as the Gold index shed 1.6% to 212.39.

Cambior was busy during the report period, first nearly tripling its fourth-quarter earnings to US$4.4 million (or 2 a share) on improved gold sales and lower operating costs. The company then announced a 1-month odd-lot selling program that allows investors holding 99 or fewer of its shares to sell without incurring any brokerage commissions. But, the big news at period’s end was that Jipangu, the company’s largest shareholder, had sold its remaining 14% stake in the miner. The shares yo-yoed themselves 15 lower to $3.74.

Also at period’s end, Barrick Gold said it expects gold production to rise by 40% to around 7 million oz. by 2007, as new mines in Argentina, Peru, Australia, and Tanzania come online in 2005 and 2006. Production for 2004 is pegged at about 5 million oz. Total cash costs for 2004-2007 are expected to come in under US$200 per oz. Looking ahead, the company says it will explore 95 projects in nine countries during 2004 to keep its project pipeline primed. Barrick’ shares ended 19 to the good at $27.39.

Shares in Goldcorp dropped 70 to $17.70, even as the company posted record earnings of US$98.8 million on revenue of US$263 million for all of 2003. Off index, High River Gold Mines fell 19, or nearly 9%, to $2 after reporting that its gold production slipped by 15% to 118,182 oz. in 2003, as operations at the 50%-owned New Britannia mine in Snow Lake, Man., wind down.

Looking to join the gold-producing fray, investment company Dundee Precious Metals has tabled plans to operate two recently acquired Bulgarian gold projects. The company’s shares soared $5.40, or about 18%, to a new 52-week high of $36.

Maintenance and production workers at Falconbridge‘s Sudbury operations ratified a new 3-year deal to end a 3-week strike. The celebration was short-lived however with Reuters reporting on Feb. 24 that the operation’s 218 non-production staff have threatened to strike unless they get a new contract that reflects today’s high nickel prices. The group’s current contract expires on Feb. 28. Falco surrendered mid-period gains to end 37 poorer at $33.65.

There was better news for Diamond Fields International, which will resume diamond mining off the coast of Namibia by May. The news briefly buoyed shares, but the gains slipped away and the issue ended 1 lower at 67.