Trading Summary (November 06, 2002)

The TSE finally priced its long-awaited initial public offering at $18 a share — at the low end of an earlier revised range. The offer of nearly 18.9 million shares is expected to close on Nov. 12. Another 2.8 million shares are available to cover over-allotments. The shares will trade on the TSX, which is owned by about 90 brokerage houses.

On Nov. 6, shares of TSX, under the ticker symbol X, opened at $19.25 and reached as high as $20.50, before settling to a $20.35 close. More than 10 million shares traded on a “when issued” basis, enough to rank as the third most active issue of the day.

The golds put on a late-day surge to end 5.94 points or 3.35% higher at 183.04. The move was spurred on by gold, which ended US60 higher at US$317.80 per oz. in New York.

Placer Dome was the busiest gold major, adding 83 to make $16.33 with just short of 12 million shares changing hands. At last count, Placer had a 78% stake in takeover target AurionGold; it needs 90% to demand a trade-in.

Diamond miner Tahera grabbed another 3.5 to hit $17 with about 8 million shares on the go. On Tuesday, Tahera said it will file a final environmental impact statement for its wholly owned Jericho diamond project in Nunavut. The statement will be filed in January, and the company expects to begin construction in 2004. Production is slated to begin in 2005, and is projected to average 375,000 carats over 8 years.

Canada’s remaining gold majors finished well off Placer’s pace. Barrick Gold made 65 to reach $25.50 on about 1.7 million shares and Kinross Gold found a dime to make $2.93 with just fewer than 2 million shares on the go.

Other gold miners on the rise were: TVX Gold, plus 67 to $18.85; GoldCorp, 62 higher at $16.70; Glamis Gold, up 60 to $13.70; and Wheaton River Minerals, plus 8 to $1.03. Wheaton has revived a deal to sell its low-grade Bellavista gold project in Costa Rica to Glencairn Gold for US$250,000 in cash plus 750,000 shares. Glencairn balked on an earlier deal after a presidential decree banned open-pit mining. Glencairn has been assured that the government will support the project.

Alcan was the most active base metal miner with about 1.3 million shares trading up a dollar to $46 even. Inco saw about 1.2 million shares cross the floor to a 63 gain to $30.55.

Shares of Fording rose 40 to $33. On Wednesday, Fording announced that it would set up a data room to allow potential rival bidders a look at its books. The company has formally rejected a $1.5-billion from Sherritt International. Fording tabled a plan to convert to a income trust, a plan its still maintains would deliver the best value for shareholders. For their part, Sherritt’s shares finished 4 higher at $4.25.

Canada’s junior exchange jumped after the US Federal Reserve cut interest rate by 50 basis points. The Venture Exchange S&P Composite Index closed up 11.29 points, or 1.2%, to 944.29.

International Wayside Gold Mines lost a penny to close at 8 on 742,000 shares. The Frank Callaghan-led company has been drilling the Bonanza Ledge gold property near Wells BC.

Shares in Canadian Royalties finally settled down after running up following news that the company won the legal battle over a disputed ground on its Phoenix nickel-copper-platinum-palladium property in northern Quebec. Canadian Royalties finished the day at $1.45, up 3 on 559,700 shares.

Investors snapped up shares in Great Basin Gold following news that the Hunter Dickinson-led junior has inked a deal allowing the company the right to purchase a private South African entity, which holds an option to earn an 80% stake in the Burnstone gold property. Covering 400-sq-km of ground in the Witwatersrand goldfields, the property lies 100-km southeast of Johannesburg and hosts an indicated and inferred resource of 34.7 million tonnes grading 15.53 grams gold per tonne. Shares in the company closed at $1.11, up 17 on a volume of 210,720.