Trading Summary (June 27, 2001)

Investors on the Toronto Stock Exchange seemed unimpressed with the U.S. Federal Reserve’s modest quarter-percentage-point cut to interest rates on Wednesday. Despite the cut and the Fed signalling that it would do more to boost a sagging economy, the TSE’s 300 composite index fell another 81.41 points, or 1.1%, to 7,530.6. The oil and gas and financial services issues led the slide, off 3.3% and 2.4%, respectively. The gold issues fared no better, falling 88.33 points, or 1.9%. The base metal issues were among only five advancing subgroups, gaining 64.58 points, or 1.5%.

Barrick Gold was the most active miner with just more than 3 million shares changing hands as it lost 19 to $23.41. Teck gained 23 to $12.98 with 2.9 million shares traded. Both finished in the middle of the TSE’s most active list.

The country’s gold miners experienced mostly losses on the day. The few gainers included TVX Gold, up 4 to 93, and Normandy Mining, up 50 at $9.50. Many analysts see Normandy as a possible target for an acquisition by Barrick. Some of the bigger losers among the golds were Kinross Gold, off 12, or 8.5%, to $1.30, Goldcorp, $1.08, or 6.2%, lower at $16.25, Hope Bay Gold, down 6, or 15%, at 34 and Wheaton River Minerals, which lost 6, or 7.1%, to 78.

Inco was the busiest base metal issue with about 1.2 million shares on the go. The stock tacked on 20 to hit $25.84. The company recently announced the selection of construction contractors for its Goro lateritic nickel deposit on the French Pacific island of New Caledonia. The company is also in negotiations to revive its long-stalled Voisey’s Bay nickel project in Labrador.

Noranda fell 30 to $16.30. The company’s stock began trading on the New York Stock Exchange on Wednesday. After opening at US$11, it slipped to end the day at US$10.76. Swedish-Canadian miner Boliden edged up a penny to 60. The company has announced the appointment, effective Aug. 1, of Jan Johansson as its new president and CEO.

Canada’s junior exchange continued to sing the summer time blues with all indexes ending the day in negative territory. The Canadian Venture Exchange ended the day down 34.38 points, or 1.1%, to close at 3,196.55. The Mining Index dropped 12.95 points, or 0.2%, to close at 7,376.53.

Cantex Mine Development caught the eye of investors following the discovery of five main gossan horizons within the Wadi Qutabah layered gabbroic complex in Yemen. The junior thinks the complex could be part of a much bigger layered complex that also hosts the company’s Suwar nickel-copper-cobalt prospect, some 23 km to the south. Shares in the company ended the day flat at 9 on over 1.1 million shares.

American Bonanza Gold Mining, formerly Asia Minerals, closed out the day unchanged at 4 on 516,000 shares. The junior has been attempting to advance the low-grade Copperstone gold property in Arizona.

Kenrich Mining lost a penny to close at 5 on 379,000 shares. The junior holds the Corey massive-sulphide property in northwestern British Columbia.

Aquest Minerals ended the day at 8, up 1 on 260,000 shares. The company was recently granted the Orienta, Olopa and Siete Caminos gold concessions in Guatemala.

New Blue Ribbon Resources touched a new 52-week low before ending the day at 10, down 1 on 251,800 shares. The Edmonton-based company has a joint venture with BHP Diamonds over the Moose property in Manitoba. To date, seven magnetic anomalies have been drill-tested. No kimberlite bodies have been encountered.