Trading Summary (January 20, 2004)

Toronto’s gold sector was one of three subindices to put in plus-2% gains on Tuesday ending 5.42 points, or 2.6%, higher at 212.09. The diversified miners managed to grab 5.86 points, or 2.6%, to reach 153.11. The energy stocks rounded out the top three with a 2.5% rise. Overall, the S&P/TSX Composite Index ended 43.28 points higher at 8,623.64.

McWatters Mining far outpaced the rest of the market with more than 55.5 million shares, more than 10% of its share base, trading half a cent lower to 2. The company recently filed for protection from its creditors. Tahera was the next closest mining issue with about 7.2 million shares trading their way 2.5 higher to 39.

Canada’s major gold producers were uniformly higher though Kinross Gold lagged behind tacking on a nickel to make $9.67. Barrick Gold rose 64 to $27.30 after reporting that it has reached production and cost estimates for 2003; production is expected to slip by about 10%, but is expected to recover thereafter as some new mines come on line. Placer Dome rounded out the trio advancing 46 to $21.46.

Better percentage gains were put in by some smaller miners, Etruscan Resources gained 27, or 11.5%, to hit $2.62, Golden Star Resources jumped 68, or 9.7% to $7.98, and Nevsun Resources added 38, or 7.6%, to reach $5.37. On Tuesday, Nevsun said it has acquired diamond exploration rights for a permit surrounding and including its 170-sq.-km Tabakoto and Segala permits in Mali. Previous workers turned up several kimberlite indicator minerals within stream sediments on Nevsun’s permit area. Up to 1997 some 24 kimberlite pipes and one kimberlite dyke had been found in the region. Recent heavy mineral work on the permit by Nevsun yielded a single microdiamond.

Alcan stood out among the major base metal issues suffering a loss of 21 to end at $59.36. Noranda was the busiest with about 1.7 million shares rising 44 to $20.79. Shares in Falconbridge added $1.79 to settle at $33.30. On Tuesday, Reuters reported that the union at Falconbridge’s Sudbury operation has accused the major of showing a lack of commitment toward contract talks. The union cites the lack of productive discussions and contends that the company has introduced new issues that were becoming stumbling blocks.