Trading Summary (May 09, 2001)

All but two of the Toronto Stock Exchange‘s 14 subindexes finished the day in the black on Wednesday. Overall, the TSE’s 300 composite index rose 6.40 points to close at 8,070 .6. The two subgroups to finish lower were the technology-heavy industrial products and the merchandising subindex.

Gold finally jumped out of its rut, adding US$5.20 per oz. in New York to end at a two-month high of US$270.10 per oz. Brisk bullion buying was attributed by many analysts to jitters about over-hedging by failed Australian producer Centaur Mining and Exploration. The company fell into receivership in March. The rest of the precious metals were dragged up slightly.

The TSE’s gold issues benefited from the yellow metal’s revival. The gold and precious minerals subindex led the TSE, advancing 237.98 points, or nearly 5.1%. Kinross Gold, Placer Dome, Cambior and Barrick Gold all graced the TSE’s top 10 traded list. Kinross rose 15 to 97 on 6.6 million shares, Placer gained $1.05 to $17 on 5.2 million shares, Cambior added 5 to 53 on 4.9 million shares and Barrick climbed $1.40 to $26.85 on 3.6 million shares. Similar results were seen among most of the rest of the gold issues.

Also on the top 10 list was Cominco, which finished at $33.30, up 55. Other base metal miners on the rise were Inco, up 32 to $27.72, Sherritt International, up 6 to $4.34, and Boliden, up 12, or 25%, to 60.

Boliden has confirmed that it is in discussions with its lenders and potential investors regarding a refinancing and restructuring of its credit facilities and a possible equity offering.

Sherritt Coal (a partnership between metals and oil producer Sherritt International and a unit of the Ontario Teachers’ Pension Plan Board) has announced that 88% of the Luscar Coal Income Fund’s units were tendered to Sherritt’s sweetened offer. Unit holders who did not tender their shares now have until May 23 to do so.

Sherritt plans to address Luscar’s debt burden through a possible restructuring or repayment. Sherritt wants to build on Luscar’s business by integrating it with other energy-related operations.

The resource sector took centre stage as Canada’s junior exchange managed to post gains. The Canadian Ventures Exchange gained 9.38 points, or 0.3%, to finish the day at 3,157.70. The Mining Index surged 34.43 points, or 0.5% to close at 6,534.67.

Madison Enterprises ended the day at 12, up a penny on over 1 million shares. The junior has been working the Mt. Kare gold property in Papua New Guinea.

New Blue Ribbon Resources fell victim to profit taking for the second straight day as investors digest the news that the first two holes into the Moose diamond property in Manitoba cut significant widths of sulphides. Shares in the junior dropped 6 to 28 on 745,000 shares.

Despite the company’s announcement that no material changes have taken place, shares of Gulf International Minerals continued to climb, gaining 5 to end the day at 50 on 318,500 shares. The company recently announced a $1.55-million financing, which will be used to continue development at the Aprelevka gold project in Tajikistan.

Inca Pacific managed to tack on 1 on news that Anaconda Peru has launched a US$3-million exploration program over the Magistral copper-molybdenum property in Peru. Shares in the junior closed at 35 on 261,000 shares.

Francisco Gold made a rare appearance on the most actively traded chart, dropping 1 to $5.22 on 101,000 shares. The cash-rich company is working the Marlin oxide gold prospect in Guatemala and holds the El Sauzal gold deposit in Mexico.

Idaho Consolidated metal failed to get a boost after announcing that drilling has resumed on its platinum-palladium property in the Stillwater complex of Montana. The junior ended the day at $1.60, down 5 on a moderate 60,000 shares.