Trading Summary (October 29, 2002)

On Tuesday, a downbeat session on the markets set the Toronto Stock Exchange Composite index back to 6,294.81 points, a loss of 124.56, or 2% of value. The only sector to advance was the real estate subgroup, and yesterday’s leaders, the information technology stocks, were pounded back almost 6%.

The base metal stocks shared in the general misery, sliding 2.85 points to 123.92, but the golds, which had advanced strongly on Monday, pulled back only 0.99 points to 168.16. Further recovery in the gold price no doubt helped, with the yellow metal fixed at US$317.15 in afternoon London trading and slightly higher by the end of the day in New York.

Stock-by-stock, the picture was a little different, as apart from a retreat by index heavyweight Barrick Gold, which fell back 71 to $23.49, most of the golds were up. The heaviest trader — as has been customary of late — was Kinross Gold, which saw just over 6 million shares ride the tape, rising a penny to $2.64. Its merger partners were up modestly, with Echo Bay Mines 2 higher at $1.39 and TVX Gold adding 23 to finish at $16.86.

Iamgold fell another 8 to $5.08, although the street has reacted positively to its proposed friendly combination with Repadre Capital. Repadre was down 15 at $7.85, but neither stock was heavily traded.

The volume leader on the base metal side was Inco, which fell back 98 to $30.67. Along with Inco, Noranda, which was off 48 at $14.52, and Falconbridge, which was off 39 at $14.56, were enough to bring the subgroup down sharply.

Canada’s junior exchange traded heavily with 36,3 million shares changing hands. Despite the fact that advancers lost to decliners 250-to-280, the Venture Exchange S&P Composite Index managed to tack on 4.75 points, or 0.53%, and finish the day at 905.51.

American Nevada Gold lost 2 and closed the day at 10 on 630,000 shares. The company has arranged an option agreement with American Bonanza Explorations whereby American Nevada stands to earn a 50% interest in the Pamlico and Gold Bar properties in Nevada for $100,000 plus 800,000 shares of its stock over three years. In addition American Nevada must spend $3.6 million over a three year period on exploration.

Pan Asia Mining lost a penny and closed at 4 on 551,340 shares. The company has not maintained the requirements for a Tier 1 company listing on the exchange and has Tier classification has been changed to a Tier 2 company. At last report the company was exploring for diamonds on four parcels of land in the southern part of the Shandong province in China.

New Guinea Gold closed at 6, down 1 on 368,800 shares. The company reports that Nanotek entered into an option agreement in regard to certain projects it holds with Macmin PNG in Papua New Guinea. According to the terms of the agreement Nanotek was required to advance $500,000 to Macmin PNG by September 15, 2002. Nanotek has as of yet been unable to raise the money and is now in default of the agreement. If Nanotek is unable to obtain financing, Macmin PNG and New Guinea gold will seek alternate financing arrangements.