Trading Summary (May 31, 2001)

Cautious investors rummaged around for bargains in the ruins of six straight sessions of declines on the Toronto Stock Exchange on Thursday. The financial services sector rose 226.71 points, or 2.2%, to lead the way at 10,620.01. The base metal issues crept up 37.90 points to end at 4,827.41. The gold stocks were not as lucky, falling another 104.88, or 2.15%, as gold continued to dive by another US40 to US$265.50 per oz. in New York. Overall, the TSE’s 300 composite index picked up 60.49 points to end at 8,161.9.

Barrick Gold was one of the TSE’s most active issues with more than 1.6 million shares changing hands. The stock fell 65 to $25.30 on its third consecutive day of losses. Swimming against the stream were Kinross Gold, up a penny to $1.18, Glamis Gold, 11 higher at $3.76, and Wheaton River Minerals, up 4 to 80.

Barrick says its El Indio gold mine in Chile will shut down for three months, beginning in mid-June. This will lower its 2001 gold production target to 90,000 oz. from the previous 110,000 oz. The move will cause 180 layoffs. The mine posted a first-quarter operating loss as production costs rose to $266 per oz., due to lower copper grades and decreased production. El Indio was slated to close in 1997, but cost-cutting in 1999 kept it open. Exploration will continue during the closure.

Franco-Nevada Mining and Normandy Mining were also among the stricken, falling 58 to $19.02 and 7 to $8.53, respectively. Franco-Nevada has announced the completion of its deal with Normandy, whereby Franco gives Normandy the ownership of the Ken Snyder mine and Midas exploration properties in Nevada, as well as its Australian interests. Franco also subscribes for US$48 million in Normandy shares. In return, Franco receives 446.1 million Normandy shares, representing a 19.99% interest in the company. Franco retains a minimum 5% net smelter return royalty on the Ken Snyder mine and the Midas exploration properties.

Teck’s B series was the most active base metal stock with nearly 1.4 million shares on the move. The issue gained 50 to $16.60. Falconbridge put in the best percentage gain, rising 98, or 5.4%, to $19.18. Noranda was on the flip side, falling 15 to $16.65.

Teck and Noranda announced that the $US2.3-billion Antamina copper-zinc project has reached mechanical completion more than two months ahead of the original schedule. Other partners in the massive Peruvian project include London-based Billiton and Japan’s Mitsubishi.

Canada’s junior exchange staged a modest recovery following two down-days. The Canadian Venture Exchange climbed 15.95 points, or 0.5%, to finish the day at 3,332.89. The Mining Index gained 49.73 points, or 0.7%, to close at 7,165.36.

New Blue Ribbon Resources lost 1 to 17 on 379,500 shares. Stock in the junior appears to have found a bottom following disappointing assay results from the first round of drilling on the Moose diamond property in Manitoba. The company’s joint-venture partner, BHP Diamonds, tested seven magnetic anomalies on the project and hit no kimberlites. The junior’s shares tumbled on the news.

Madison Enterprises lost 3 to 11 on 333,250 shares. The junior has been trading heavily over the past few weeks as the price of gold swung up to US$294 per oz., only to once again fall to US$265 per oz. Madison holds the large Mt. Kare gold property in Papua New Guinea.

Gulf International Minerals dropped 3 to 50 on 125,500 shares. The company recently announced plans to continue development of the Aprelevka gold mine in Tajikistan.

Philex Gold tacked on 12 to end the day at $1.65 on a light 37,200 shares. The small gold producer has been trading in a narrow range ahead of further drill results from the coupled high-sulphidation, copper-gold porphyry system at Boyongan in the Philippines.