Trading Summary (March 03, 2003)

Toronto’s gold stocks took it on the chin on Monday as the yellow metal slipped another US$1.10 per to US$348.50 per oz. The TSX’s Gold Index led most of the other subindices lower with a 7.14-point or 4% slide to 167.79. The diversified miners were close behind dropping 2.75 points to 127.54 points. In the end, the tech stocks were alone in black edging up just 0.04 of a point to 15.99. Overall, the S&P/TSX Composite Index was 82.59 points lower at 6,472.53.

Nickel miner Inco was the most traded mining stock dropping $1.88 or nearly 6% to $29.87 on about 3.7 million shares. On Monday, Inco tabled plans to privately sell convertible debentures and subordinated convertible debentures for proceeds of up to US$500 million that will help reduce the company’s fixed charges. The convertible debentures are due 2023 and the subordinated notes are due 2052. Both have a semi-annual cash interest coupon. Proceeds wil go to redeem existing convertible redeemable preferred shares, or convertible debentures. Both offerings are expected to close in early March.

Placer Dome was the next miner in line falling 79 on about 2.5 million shares. On Monday, Reuters reported that a fire at Placer’s South Deep gold mine in South Africa killed one and sent three others to the hospital. Placer reported that three miners trapped in a control room suffered burns and smoke inhalation as they tried to escape into the mine’s shaft.

Also on Monday, Placer unveiled plans for a private placement of US$200 million worth of debentures due in 2033. Placer plans to use the proceeds to redeem all of its outstanding 8 5/8% junior subordinated debentures due at the end of 2045 at a total redemption price of $185 million plus accrued interest.

Next was Northern Orion Explorations, which swam against the stream to a penny gain to 16. Northern Orion recently inked a binding agreement with a subsidiary of BHP Billiton to purchase that company’s stake in the Agua Rica copper-gold-molybdenum project in Argentina and thus become its sole owner. For US$12.6 million, the junior gets 750 million tonnes of resources grading 0.99% copper-equivalent. The first instalment of US$3.6 million is due in late April; the rest, in mid-2005.

Aside from Inco, Canada’s base metal miners were a quiet bunch. Alcan and Ivanhoe Minerals each saw just fewer than 900,000 shares cross the floor. Alcan dropped a quarter to $41.91 and Ivanhoe ended 19 lighter at $3.16.

Canada’s junior exchange closed the day with advancers loosing to decliners 290 to 318. The S&P-TSX Venture Exchange composite index dropped 1.98 points, or 0.18%, and closed at 1,104.57, with 32.5 million shares traded.

Snowfield Development tacked on 5 and finished the day at 27 with 623,700 shares traded. Snowfield recently inked a deal New Shoshoni Ventures to earn a 50% interest in the Fate Mineral diamond property in the Northwest Territories in return for $20,000 cash, 200,000 common shares and $100,000 in exploration including 500 metres of diamond drilling this year.

First Au Strategies traded 488,000 shares but remained steady at 13. The junior recently arranged a private placement of up to 12. Million units at $0.10 per unit for gross proceeds of up to $1.2 million. The units will comprise both flow-through units and non flow-through units. The proceeds will be put towards exploration and drilling on the company’s Argosy Mine Property in the Red Lake district of Ontario and the Thorn property in northwestern British Columbia. First Au is earning a 51% interest in each of these properties.

Spider Resources closed flat at 6 with 445,000 shares traded. The company holds diamond prospects in the James Bay lowlands and in the Wawa region of Ontario and the Paranaiba region of Brazil.