Trading Summary (August 28, 2001)

A rate cut of 25 basis points, coupled with a gloomy forecast by the Bank of Canada and a sharp drop in U.S. consumer confidence, dragged the Toronto Stock Exchange down 93.84 points, or 1.1%, to 7,578.4 on Tuesday. The TSE’s 14 subindices suffered losses nearly across the board. The pipelines subindex was the lone gainer, rising 35.2 points to 6,412.76. An 11% rise in third-quarter profits for Bank of Montreal failed to inspire the rest of the market. The golds lost 26.52 to hit 4,793.25 and the base metal issues fell 74.62 to 4,145.98.

The refrain was the same among the other major North American markets. The Dow Jones industrial average fell 1.5% on the day to 10,222.03 points, the Nasdaq index slid 2.5% to 1,864.98 and the S&P 500 index dropped 1.5% to 1,161.51 points.

Palladium put in the best showing among the precious metals in New York, gaining US$22 to US$462 per oz. Sister metal platinum found US$1 to hit US$455 per oz. Gold and silver were both slightly lower. After a day off on Monday, the base metals were modestly higher across the board on the London Metal Exchange.

TVX Gold was far and away the busiest gold issue with more than 3.5 million shares on the move. The stock climbed 8, or 11.6%, to 77. The company announced that it has restructured its hedge position, eliminating its exposure to gold lease rate swap obligations. TVX ‘s restructured gold hedge book covers all of its planned gold production through 2003, declining to 75% through to 2006.

Barrick Gold was next in line with nearly 1.5 million shares traded. The issue fell 60, or 2.3%, to $24.85. Franco-Nevada Mining lost 24 to $19.65. Placer Dome gained 39 to $17.14.

Wheaton River Minerals dropped 3, or 4.7%, to 61. Wheaton posted considerably lower net earnings of $525,000 for the three months ended June 30. The company’s seasonal Golden Bear mine in northwestern British Columbia, which has been running in leach-only mode, is slated to close by year-end.

Boliden led a quiet bunch of base metal miners. The Swedish-Canadian company jumped nearly 35%, or 11, to 43 with about 3.6 million shares traded. The company recently completed a US$243-million equity offering tied to a bail out package. The refinancing deal should wrap up by the end of August.

Most of the others suffered losses. Inco dropped 56 to $26.14, Noranda lost 26 to $16.17, Alcan shed 92 to $57.43 and Teck-Cominco slid 70 to $12.

Teck-Cominco says it is trying to determine how 65 workers at its Trail lead-zinc smelter in B.C. were contaminated by thallium, a highly toxic metal linked to nerve damage.

Uranium producer Cameco dropped 51 to $35.74. According to Reuters, a report from Lake Keepers Ontario says the Port Granby storage site, about 100 km east of Toronto, has been leaking toxic substances, such as arsenic and uranium, into Lake Ontario continuously over the past two decades. Cameco manages the facility. A company spokesman, Jamie McIntyre, told Reuters: “For the responsibilities that we have, Cameco has met all of the regulatory requirements for the affective and safe operation of the site.”

Canada’s junior exchange dropped for the second straight day led by a 2.2% plunge in issues related to oil and gas. The Canadian Venture Exchange fell 22.70 points, or 0.7%, to finish the day at 3,048.06. The Mining Index lost 69.02 points, or 0.9%, to close at 7,407.53.

A nice percentage mover, Gold Canyon Resources gained 15 to close out the day at a new 52-week high of $1.25 on 127,600 shares. The junior announced the discovery of three new gallium-bearing zones on the Cordero property in Humboldt County, Nev.

Gulf International Minerals climbed 6 to 41 on 122,500 shares. The company recently tabled an update on engineering and construction progress at its two Tajikistan gold mine sites, Aprelevka and Kansai. The aim is to open both operations at the same time.

Having recently raised $1 million, Poplar Resources is managing to hold recent gains, rising 2 to 30 on 401,750 shares. The company’s 65%-owned subsidiary is exploring the Bottenbacken platinum-palladium project in central Sweden.

California-based Conquistador Mines ended the day flat at 1 on 327,500 shares. The cash-strapped company hit a 52-week low following news that it has been unable to attain financing for its Colombian operations. As a result, a liquidator has been appointed to attend to the dissolution of Corona Goldfields. The company does not expect to receive any proceeds from the liquidation.

Shares in Radius Explorations continued to drop like a stone despite the absence of any new developments. Following yesterday’s 11 slide, stock in the company fell another 5 to 70 on 89,600 shares. The Simon Ridgway-led junior is drilling the Tambor gold property in Guatemala. The first seven holes into the Lupita target returned broad intervals of low-grade mineralization (0.7-2.2 grams gold).