Trading Summary (June 20, 2001)

Another batch of earnings warnings by technology companies helped send the Toronto Stock Exchange down another 27.17 points to close at 7,675.7 on Wednesday. Investors also took aim at a new target and battered the gold stocks. The gold and precious minerals subindex lost 130.59 points, or 2.7%, making it the biggest loser on the day. The base metal issues fell 31.31 points.

Kinross Gold took the dubious spot as the country’s most active gold stock, dropping 13, or 9.3%, to $1.27 on about 24 million shares. Barrick Gold fell 71 to $24.80 with 1.6 million shares traded. Both issues made the TSE’s most active list. The refrain was the same among most of the other gold stocks. Notable losses were turned in by Normandy Mining, off 50, or 5.3%, at $9, Placer Dome, 58, or 3.5%, lower at $15.92, and Meridian Gold and Hope Bay Gold, both more than 5% lower at $12.10 and 36, respectively.

The country’s base metal miners didn’t fare any better. Inco lost 77 to $26.33 and Falconbridge was off 40 at $17.10. Sherritt International and Noranda dropped 15 to $5.47 and $16.76, respectively. Cominco, up 2 pennies at $30.49, and Alcan, 16 higher at $61.65, were among the few to make gains.

Zinc production has stopped at Cominco’s 82%-owned Cajamarquilla smelter near Lima, Peru, where 350 union workers have walked off the job. The company would not speculate on what effect the strike will have on second-quarter or year-end production.

Alcan has announced that it has sold its lithographic sheet production plant in the United Kingdom, Star Litho, to Elval Hellenic Aluminium Industry of Greece as part of the conditions set by the European Commission for approving its merger with Alusuisse Group. The sale price was not disclosed.Canada’s junior exchange continued its recent slide as all indexes ended the day in the red. The Canadian Venture Exchange dropped 34.40 points, or 1.1%, to close at 3,241.50. The Mining Index followed suit, losing 57.15, or 0.8%, to close at 7,266.30.

North American Tungsten topped the most actively traded chart, losing 3 to 61 on 2.2 million shares. The company is in the midst of a $6-million financing aimed at re-opening the Can Tung tungsten mine in Canada’s far north.

Spider Resources closed out the day flat at 6 on 600,000 shares. The company recently announced initial diamond counts for the Kyle #3 kimberlite in the James Bay Lowlands of Ontario. The results from the first 13 samples showed low diamond counts. The results for an additional 28 are pending. The junior is also exploring the Sandor dyke, near Wawa.

Sur American Gold tacked on 2 to 9 on news that the company has acquired a 100% stake in three rare earth metal properties in Colorado. Sur American agreed to purchase the Rose Dawn, Climax and Texas Creek properties in Park and Fremont counties. The cost of the deal is US$64,000 and 200,000 shares, to be issued over a 2-year period.

Mano River Resources lost 2 to close at 11 on 400,000 shares. The junior has been actively exploring the Kpo Range license in western Liberia for diamonds. To date, six kimberlites have been identified.

A big percentage loser, Radius Explorations dropped 9 to 93 on 179,700 shares. The company is gearing up to drill-test the El Tambor gold property in Guatemala. South African-based Gold Fields recently agreed to purchase 1.9 million units of Radius at a price of $1.05 each. A unit holds one share and one warrant exercisable at $1.25 for one year.