Trading Summary (March 24, 2004)

With just three subindices finishing barely in the black, Toronto stocks ended Wednesday’s trading session 53.67 points lower at 8,420.85. Among those in the red were the golds, off 2.8 points at 221.79, and the diversified miners, down 4.13 points at 213.66.

Shares in Southwestern Resources jumped $4.90, or 15.4%, to $36.75 after the company reported more encouraging assay results from the Boka gold project in southern China. The company can earn a 90% interest in the project by spending US$4 million over four years, and paying US$1.7 million in cash and shares in the fourth year.

Glamis Gold too reported impressive results from reverse-circulation drilling on the La Hamaca prospect in Guatemala. The prospect lies about 3 km north of the company’s Marlin gold project, which is expected to begin producing in early 2006. The shares weren’t able to hang on to early gains, ending 2 pennies poorer at $23.20.

Canada’s major gold producers performed similarly: Placer Dome was the most active, falling 55 to $22.80 on more than 2 million shares, Barrick Gold dropped 17 on about half a million fewer shares, and Kinross gold shed 11 to $9.06 n nearly 1.2 million shares.

Another of the very few bright spots among the golds was Miramar Mining, which managed to add 13, or nearly 6%, to make $2.38. The company recently posted a net loss of $17.6 million (or 13 a share) for 2003, compared with year-ago earnings of $600,000 (1 a share). The latest financial results include writedowns and closure and severance costs related to the Con mine in Yellowknife. Underground mining at Con was terminated at the end of November, as production was significantly lower than expected.

The only bright spots on the diversified metals & mining index were Cameco, plus 82 at $65.46, Inmet Mining, 20 higher at $19.25, and First Quantum Minerals, which finished 48 higher at $15.08. Inmet recently reported that full production had resumed at its 18%-owned Ok Tedi mine in Papua New Guinea. One of the operation’s two semi-autogenous grinding mills had been shut down since late January.