Trading Summary – TSX (January 26, 2004)

A plus-2% gain by the technology stocks wasn’t enough to keep the Toronto Stock Exchange out of the red on Monday. The gold slipped 3.37 points to 201.73 and the base metal miners dropped 4.04 points to 223.39 to help the S&P/TSX Composite Index 9.81 points lower to 8,594.92.

Kinross Gold finished 9 lower at $6.91. After the market closed the company reported fourth-quarter gold-equivalent production of 406,000 oz. at total cash costs of US$216 per oz., generally in line with previous expectations. Kinross expects to produce some 1.75 million oz. at US$220-US$230 per oz in 2004. The higher costs reflect increased royalties thanks to an assumed gold price of US$400 per oz. and revised exchange rate. During the fourth quarter, Kinross trimmed 70,000 oz. of gold from its hedge, leaving it with 225,000 oz. that it plans to extinguish by the first quarter of 2005.

Shares in Pioneer Metals jumped 4.5, or 22%, to a quarter. On Monday, Claude Resources inked a deal to earn a 50% working interest in Pioneer’s Nokomis gold project in Manitoba, for $35,000 in cash plus at least $215,000 worth of exploration by Aug. 1, 2004. The property is reportedly home to an historic mineral resource of 349,110 tonnes grading 6.1 grams gold per tonne. The pair are also in talks regarding Claude’s future participation in the reactivation of Puffy Lake gold mine and mill, 70 km northeast of Flin Flon. For their part, Claude shares were off 6 at $1.84.

On the diamond watch, shares in Diamond Fields International dropped 7, or nearly 12%, to 53 after the marine diamond miner said it had suspended mining operations of the coast of Namibia thanks to rising costs related to the strengthening rand.