Trading Summary (May 14, 2004)

The Toronto Stock Exchange’s gold index outshined the rest of the subindices with a 4.38-point, or 2.4%, rise to 187.64 on Friday. The climb was powered by a US$2.30-per-oz. increase in the price of gold to US$376.70 in New York. The diversified miners went the other way losing three-quarters of a point to 198.54. Overall, the S&P-TSX composite index managed to scrape together 11.47 points to reach 8,188.08.

Nevsun Resources stood out among the gold index-dwellers with a 34, or plus-11%, jump to $3.41. On Thursday, the Vancouver-based company posted a first-quarter net loss of US$893,773, compared with a year-ago loss of US$121,912. The wider loss is mostly attributed to accounting for stock-based compensation.

Bema Gold was close behind gaining 28, or 9.2%, to make $3.32. On Friday, Bema said that its first-quarter net loss came to US$14.2 million on revenue of US$19.7 million. The loss includes a non-operating write down of US$8.5 million in the carrying value of the recently sold Yarnell property in Arizona. Bema’s restated earnings for the first quarter of 2003 totalled US$8.1 million on revenue of US$11.5 million.

Gabriel Resources managed to regain 14, or 9.3%, to end at $1.65. Earlier in the week the company’s shares dove after it warned of a probable yearlong delay at its Rosia Montana gold-silver project in Romania. The company doesn’t expect to break ground for mine construction until at least the second quarter of 2006. Resettlement and relocation of the Rosia Montana village and construction of new town sites at Piatra Alba and Alba Iulia are taking longer than expected. So too is the environmental permitting process for the mine.

LionOre Mining International was the busiest of the diversified crowd with more than 1.3 million shares making their way 26, or 4.8%, higher to $5.71. Late on Thursday, the company tabled net earnings of US$31.4 million for the first three months of 2004; during the corresponding period of 2003, the company made US$9.1 million. Revenue between the two periods nearly tripled to US$112.5 million. The dramatic increase comes compliments of a higher nickel price.

Alcan was next in line with a 24 gain to $53 even. On Friday, the aluminum giant said it had sold the aluminum aerosol can producer Boxal Group along with part of Alcan Packaging, to private Dutch company Exal Holdings. The sale price was not disclosed. The sale was required under the European Commission’s approval of Alcan’s recent acquisition of French rival Pechiney.