Trading Summary (May 16, 2001)

After spending a day digesting the latest cut in U.S. interest rates, investors on the Toronto Stock Exchange headed for the cyclical stocks. The gold & precious minerals subindex vaulted 218.69 points, or 4.5%, to 5,104.53 and the metals & minerals subgroup climbed 207.18 points, or 4.3%, to 5,050.99. Both hit new 52-week highs. Overall, the TSE 300 composite index gained 104.29 points to end at 8,146. All of the subindexes finished in the black.

Canada’s mining companies were well represented on the TSE’s most active list. Kinross Gold, Teck, Cominco, Barrick Gold, Placer Dome and Franco-Nevada Mining all made appearances.

Among the golds, Kinross rose 21, or 22%, to $1.16, Barrick gained $1.09 to $27.59, Placer climbed 51 to $17.76 and Franco tacked on $1.30 to hit $20.30. Gold itself finished the day at US$272.10 in New York, up US$4.30 from its previous close on stop-loss orders and fund buying.

Teck led the base metal issues with more than 4.8 million shares on the go. The issue climbed a quarter to $15.33. Cominco was close behind, gaining 22 to $33.16 on 4.4 million shares. Boliden stood out from the rest, falling a penny to 86.

Boliden said it had nothing new to say regarding the possible sale of its Chilean copper interests to Falconbridge. Falconbridge says it has completed its due diligence of the Lomas Bayas mine and the adjacent Fortuna de Cobre copper property and is ready to close the deal.

Canada’s junior exchange posted stellar gains ahead of the B.C. provincial election results. An anticipated win by the more mining-friendly Liberal party was welcomed by a triple-digit jump in the Mining Index. The Canadian Ventures Exchange gained 30.08 points, or 0.9%, to finish the day at 3,211.26. The Mining Index surged 158.16 points, or 2.4%, to close at 6,770.03.

Madison Enterprises continues to trade heavily without the announcement of any new developments. The junior ended the day flat at 11 on 333,000 shares. The junior has been working the Mt. Kare gold property in Papua New Guinea.

Raymor Industries not only held on to yesterday’s gains, but managed to tack on another 2 to close at 57 on 218.171 shares. The company recently announced plans to build an industrial-scale pilot plant aimed at producing high-purity lithium metal.

Shares in New Blue Ribbon Resources appear to have settled into a trading range ahead of drill results from the Moose diamond property in Manitoba. The Edmonton-based junior’s stock had doubled on news that joint-venture partner BHP hit significant sulphides on the first two holes drilled into the property. New Blue Ribbon ended the day down 1 to 28 on 284,400 shares.

International Wayside Gold Mines showed signs of life, climbing 5 to 29 on 193,400 shares. The Frank Callaghan-led company has been drilling the Bonanza ledge gold prospect near Wells, B.C.