Trading Summary (June 12, 2001)

The Toronto Stock Exchange managed to edge up 2.98 points to end at 8,094.8 on Tuesday. The 300 composite index opened lower and gradually gained its feet throughout the day after a surprise profit warning, south of the border, from mobile-phone maker Nokia. By day’s end, only four of the TSE’s subindexes were in the red. The golds led gainers, rising 137.69 points, or 2.9%, to 4,972.22. The base metal issues went the other way, dropping 70.23 points, or 1.5%, to 4,558.35.

In New York, gold regained some of its lost ground, adding US$4.50 to close at US$272 per oz. Silver rose US4 to US$4.37 per oz., platinum dropped US$5 to US$574 per oz. and palladium slid US$12 to US$595 per oz.

Barrick Gold was the lone miner on the TSE’s top 10 most active issue list with more than 3 million shares on the move. The stock gained 96 to $26.16. Kinross Gold was a distant second among the rest of the gold issues with half as many shares traded. The issue gained 16, or 12%, to $1.49. Most of the rest of the field saw less dramatic gains. Goldcorp rose 45 to $16.20. The company recently upped this year’s production estimate at the Red Lake mine in northwestern Ontario to 440,000 oz. at a cash cost less than US$70 per oz. Goldcorp also expects earnings to come in at 49 per share, up from a previous estimate of 42.

Aur Resources was the most active base metal miner as 1.7 million shares changed hands. The stock fell 20 to $2.92. The company recently posted lower first-quarter profits of US$1 million (or 1 per share) on operating revenue of US$50.6 million, compared with the US$1.6 million (2 per share) earned on US$18 million during the first quarter of 2000.

Other busy base metal miners were Alcan, off $1.50 at $64.40 on 1.4 million shares, Teck’s B series, off 13 to $15.12 on 1.3 million shares, and Inco, up 8 to $27.23 on 940,000 shares. Boliden shot up late in the day and ended at 75, 9 higher. Thomas Cederborg, the company’s president, announced that he plans to resign after Boliden’s proposed equity and debt refinancing initiatives are completed.

The mining sector was the only bright spot on Canada’s junior exchange as all other sectors slumped into negative territory. The Canadian Venture Exchange composite index lost 19.47 points, or 0.6%, and closed the day at 3344.39. The mining index added 10.14 points, or 0.1%, to its value and closed at 7357.05.

IMA Explorations lost 2 and closed the day at 31 with just over 1 million shares crossing the floor. The company is in the process of a non-brokered private placement financing, which will consist of up to 3,000,000 units at a price of $0.26 per unit, to raise gross proceeds of $780,000. IMA has an impressive property portfolio in four key mining districts of San Juan province, Argentina, and within the Cajamarca Gold Belt in northern Peru.

Kenrich Mining lost a penny and closed at 5 on 663,000 shares. The company holds the Corey gold property in northwestern British Columbia and is focused on discovering an Eskay Creek-type deposit.

Independence Resources remained flat at 19 with 531,000 shares traded. The company is changing business and proceeding with a proposed acquisition of I Love TV, a private company based in Toronto. I Love TV is in the process of commercializing an interactive web-casting.

Inca Pacific Resources tacked on 5 and finished the day at 38 with 342,000 shares traded. The company and its joint-venture partner, Anaconda Peru, are in the midst of a US$3-million exploration and drilling program at the Magistral copper-molybdenum project in Ancash, Peru. Results are pending.

Erin Ventures closed at 36, up 2 with 328,000 shares traded. At last report, the company was in advanced negotiations with an international chemical and industrial mineral company, with the objective of forming a strategic alliance to develop the Piskanja Borate property in Yugoslavia.