Trading Summary (January 02, 2004)

The Toronto market was higher in the first day’s trading of 2004, as the TSX Composite index rose 72.81 points to 8,293.70. The only sector left behind was real estate, and the base metals were behind only the telecommunications utilities and the information-technology stocks in percentage terms, gaining 3.25 points or 1.4% of value to close at 233.69.

Nickel made record high prices again, closing the London curb sessions at a cash settlement price of US$16,695 per tonne. Almost all the nickel producers advanced: Sherritt International took the checkered flag with a rise of 30 to close at $7.40, Inco was up 59 at $52.24, Falconbridge 54 at $31.90, and LionOre Mining International 3 at $8. Only FNX Mining was off, falling back 11 to $8.21.

Copper producers did well too, as the red metal finished the London curb at US$2,365 per tonne. Aur Resources was up 23 at $6.98, and First Quantum Minerals climbed 39 to $14.46.

Over in the golds, it was a positive day, but the equities lagged the broad market. Gold bullion was down slightly on the day, with the London fix at US$415.25 and light Comex trading finishing at US$415.30. The TSX Gold index was up 1.20 points, or 0.5%, at 229.06.

With no particular direction in the gold equities, the index was driven by the heavyweights: Barrick Gold was up 35 at $29.66, Placer Dome rose 29 to $23.46, Goldcorp closed at $20.47, up 14, and Kinross Gold tacked on 13 to close at $10.45.

Canada’s junior exchange started the trading week and New Year off by moving steadily higher as the session drew to a close. The S&P-TSX Venture Exchange composite index ended at its daily high, gaining 14.56 points, or 0.82% and closed at 1,765.84.

Newly named China Diamond added 4.5 to close at 29.5 on 1.1 million shares traded. The company has changed its name from Pan Asia Mining Corp. The company has a controlling interest in a Sino-Foreign joint venture company in the Shandong Province in the People’s Republic of China. The Joint Venture Company owns and operates the 701 Changma Diamond Mine.

Goldcrest Resources added 14 to close at 60 on 1 million shares traded. Formerly Ventaur Capital, Goldcrest has started work on its Youanmi property 400 km northeast of Kalgoorlie in Australia. The junior expected a 1,000 metre drill program to be complete before the end of 2003.

Taseko Mines jumped 31 to close at $2.46 on 713,200 shares traded. A mining investment partnership is looking to raise up to $35 million in an effort to resume operations at the historic Gibraltar copper mine in south central British Columbia. Dubbed the Gibraltar Reclamation Trust (GRT), the limited partnership agreed to finance a qualifying environmental trust, which will allow the operating subsidiary of owner Taseko Mines to access funds already held as a reclamation bond by the BC government. For its part, Taseko contributes the mine assets and agrees to finance the start-up expenses for the Gibraltar operation. The Hunter Dickinson led junior then inked a one year option to buy the GRT partnership for 130% of the contribution made by GRT to the environment trust, estimated at 90% of the financing. The agreement, which is restricted to 2004, is payable in stock or cash.