Trading Summary (July 18, 2003)

The Toronto market finished the week strongly, as the TSX Composite index picked up 45.30 points to close at 7,114.65 points, a gain of 0.6% on the day that brought the market back near its Monday open. All the sector indices advanced, but the telecommunications and information-technology stocks led the market with 2% gains.

The golds drew some strength from a rally in the bullion price, which was fixed at US$344.35 per oz. in afternoon trading in London, but pushed up to US$347.55 by the close of Comex trading in New York. The TSX Gold index, which had gone into negative territory early in the day, rallied to finish at 166.96, up 1.29 points or 0.8% of value.

All the golds on the index gained, except for Eldorado Gold, which was unchanged at $2.58. The volume leader was Placer Dome, which was up a dime at $16.45 on 1.8 million shares, but Kinross Gold was right behind, rising a nickel to $8.54. The other big gold, Barrick Gold, traded just over 1.7 million shares on its way to a gain of 10 and a close of $23.85.

The biggest gains came among the mid-tiers, with Agnico Eagle Mines up 33 at $15.01, Meridian Gold up 32 at $15.69, and Glamis Gold up 24 at $15.45.

Off the index, Thistle Mining fell 2 to 52. The company announced a US$24-million debt financing bearing interest at 10%. The issue can be converted to shares at a rate of 2,075 shares per US$1,000 of face value. The company plans to use the money for development work at its President Steyn gold mine in South Africa, and for a feasibility study at the Masbate gold project in the Philippines.

Like the golds, the base metals outpaced the broader market, with the TSX Metals and Mining index up 1.53 points at 134.59. The only index stock to lose ground was Falconbridge, which slid a quarter to $18.15. Parent Noranda was up 35 to $14.05 and announced its Noranda Income Fund, which holds the Canadian Electrolytic Zinc plant in Valleyfield, Que., had made $6.1 million in the second quarter of the year. Fund units fell a nickel to $9.60.

Another advancer was Ivanhoe Mines, which said it would be announcing a new resource estimate for its Turquoise Hill (Oyu Tolgoi) copper project in Mongolia on Monday. Ivanhoe was up 8 to $3.40 and saw almost 2.7 million shares trade, making it easily the most active of the base metal stocks Friday.

Among the Toronto junior explorers, Orezone Resources picked up 4 to close at 53 on a volume of just over a million shares. The company is currently exploring at its Essakan and Bondi gold properties in Burkina Faso.

Canada’s junior exchange ended the trading week on a high note with advancing issues out pacing declining stocks by a 330-to-274 margin. The S&P-TSX Venture Exchange composite index gained 5.32 points, or 0.48% and closed at 1,113.78.

Poplar Resources lost a penny to close at 6 on 316,500 shares traded. The junior announced plans to merge with Earth Star Diamonds. The combined companies will be dubbed Nordic Diamonds.

Spider Resources ended the day unchanged at 11 on 269,500 shares traded. The junior along with equal partner KWG Resources are in the midst of a 10-hole drill program over the McFauld’s Lake massive sulphide project on the Spider #3 property in the James Bay Lowlands of northern Ontario. KWG ended the day at 13.5, unchanged on 33,000 shares traded.

Marum Resources ended the day at 8.5, up 1, on 301,000 shares traded. The junior announced a $200,000 financing priced at 10 per unit. Marum holds an interest in several diamond projects and an interest in the B20 nickel-copper property near Port-Cartier, Quebec.