Trading Summary (February 28, 2003)

The Toronto Stock Exchange’s TSX Composite index fell 27.07 points to 6,555.12 on Friday, with eight of twelve market sectors losing ground. That was a signal for the gold group to head upward, and the TSX Gold index picked up 1.83 points, closing at 174.93, just over 1% ahead.

That said, there was a wide disparity between the performance of the gold stocks. The best gainer on the index, Placer Dome, added 53 to finish at $14.70, for a gain of 3.7%, and it was also the most active, with just under 2 million shares traded. At the same time, development-stage Gabriel Resources faded 18, or over 5% of value, finishing at $3.26, and Kinross Gold fell back 37 to $10.44.

In Gabriel’s case, news of an updated feasibility study on the rosia Montana gold project in Romania has hit the stock hard, from a close of $3.95 on Tuesday, immediately before the release, to $3.26 after three days of trading. The study indicated an undiscounted net present value of US$970 million at a gold price of US$350 per oz., and an internal rate of return ranging from 14.6% to 25.5% at gold prices of US$300 to US$400.

Except for Glamis Gold, which was down 20 to $16.60, the mid-tier amigos were all higher. Meridian Gold, which along with partner AngloGold is selling its interest in the Jerritt Canyon gold mine to junior producer Queenstake Resources, was up 60 at $19.35. Agnico Eagle Mines rose 53 to $20.47 and Goldcorp was up 34 to $17.04.

Barrick Gold, which was up 23 at $24.03, was in court on Friday with a motion to dismiss the suit filed against it by New Orleans-based gold traders Blanchard & Co. Blanchard alleged that Barrick and investment house J.P. Morgan Chase had conspired to manipulate the gold price; Barrick had already replied by launching a suit for defamation against Blanchard.

Gold bullion rebounded on Friday, with the London afternoon price fixed at US$347.45 and New York trading pushing prices to the high end of US$349.

The TSX Mining and Metals index fell along with the broader market on Friday, shedding 44 points to finish at 131.44. The most active on the base metal side was Aur Resources, which was up 13 at $4.08; the other gainers were Sherritt International, which was 7 higher at $4.86, and Cameco, which gained a quarter to close at $35.75.

Noranda fell 24 to $13.19, on news that parent Brascan would maintain a running subscription for Noranda $25 preferred shares. There is also still no progress in negotiations between the company and the workforce at the Horne copper smelter in Quebec.