Trading Summary (February 05, 2003)

After opening higher on a higher gold price, Toronto’s gold stocks finished Wednesday 5.79 points lower at 195.19. The yellow metal itself shed more than US$15 per oz. over the day to end at US$375.50 per oz. in New York, off US$3 from Tuesday. The diversified miners pulled out of their recent slid tacking on 1.18 points to make 130.54. Overall, the S&P/TSX Composite Index dropped 23.93 points to 6,521.Wheaton River Minerals was the most traded mining issues on Wednesday. The shares returned a nickel to hit $1.40 with on a trading volume of around 7.5 million shares. Most of the others performed as miserably.

Kinross Gold was next in line dropping 40 to $11.60 on 6.7 million shares. Kinross recently wrapped up its 3-way merger with TVX Gold and Echo Bay Mines to create the world’s seventh largest gold producer. In residual trading, TVX fell 60 to $25.20 and Echo Bay lost 4 to $2.01.

Mid-tier producer Glamis Gold shed $1.04 to $18.35. On Wednesday, Glamis said it will sell its half-interest in the Cerro San Pedro gold-silver project in Mexico to equal partner Metallica Resources for US$18 million. Based on a gold price of US$325 per oz., and a silver price of US$4.62 per oz., Glamis pegs mineable reserves at 49.2 million tonnes running 0.57 grams of gold and 23.0 grams of silver per tonne. Glamis will retain a gold-indexed net smelter return royalty (0.5-2%) on all mineral production. The deal is expected to close on Feb 12.

Inco saw the most action among the base metal miners. The shares rebounded to the tune of 56 to $31.21. Late on Tuesday, Inco posted a fourth-quarter net loss of US$1 million (or a nickel a share), compared with a year-ago net loss of US$5 million & per share). The latest fourth-quarter numbers include a non-cash charge of US$26 million relating to the review of the Goro project in the French overseas territory of New Caledonia.

Rival Falconbridge gained a dime to $16.75. On Wednesday, Falco posted fourth-quarter earnings of $33 million (or 17 a share), compared with a year-ago loss of $20.5 million (13 per share). The increase is attributed to higher nickel and copper prices.

America Mineral Fields grabbed 4 or 7.7% to reach 56. The company is optimistic recent peace negotiations will finally allow its Kolwezi cobalt-copper project in the Democratic Republic of Congo to be developed. Reserve are estimated at 112.8 million tonnes grading 0.32% cobalt and 1.49% copper, equivalent to 361,000 tonnes contained cobalt and 1.7 million tonnes contained copper. About 97% of the reserve is in the proven category.

Canada’s junior exchange fell victim to a falling bullion price with investors scurrying to lock in profits after making solid gains the past week. The S&P-TSX Venture Exchange composite index lost 14.24 points, or 1.26% and closed at 1,115.78.

Coming off a new 52-week high, American Bonanza Gold Mining lost 2 to close at 35 on just over 2.1 million shares. Stock in the junior has run up on news that Toronto-listed Gold Corp has taken a 10.4% stake in the company.

Newport Exploration lost 1 to close at 38 on 1.28 million shares. The Ian Rozier-led company is looking to launch a bulk sampling and geotechnical work program, along with metallurgical and pilot plant testing and completion of an updated feasibility study on the Minera Mantua copper project in Cuba.

Northern Empire Minerals dropped 8 to close at 77 on 1.17 million shares and partner Stornoway Ventures fell 14 to close at 78 on 913,194 shares. Shares in the junior have fallen for the past two days following a big run up on news that diamonds have been recovered from two kimberlite showings on the partners Melville Peninsula project in Nunavut. Located 850 km northwest of the territorial capital of Iqaluit, the Aviat project host at least two diamond-bearing kimberlites; the AV-1 kimberlite occurrence covers an 8-by-40 metre outcrop, where an 186.1 kg samples yielded 228 diamonds, with the largest stones measuring 2.2-by-1.86-by-1.32 mm, the second find comprises a series of angular boulders up to 50 cm in diameter. A 46-kg sample collected from the boulders yielded 92 diamonds with the largest stone measuring 1.02-by-0.62-by-0.52 mm.