Trading Summary (August 17, 2001)

The gold and precious minerals and metals and minerals subindexes were the lone bright spot on the Toronto Stock Exchange on Friday. The golds rose 75.66, or 1.5%, to 4,956.05 and the base metal issues climbed 70.68 points, or 1.8%, to 4,045.02. The tech-heavy industrial products subgroup fell 88.35 points, or 2.3%. Overall, the TSE 300 composite index shed 66.67 points to close the week out at 7,502.8.

All of the precious metals ended the week in New York on a high note. Gold surged US$4 to US$279.10 per oz., platinum gained US$10 to US$446 per oz., palladium added US$7 to hit US$440 per oz. and silver tacked on a nickel to reach US$4.22 per oz. Tin and aluminum alloy were the lone casualties on the London Metal Exchange.

Miners were well represented on the TSE’s top 10 traded list. Kinross Gold rose 8 to $1.47 on about 4.5 million shares, Barrick Gold gained 54 to $25.96 on more than 1.8 million shares and rival Placer Dome found 5 to reach $17.40 with about 1.6 million shares traded. Nickel Giant Inco finished at $26.10, $1.19 above Thursday’s close, with about 1.7 million shares changing hands.

The country’s remaining gold miners posted across-the-board gains. Notables included TVX Gold, which regained a dime, or 17%, to 70 after falling on Thursday following a second-quarter net loss of US$2.5 million. Cambior rose 4, or more than 6%, to 70. The company completed a land-swap deal with Hope Bay Gold. For its part, Hope Bay gained a penny to 34. Echo Bay Mines grabbed 11, or 7.5%, to hit $1.58. The company reported a loss of US$400,000 in the second quarter of 2001, compared with net earnings of US$10.2 million a year earlier. First-half numbers were in the black to the tune of US$3.4 million, though down from net earnings of US$7.5 million a year earlier.

Results were more mixed among the base metal miners. Gainers included Falconbridge, up 39 to $16.41, Sherritt International, 7 higher at $4.88, Noranda, up 15 to $15.94, Alcan up 98 to $54.95, and Teck’s B series, up 13 to $12.45. On the minus side were Aur Resources, off 38, or 15%, to $2.22, Breakwater Resources, down 3 to 56, and Boliden, which shed 2 pennies to 31.5.

Canada’s junior exchange ended a lacklustre trading week by drifting lower. The Canadian Venture Exchange lost 7.44 points, or 0.2%, to finish the day at 3,087.19. The Mining Index plunged 76.38 points, or 1%, to close at 7,442.76.

Anatolia Minerals Development dropped 4 to 56 on 358,500 shares. The company’s joint-venture partner, mining giant Rio Tinto, recently cut up to 82 metres grading 10.4 grams gold per tonne at the Cukurdere property in Turkey.

Shares in Radius Exploration dropped following the release of the results from the remaining three holes at the Lupita zone on the Tambor gold property in Guatemala. Despite hitting broad zones grading between 0.7 gram and 1.3 grams gold per tonne in two of the holes, stock in the junior ended the day down 2 to 95 on 194,470 shares.

Despite confirmation of the high-grade nature of the companies’ newly acquired project, investors sold off shares in Cardero Resources and Ascot Resources after the juniors announced the results of a five-hole program over the Condoryacu gold property in Argentina. Shares in Ascot ended the week at 26, down 4 on a volume of 142,000, while Cardero lost a penny to 59 on low volume.

Cash-strapped Conquistador Mines ended the week unchanged at 1 on 354,000 shares. The company recently reported that it has been unable to attain funding for its Colombian operations and a liquidator has been appointed to attend to the dissolution of Corona Goldfields S.A. The junior does not expect to receive any proceeds from the liquidation.