Trading Summary (March 26, 2002)

The golds reversed course a lost 154.74 points or 2.5% on Tuesday, following the lead of the yellow metal, which slipped US$1.60 to US$296.10 per oz. in London. Similarly the base metals rebounded to regain lost ground adding 49.22 points or 1.1% to hit 4,679.93. Overall, the Toronto Stock Exchange‘s 300 composite index tacked on 5.37 points to finish at 7,756.7.TVX Gold just managed to squeak into the TSE’s top ten traded list with more than 2.2 million shares traded. The issue was unchanged at $1.08. On Monday, TVX announced plans for a $75-million share offering. Under the deal, a syndicate of underwriters, led by BMO Nesbitt Burns, would purchase 71.5 million shares at $1.05 apiece. The offering is expected to close around April 12.

Trailing close behind was Kinross Gold, which dropped 9 to $1.90 on a volume of about 2.1 million shares. Last week, Kinross announced that it is extending until Mar. 28, its cash tender offer of $16 per share for Kinam’s $3.75 Series B Convertible Preferred shares it doesn’t already own. The company is also rumoured to be interested in buying TVX Gold and Echo Bay Mines.

Other gold miners seeing at least a million shares cross the floor included: Barrick Gold, down 75 to $28.75; Placer Dome, off 70 to $18.70, and mid-tier producer Agnico Eagle, which fell a dime to $20.95.

NovaGold Resources had 23 or 6.3% shaved off ending at $3.44. On Tuesday, the company tabled plans for a $20-million private placement to speed up development of the Donlin Creek gold deposit in Alaska.

The story was a bit brighter for the base metal miners with most making modest gains. Noranda was the busiest gaining 40 to $18.40 with just more than 1 million shares on the go. Inco climbed 45 to $30.80; Falconbridge grabbed 17 to hit $17.45; and Teck Cominco’s B series finished 11 at $14.81.

Alcan added 97 to reach $62.82. The aluminum giant expects aluminum consumption in industrialized countries to rise a modest 2 to 3% in 2002, but its is uncertain whether long-term demand growth is sustainable. Aluminum demand from western countries fell 6 percent last year and in the U.S. market dropped 12 percent, the biggest decline in more than 20 years. In November, aluminum prices hit a 30-month low of US$1,260 per tonne on the London Metal Exchange. On Tuesday it traded around US$1,400 a tonne.

Canada’s junior exchange managed to post a modest gain despite decliners leading advancers by a 237-to-229 margin. The S&P-CDNX Composite Index added 2.14 points, or 0.2% to close at 1164.77.

After more than doubling in value over the past month on no new developments, shares in Kensington Resources exploded gaining 61 to end the day at $2.15 on a heavy volume of 1.8 million. Diamond recovery results for 10 holes drilled at the Fort la Corne diamond project in Saskatchewan are expected any day now.

Shares of Samex Mining gave back most of yesterday’s gains, losing 3 to end the day at 36 on a volume of just over 900,000. The junior is trying to advance the Eskapa copper-gold property in Bolivia.

Macdonald Mines added 1 to end the session at 5 on just over 1 million shares. The company continues to tout a strategic presence in gold exploration in Cuba and is most recently exploring for palladium and platinum in northern Ontario.

Andean American Mining ended the day at 67, up 8 on 333,000 shares. The company has been advancing the Santa Rosa gold property in southern Peru. Operating on a small scale, the Santa Rosa mine is an open pit operationtreating 500 to 700 tonnes per day.