Trading Summary (October 23, 2001)

After a surprise boost from the Bank of Canada, which dropped a 75-basis-point rate cut on the market, the Toronto Stock Exchange ended the day 0.97points lower at 6,904.24. The Metals & Minerals subindex again led the way with a 2.3% gain to 3,687.86 points. The golds were less fortunate slipping another 40.66 points to 4,792.95. In all, five of the TSE’s fourteen subindices managed to end in the black.

All of the shinnies made modest gains to end the day in New York. The base metals performed as well on the London Metal Exchange.

Placer Dome was Canada’s busiest mining issue with nearly 3.6 million shares changing hands. The stock lost 35 to $16.85. Barrick Gold saw about 2.2 million shares cross the floor to fall 30 to $24.30. Other gold miners on the slide were TVX Gold, off 2 to 70 and Franco-Nevada Mining, which finished down 45 at $21.80.

On the flip side was Goldcorp, which gained 41 to $17.20. Late on Monday the company posted strong third-quarter earnings of US$10.6 million (or 13 per fully diluted share) on revenue of US$34.6 million, compared with a year-ago loss of US$200,000 (nil per share) on US$17 million. The company’s red Lake mine in northwestern Ontario churned out a record 468,952 oz. of gold at a cash cost of US$86 per oz., during the first nine months of 2001.

Alcan led the country’s base metal miners with just less than 1.3 million shares on the move. The aluminum giant’s stock gained $1.30 to $51.29.The issues has regained its footing after dipping on news of plans to cut up to 3,640 jobs in the face of weakening aluminum prices.

Nickel miner Inco gained 83 to $22.70 on about half as many shares. On Tuesday, Inco posted third-quarter profit of US$33 million, on sales of US$434 million, compared with year-ago net earnings of US$62 million on revenue of US$642 million. On a per-diluted-share basis, earnings fell from US29 to US14.

Inco also says that it is close to deciding on a partnership for its Goro project in New Caledonia. Inco’s CEO Scott Hand said during a conference call that the company was in talks with a number of parties interested in a 30% stake in the US$1.4 billion nickel project. Goro is slated to hit production in late 2004.

Noranda gained 28 to $14.33 despite reporting a third-quarter loss of $60 million (or 27 per share, down from year-ago earnings of $52 million (20 per share). Revenue between the two periods slid to $1.46 billion from $1.66 billion.

The larger than expected Bank of Canada rate cut had little impact on Canada’s junior exchange with the subindices ending the day little changed on light volume. The Canadian Venture Exchange ended the day up 6.20 points, or 0.2% to finish the day at 2,931.66. The Mining Index slumped 10.97 points, or 0.1%, to close at 7,382.50.

Starfield Resources ended the day flat at 48 on 233,800 shares. The junior is investigating the prospects of a high-grade, platinum-palladium zone in the hanging wall of its West zone on the Ferguson Lake project in Nunavut. Hole 101 cut a 0.35-metre section running 26.7 grams platinum and 103 grams palladium from 962.28 metres down-hole.

Investors continued to sell-off shares in Poplar Resource ahead of initial drill results from the Bottenbacken polymetallic project in Central Sweden. The company’s 65%-owned subsidiary is currently in the middle of a planned 20-hole program over the property. Assay results from the first hole into the Bell zone returned only weakly anomalous platinum-copper-gold values. Poplar Resources ended the day at 15, down 1 on 208,000 shares.

Thomas Patton-led Quaterra Resources fell 1 to close out the week at 21 on 118,000 shares. Initial drill results from a four-hole program over the Union Bay platinum project in Alaska are expected any day now.

After a strong run, Sultan Minerals fell victim to some profit taking early in the session only to rebound later in the day to close at 50, down a penny on 125,000 shares. The junior is currently drilling the Gold Mountain zone on its Kena property near Nelson BC. The latest results included a 2-metre section running 172.1 grams gold.