Trading Summary (July 18, 2001)

The recently diving metals and minerals subindex reversed its fortunes on Wednesday, leading the Toronto Stock Exchange with a 137.22-point, or 3.3%, gain. The gold and precious minerals subgroup also headed higher, gaining 113.41 points, or 2.5%, as investors fled the technology stocks amid more earnings fear. Overall, the TSE 300 composite index fell 73.63 points to end the day at 7,620.5. Only four of the exchange’s 14 subindexes finished in the black.

Shares of Alcan remained in investors’ minds. The aluminum giant regained $2.53, or nearly 4.5%, after taking a beating recently following a poor second-quarter profit report.

Most of the country’s other base metal miners followed suit. Inco regained 59 to $26.59 and Noranda climbed 30 to $16.60. Cominco and Teck, whose merger was approved by Cominco shareholders on Tuesday, gained 56 and 47, respectively. Cominco finished at $27.91 and Teck came in at $12.32.

Falconbridge rose 78 to $17.10 despite posting lower second-quarter earnings. The company’s profit was hurt by lower prices for its bread-and-butter metals, but did it manage to top analysts’ estimates.

Canada’s Gold miners were generally more active. Placer Dome led the way with nearly 1.7 million shares changing hands. The issue climbed 58 to $16.38. On Tuesday, Placer announced that it has won the right to negotiate a deal to operate the large Pueblo Viejo gold project in the Dominican Republic.

Other gold miners on the rise included Barrick Gold, up 35 to $23.75, Franco-Nevada Mining, 67 higher at $21.17, Homestake Canada, up 93 to $12.43, and Meridian Gold, up $1.25 to $11.15.

An up-tick in technology-related stocks failed to light a fire under other issues as Canada’s junior exchange lost ground for the third straight day. The Canadian Venture Exchange composite index dropped 15.14 points, or 0.5%, and closed the day at 3,090.15. The Mining Index lost 41.16 points, or 0.6%, and closed at 7,332.75.

Having recently resumed trading after a two-week hiatus for failing to file financial reports, shares in Mandorin Goldfields plunged to a new 52-week low, down 3 to 2 on 500,000 shares. At last count, the junior was evaluating platinum prospects on the East Coast of Africa.

American Bonanza Gold Mining, formerly Asia Minerals, ended the day flat at 4 on 563,000 shares. The junior has been trying to advance to low-grade Copperstone gold property in Arizona.

The latest drill results from the Boyongan copper-gold property in the Philippines sent investors running for the door. Despite broad zones of economic grades, shares in Philex Gold fell 28 in early trade before rallying to end the day at $1.22, down 18 on a volume of 134,000. Anglo-American is earning a 70% stake in the North property, which hosts the prospect.

Kensington Resources continued its winning ways, tacking on another 3 to end the day at 88 on 141,000 shares. The junior holds an interest in the Fort a la Corne diamond project in Saskatchewan, where 12 new holes have been completed on the 141 kimberlite body.