Trading Summary (November 14, 2001)

Profit taking doused early gains on the Toronto Stock Exchange on Wednesday. The TSE 300 composite index hit pre-Sept. 11 levels on the back of mining and technology stocks, but dipped into the red until a late rally lifted the index to a 7,349.5-point close, up 25.06 points from Tuesday’s close. Leading the advancers was the base metal sector, which gained 95.1 points or 2.4%. In the end, just four of the TSE’s fourteen subindices finished in the red.

Gold royalty company Franco-Nevada Mining shot to the top of the TSE’s activity list gaining $1.47 or 6.3% to $24.67 on nearly 23.1 million shares. On Wednesday, Newmont Mining, North America’s biggest gold producer, announced plans to buy Toronto-based Franco-Nevada and make an offer for Australia’s Normandy Mining. The deals worth $4.42 billion would create the world’s largest gold miner. Franco holds a 19.9% stake in Normandy, and has committed the position to Newmont’s offer. For its part, Normandy finished up $1.05 or almost 9% higher at $12.80.

The nation’s remaining gold miners were left in the dust. Placer Dome gained 13 to $17.65 on just more than 1 million shares; TVX Gold rose 4 to 68; and Cambior added 4 to hit 75. Loser on the day included Barrick Gold, of 39 to $24.12 on just more than 1.7 million shares and Kinross Gold, which shed a nickel to $1.26. Overall the Gold & Precious Minerals subindex gained just 13.4 points to 4,975.23.

After climbing on the takeover news in New York in the morning, gold settled to US$277.20 per oz., US20 per oz. higher than Tuesday’s end. Silver was unchanged at US$4.14 per oz.; platinum gained US$6 to US$426 per oz.; and palladium rose US$4 to US$316 per oz. The base metals performed similarly. Nickel continued higher adding US$230 to hit US$5,770 per tonne and tin gained US$245 to reach US$4,180 per tonne.

Teck Cominco was the busiest base metal stock with more than 3.2 million shares on the go. The issue climbed 18 to $11.73; Noranda rose 30 to $15 with about 2.2 million shares traded. On Wednesday, Peru’s president Alejandro Toledo officially inaugurated the Antamina copper and zinc mine. At a daily design capacity of 70,000 tonnes of ore, Antamina is scheduled to average, on an annual basis, 306,000 tonnes copper (contained in 1 million tonnes of copper concentrate) and 283,000 tonnes zinc (contained in 490,000 tonnes of zinc concentrate). Teck Cominco has a 22.5% stake in the project, Noranda holds a 33.75% interest.

A nice percentage gainer was financially troubled Breakwater Resources, which shot up another 7.5 or 28% to 34.5, its second straight day of such performance. The zinc miner recently decided to shut down its Nanisivik zinc mine in Nunavut. The closure is scheduled for September 2002.

Canada’s junior exchange continued to lack direction, as yesterday’s winners became today’s losers. The Canadian Venture Exchange ended the day virtually unchanged gaining 0.12 of a point to finish the day at 3,023.13. The Mining Index lost 49.63 points, or 0.6% to close at 7,659.74.

Quaterra Resource got a boost on news of a planned $2-million financing. Stock in the Thomas Patton-led junior climbed 4 to end the day at 26 on a heavy 723,500 shares. The company is currently drilling its Duke Island nickel-copper-platinum-palladium property in Alaska.

Stock in Rubicon Minerals added 2 to yesterday’s 11 surge ending the day at 49 on 257,400 shares. Five of six drill holes completed on the Slate Bay prospect in the prolific Red Lake mining district of Ontario cut mineralization with hole 1 hitting 2.56 grams gold over 2.3 metres.

Kensington Resources gained 4 to close at 61 on 151,200 shares. The junior recently completed 10 large diameter drill holes on the 141 and 150 kimberlite pipes on the Fort a la Corne diamond project in Saskatchewan. The holes are provided bulk sample material from the pipes.

Champion Resources tacked on 1 to close at 7 on a modest 30,000 shares. The company recently announced a plan to consolidate its shares based on a 12-to-1 ratio. This would leave the company with about 3.1 million shares outstanding. A rights offering will be made to shareholders and funds raised from the offering will be used to advance the company’s Farim Phosphate project as well as its diamond exploration initiatives in Guinea-Bissau, West Africa