Trading Summary (September 05, 2001)

Tuesday’s small recovery on the Toronto Stock Exchange was short-lived as the 300 composite index fell 14.33 points to end at 7,447.7 on Wednesday. A 2.2% gain among the golds wasn’t enough to counter a 2.5% drop by the battered technology stocks. The techs suffered on news that France’s Alcatel would struggle to earn an operating profit this year.

Among the golds, Normandy Mining shot up $1.77, or more than 21%, to $10.17 after South Africa’s AngloGold announced a friendly takeover bid for the Australian-based gold miner. The offer’s exchange ratio of 2.15 AngloGold shares per 100 Normandy shares values Normandy at A$3.17 billion, or A$1.42 per share, based on AngloGold’s closing price on the New York Stock Exchange on Sept. 4. If successful, the bid would create a global gold company with combined annual production of 9.1 million oz. gold and a market capitalization of about US$5.5 billion.

Franco-Nevada Mining, which in April acquired a 19.9% interest in Normandy in return for its Ken Snyder mine in Nevada, climbed 95, or 4.8%, to $20.75 on about 1.2 million shares.

TVX Gold was the busiest miner with more than 1.35 million shares on the go. The issues climbed a nickel, or 6.4%, to 83 after Goldman Sachs raised its rating on the company to "market perform" from "market underperform" due to its improved financial position. TVX recently converted US$250 million in gold-linked convertible notes. The company also restructured its hedge position, eliminating exposure to gold lease rate swap obligations.

Most of the base metal majors traded sideways on the day and the Metals & Minerals subindex edged up 23.35 points to 4,148.64. Alcan was the busiest with just more than 530,000 shares on the go. The stock dropped a nickel to $57.85. The aluminum giant lowered its posted U.S. transaction price for September by 2 per lb. The price for 99.7% remelt ingot is now US70 per lb. and 6063 extrusion billet is US80 per lb.

Teck Cominco gained 34 to $12.29 on about 250,000 shares. The company announced that it will hold a news conference in Trail, B.C. It recently launched an internal investigation into how contract workers at the metallurgical facility became exposed to thallium during maintenance work in August.

Canada’s junior exchange fell below crucial support levels before some late-day buying lifted shares off their lows. The Canadian Venture Exchange plunged 32.95 points, or 1.1%, to finish the day at 3,001.51. The Mining Index lost 72.17 points, or 1%, to close at 7,506.90.

Poplar Resources managed to hang on to its new 52-week high of 32, ending the day flat on a heavy 1.13 million shares. The company recently raised $1 million to fund further exploration on its Swedish diamond and platinum-palladium properties.

Regent Ventures held on to its recent gains, ending the day unchanged at 29 on 256,000 shares. The junior is drilling the Red Mountain gold property in the Yukon.

Shares in Radius Explorations continued to take a drubbing, losing 11 on the day to close at 57 on a modest volume of 56,750. Despite the lack of news, stock in the Simon Ridgway-led company has fallen from over $1.20 per share to its current level in the past six weeks. The junior is drilling its Tambor gold property in Guatemala, where the first seven holes into the Lupita target returned broad intervals of low-grade mineralization (0.7-2.2 grams gold).

Leader Mining International continued to defy gravity, adding 16 on the day to close at $1.33 on 180,300 shares. The company is funding a small program over the Cogburn nickel project in B.C.

Expatriate Resources lost 3 on the news that it has terminated its agreement over the Kudz Ze Kayah base metal deposit in the Yukon. The company ended the day at 10 on 116,236 shares.