Trading Summary (September 26, 2001)

News of 3,800 layoffs by aircraft manufacturer Bombardier plus another 5,000 by Air Canada sent the Toronto Stock Exchange lower by 47.18 points to end at 6,654.8 points on Wednesday, after two days of gains. The golds regained some glitter gaining 205.06 points or nearly 4% as investors scurried for cover. By day’s end just five of the TSE’s fourteen subindices were in the black. The base metal issues were not in that number, mirroring the golds with a 122.14 point or 3.5% loss to 3,332.25 points, nearer its 52-week low of 3,206.56. The U.S. markets saw similar results. The Nasdaq saw the biggest percentage slide, 2.5% to 1,464.04 points.

Platinum and palladium continue to fall in New York. Platinum lost US$5 to US$441 per oz. and sister metal palladium dropped US$27 to US$391 per oz. Fresh palladium supplies, predominantly from Russia, are undermining prices. Gold and silver went the other way. The yellow metal gained US$2.40 to hit US$291.75 per oz. and silver tacked on US8 to reach US$4.58 per oz. All of the base metals, except lower aluminum alloy, made small gains in Europe.

The usual suspects were among the TSE’s most active gold issues. Placer Dome gained 70 to $20.60 on nearly 4 million shares, Barrick Gold rose $1.50 to $27.27 on more than 3.6 million shares and Kinross Gold edged up 2 pennies to $1.55 with about 3.2 million shares traded.

Among the smaller producers, Wheaton River Minerals regained 6 or 11.8% to 57. On Tuesday, the company announced plans to sell its George Lake gold project in Nunavut to Kinross for 4 million shares. The company will also streamline its board and move its headquarters from Toronto to its existing Vancouver office. Other nice percentage gains were put in by Miramar Mining, which rose 13 or 13.7% to $1.08 and Denver-based Glamis Gold, which gained 40 or 7.6% to $5.70. In the junior ranks, McWatters Mining was up 18.5% at 16, River Gold Mines gained 14% to $1.65, Dayton Mining added 6 or 13.3% to hit 51 and High River Gold was 15% at 54.

Most of the country’s base metal miners suffered losses on the day. Inco was the busiest falling $1.65 or 8.4% to $17.90, a new 52-week low, on about 3.2 million shares. Falconbridge shed a quarter to $14.75, Noranda dropped 73 to $14.25, Alcan lost $1.75 to $45.50 and Breakwater Resources plummeted 6 or 24% to 19.

A recently tabled independent feasibility study of Breakwater’s Langlois zinc mine near Val d’Or, Que., recommends that $16 million be spent on development work before production resumes. The zinc miner’s bankers also recently granted it a one-month extension, to the end of October, to raise $16 million.

A late day rally helped Canada’s junior exchange keep its head above water. The Canadian Venture Exchange ended the day virtually unchanged, up 1.06 points to finish the day at 2,770.09. The Mining Index tacked on 22.08 points, or 0.3%, to close at 7,070.47.

Excellon Resources ended the day up 2 at 31 on 579,500 shares. The junior has resumed exploration and is gearing up to drill the Platosa-Saltillera base metal property in northwestern Durango State, Mexico.

Masuparia Gold tacked on a penny to close at 10 on 285,000 shares. The company launched an exploration program over the Greywacke gold property north of La Ronge, Saskatchewan.

Poplar Resources gained back most of yesterdays loses, adding 2 to hit 26 on 290,536 shares. The company’s 65%-owned subsidiary is currently drilling the third of a planned 20-hole program over the Bottenbacken polymetallic project, both in Sweden.

Shares in Radius Exploration continued to drift lower ending the day at 28, down 1 on a volume of 166,000. Investors sold off stock in the company following the latest results from the Tambor gold property in Guatemala. Prior to the start of drilling, shares of Radius hit $1.25.

Investors gave a lukewarm response to the initial drill results from the Stares-Calvert massive sulphide property in Ontario. Shares of 50%-owner RJK Explorations gained 2 to end the day at 65 on a modest volume of 80,900.