Trading Summary (November 04, 2002)

The Toronto Stock Exchange followed most of the world’s other bourses higher on Monday, with the S&P TSX Composite rising 111.25 points to 6,432.65 points.

The only weak sector was the Metals and Mining group, which fell a fraction of a point to 122.98. Even so, most of the companies in the subgroup were higher, including Teck Cominco, which was 15 better at $10.85, Noranda, up 15 to $14.80, and Falconbridge, up 20 to $14.90.

The most active stock was Inco, which went the other way, falling 9 to $30.20 on a volume of 1.1 million shares. Aur Resources showed the biggest percentage loss, falling 18 to $2.80. The best percentage gainer on the day was LionOre Mining, which closed at $4.30, up 15.

London gold was US$317.55 per oz. at the afternoon fixing session, and crept over US$318 in later New York trading. The TSX Gold group was 4.55 points higher at 174.25 with all but two of the component companies advancing — the exceptions were Agnico-Eagle Mines, which was off 2 at $19.25, and Glamis Gold, whih fell a quarter to $13.

Unusually, it was Placer Dome, which has been a laggard in the resurgence of the gold group, that tacked on the best gain of the day, a 95 jump to $15. It had no story to tell, apart from Friday’s umpteenth extension of the offer for Australian producer AurionGold, in which it now holds a 78% stake. It needs 90% to trigger a compulsory trade-in under Australian securities laws.

However, people may be recognizing that only a few companies fit the profile of the one that had earlier been stalked by Goldcorp, which revealed in its quarterly report that it had taken a small position (worth about $121 million) in another gold producer, representing about 4% of the target company’s shares. Only Placer and Meridian Gold are around that size. Goldcorp, in passing, was up 52 at $15.92, and Meridian added a quarter to finish at $26.95.

Off the gold index, McWatters Mining was the volume leader, closing unchanged at 16.5 with 2.7 million shares moving. There was also heavy trading in Wheaton River Minerals, which was off a penny at 96, and Eldorado Gold, which added 4 to close at $1.59.

Canada’s junior exchange started the trading week off on a positive note as investors started to nibble on stocks ahead of the US Federal Reserve interest rate meeting slated for Wednesday. The Venture Exchange S&P Composite Index closed up 5.02 points, or 0.54%, to 929.12.

Pan Asia Mining was the most actively trade junior explorer, ending the session flat at 7 on over 2.7 million shares. The company has not maintained the requirements for a Tier 1 company listing on the exchange and has had its classification changed to a Tier 2 level. The junior is exploring for diamonds in China.

Investors continued to snap up shares of Canadian Royalties following news that the company won the legal battle over a disputed ground on its Phoenix nickel-copper-platinum-palladium property in northern Quebec. Canadian Royalties finished the day at $1.10, up 7 on 212,900 shares.

A big percentage loser, Minera Andes lost 7 to close at 30 on 191,008 shares. Permits are in hand to proceed with underground exploration-development on its Huevos Verdes gold-silver project in southern Argentina. The nearly 1-million oz gold resource is a joint venture between the junior and Peru-based Mauricio Hochschild & Cia. Ltda.