Trading volume high for Wheaton River

The report period July 28-Aug. 3 saw the price of gold close down US$9.05 at US$390.95 per oz. in the afternoon in London. The Toronto Stock Exchange was closed Aug. 2 because of a civic holiday.

The gold index was down 3.8%, or 7.52 points, to close at 189.92. The diversified metals and mining index closed down 3.8% as well, or 8.53 points, to finish at 217.55. The S&P TSX composite index was up 0.5%, or 45.6 points, to close at 8,464.14 points.

Wheaton River Minerals led the way in volume, trading 15.7 million shares. The stock lost 8.5%, or 31, to close at $3.35. Wheaton River sent a letter to Coeur d’Alene Mines informing that company that the Silver Wheaton transaction will proceed on Sept. 9, two weeks following the expiry of Coeur’s takeover bid, if Coeur has not succeeded in acquiring 66.67% of Wheaton by the Aug. 27 deadline.

Barrick Gold traded second in volume, falling $1.14, or 4.3%, to close at $25.46 on a volume of 8 million shares. The gold giant reported second-quarter income of US$34 million, down 42% from the corresponding period last year on lower gold sales and higher total cash costs. Barrick also approved development of the US$1.5-billion Pascua-Lama gold mine on the Chile-Argentina border.

Metallica Resources traded 6.1 million shares (making it third in terms of volume for the report period), falling 10%, or 14, to close at $1.26. The company suspended construction of the Cerro San Pedro heap-leach gold-silver mine in Mexico in June. There has been no news released since then to account for the high volume.

Bema Gold traded 5 million shares, and was down 7.7%, or 26, to close at $3.13. Bema and Placer Dome have a joint-venture agreement regarding the Cerro Casale gold and copper project in Chile. Placer said its failure to reach a financing deal for the project does not breach its agreement and that it will speak with Bema regarding details of the financing. Placer is supposed to arrange $1.3 billion of the $1.65-billion required to build the mine.

Eldorado Gold traded 4.3 million shares and fell 2.9%, or 10, to close at $3.33. The company reported a decrease in revenue and a net loss in the second quarter. On the bright side, the shaft-deepening at the Sao Bento mine should be complete in August, and a construction permit for the Kisladag project in Turkey is on schedule for later this year.

Crystallex International shares rose 6.9%, or 20, to close at $3.08 on a volume of 2.6 million shares. Minca (Minera las Cristinas) informed the Venezuelan Supreme Court of its withdrawal of legal action against Crystallex. Corporacion Venezolana de Guayana sought to overturn the mining operation agreement for the Las Cristinas properties awarded by the corporation to Crystallex in mid-September 2002. The dropping of the lawsuit was one of the conditions required for international arbitration under the Canada Venezuela Bilateral Investment Treaty.