Trading Summary (May 28, 2001)

The Toronto Stock Exchange slipped 1.74 points on Monday to end a very quiet trading day at 8,291.1. Investors remained on the sidelines during the U.S. Memorial Day holiday, ahead of an expected announcement of a cut in the interest rate by the Bank of Canada on Tuesday. Analysts say the bank may go easy on its rate-trimming, citing recent data that suggests a rise in inflation.

Northern Financial grabbed the number two spot on the TSE’s most active issue list with more than 2.6 million shares changing hands. The issue gained 0.5 to 11. The company, which holds a class A share of the Canadian Ventures Exchange (CDNX), voiced its opposition to the Toronto Stock Exchange’s proposed acquisition of Canada’s junior bourse.

SouthernEra Resources clung to the last spot on the most active list with just under 1 million shares on the go. The company announced that RMB International (Dublin) is converting US$2 million in exchangeable capital units, issued by SouthernEra (SUF-T) on March 1, 2000, into 1.5 million shares at a strike price of $2.07 per share. Originally, US$5 million in units were used to acquire a portion of SouthernEra’s 70.4% interest in Messina Ltd. The stock fell 21 to $3.50.

The gold & preious minerals subgroup was one one of eight of subindexes to finish in the black, but just barely, rising 8.98 points to 5,141.14. Placer Dome led the country’s gold miners with just less than 272,000 shares on the move. The issue gained 38 to $18.35. Kinross Gold was close behind as it fell 4 to $1.40 on about 270,000 shares. Among the gainers were TVX Gold, up 4 to $1.15, Normandy Mining, up 50 to $9.50, and Meridian Gold, 5 higher at $12.50.

The base metal issues dropped 18.41 points to 4,878.45. The subgroup was about as active as the golds. Sherritt International led the way with 432,255 shares crossing the floor to gain 4 to $5.35. The company says it has paid for all of the units and debentures of the Luscar Coal Income Fund that were tendered to its amended offer. Sherritt Coal has acquired about 80.8 million units of Luscar, giving the partnership more than 95% of the fund’s outstanding units. The offer also netted a $96-million principal amount of debentures, representing 96% of the total outstanding.

Other base metal issues on the rise included Noranda, up 3 to $17.50, Teck’s B series, up 16 to $16.35, and Cominco, a nickel higher at $34.85.

Canada’s junior exchange drifted higher on low volume. The Canadian Ventures Exchange gained 24.41 points, or 0.7%, to finish the day at 3,346.78. The Mining Index tacked on 87.33 points, or 1.2%, to close at 7,191.75.

Shares in Donner Minerals continued to rise following the creation of the SVB Nickel Company. To form the new entity, the junior pooled some of its interests in the Voisey’s Bay area of Labrador with ground held by Cypress Development NDT Ventures, Rcom Venture and Curion Ventures. Stock in Donner climbed 4 to 18 with 474,000 shares changing hands.

Grayd Resource ended the day at 18, up 2 on 520,000 shares. Placer Dome is earning a 51% stake in Grayd’s wholly owned White Gold project near Tok, Alaska.

Leader Mining International bounced off recent lows, climbing 5 to 35 on 247,000 shares. The company has launched a field sampling program over the reported nickel resource at the Cogburn claims in southwest British Columbia.

Champion Resources lost 3 to end the day at 15 on a modest 65,000 shares. A heavy mineral concentrate sampling program is near completion on the company’s diamond project in eastern Guinea-Bissau.