STOCK MARKETS — Market indexes on rise while gold price

Investors continue to register confidence in the equity issues as witnessed by the high-level closings of the major market indexes in Toronto and New York.

The Toronto Stock Exchange 300 composite index, which broke through the 4,000 level earlier this month (the first time since early 1990), closed at 4,032.5 during the week ended Aug. 17, up slightly more than four points on the week. In New York, the Dow Jones industrial average of 30 stocks climbed to a new high at the close of our report period, to the 3,586.9 level. Today, Aug. 18, the TSE 300 index gained almost 37 points to 4,069 on a volume of 75.5 million shares.

The gold price was more or less static during the report period and shows little inclination to move. The afternoon fix in London today was US$373.70 per oz. A London newspaper reported that billionaire George Soros recently sold all his gold bullion (2-3 million oz.) on the international market, which, if true, may have contributed to the drop in the gold price. Interestingly, the TSE gold index was off by more than 213 points during the week, but senior gold producers experienced only modest price declines. For instance, Lac Minerals, one of the week’s more active issues, slipped 13 cents to $11.38. The High Court in Ireland ruled that Lac may continue its ownership pursuit of a majority interest in the Lisheen lead-zinc deposit in that country.

Gold producer Dickenson Mines, the subject of a takeover several years ago, may soon be amalgamated with its parent, Goldcorp. A proposal calls for a new company to be set up in a fashion similar to Dickenson, with multiple-voting and subordinate-voting shares. CSA Management, which controls Goldcorp, would see its ownership grip loosened considerably in the proposal. Dickenson’s A shares were off $1.13 to $6.50 while Goldcorp slipped 25 cents to $7.63. Metall Mining, up 13 cents to $11.13, says it is implementing a strategic plan designed to establish the company as a major integrated copper producer in the medium term. The strategy includes the acquisition of mining and smelting assets. Created in 1987, Metall produced 109,000 tonnes of copper in 1992.

The Ivan copper project in Chile will be brought on-stream by Minera Rayrock, with commercial-production status expected to be achieved by mid-1994. Annual output of 22 million lb. copper cathode is projected. Minera’s subordinate-voting shares were off 35 cents to $2.50.

The Sleeping Giant gold mine of Cambior and Aurizon Mines north of Amos, Que., is again in production. The companies expect annual output of 35,000 oz. Cambior slipped 63 cents to $16.63 while Aurizon closed unchanged at 80 cents.

Reporting an improved profit for the first half of the year, Agnico-Eagle Mines says development work is under way at the high-grade Zone 6 of the LaRonde gold mine west of Val d’Or, Que. Agnico, ahead 50 cents to $14.13, produced more than 76,000 oz. gold at LaRonde during the first six months of the year.

Fort Knox Gold Resources, formerly active in exploration in the Shining Tree area of northeastern Ontario, says more than 200 claims have been staked on its behalf in Clery Twp., north of Chibougamau, Que. The junior closed at 65 cents, off 12 cents.

Montreal Exchange-listed MSV Resources, a copper producer at Chibougamau, has acquired the mining concessions and surface equipment of Cedar Bay, Henderson I and Henderson II. The three properties are contiguous to MSV’s properties in the area. Off 7 cents, MSV closed at $2.58.

On the diamond scene, Texas Star Resources, down 30 cents to $4.70, says its partner Lytton Minerals has started drilling the first of eight targets on claims in the Humpy Lake area of the Northwest Territories. Lytton closed unchanged at $4.50. And in the Central African Republic, United Reef Petroleums says a pair of gravel samples yielded 32 diamonds weighing a combined 13.4 carats. Reef slipped 12 cents to 85 cents.