Trading Summary (February 18, 2003)

Markets gained in most parts of the world on Tuesday, with perceptions of easing tension in the Middle East. The TSX Composite index added 28.44 points to close at 6,592.55, a modest increase in comparison with some markets, but one shared by most of the sectors. Even the golds, which bounced off two bad days, outpaced the broad market.

Bullion prices were still weaker, though, with the London afternoon price fixed at US$344.10 per oz. and New York trading finishing below US$343.

The gold index was up 1.3% or 2.38 points, closing at 184.16. Trading was heaviest in the big gold stocks: Barrick Gold was up 15 to $24.35 on a volume of 2.1 million shares, Placer Dome added 31 to $15.92 on 1.9 million, and Kinross Gold rose 11 to $11.29 with 2 million shares on the move.

Iamgold had the best price move, rising 18 to $7.58 for a gain of 2.4%. It announced additions to reserves at its operating Sadiola Hill and Yatela mines in Mali. Another mid-tier posting gains was Glamis Gold, which said today it had booked earnings of US$13.7 million (US14 per share) on revenues of US$80.8 million in 2002.

Off the gold index, Cambior was up a nickel at $1.88 and Eldorado Gold added 4 to close at $2.10.

The metals and mining index matched the pace of the broad market, picking up 0.49 point to close at 130.84. The top gainer was Noranda, which rose 22 to finish the day at $13.90. After the market closed, the company announced it had met with union representatives at its Horne smelter in Rouyn-Noranda, Que., to discuss a layoff of 125 employees there. The 550-strong Noranda Mine Workers Union (part of the Confederation of National Trade Unions) has been on strike at the Horne smelter since mid-June.

The heaviest trading among the miners was in Inco shares, with 888,000 riding the tape as Inco gained 20 to finish at $31.80.

Investors apparently didn’t want to wait for an announcement of an updated resource calculation at the Turquoise Hill copper-gold discovery in Mongolia, as they bid down Ivanhoe Mines 4 to $3.16 on a volume of 331,000 shares.

Canada’s junior exchange ended the day in lack lustre fashion with diamond explorers once again taking center stage. The S&P-TSX Venture Exchange composite index gained 0.39 of a point and closed at 1,088.33.

Investors continued to be enamoured with the diamond play on the Melville Peninsula in Nunavut. Shares of Northern Empire Minerals and Stornoway Ventures were two of the top three most actuivley traded issues. The partners recently picked up more ground in the vicinity of their Aviat project located 850 km northwest of the territorial capital of Iqaluit. So far, two diamond-bearing kimberlites have been identified on the Aviat property. Shares in Northern Empire lost 3 to close at $1.27 on a volume of 1.5 million, while stock in Storoway added 2 to close at $1.34 on nearly 2.5 million shares.

Shareholder bailed out of Hunter Dickinson-led Rockwell Ventures. The cash strapped junior main asset is the Ricardo copper property in Chile. During the second quarter of 2003, Rockwell terminated its option to earn a 60% participating interest in the Haut Plateau property in Quebec from Falconbridge. Rockwell ended the day at 4, down 2 on 784,000 shares.

Making a nice gain, Wolfden Resources added 32 to close at $2.02 on 609,849 shares. Earlier this month the company launched a drill program on the East Bay gold property in Ontario’s Red Lake gold belt.