Trading Summary (June 03, 2003)

Toronto’s subindices were lower nearly across the board on Tuesday as the S&P/TSX Composite Index dropped 14.07 points to 6,926.09. The golds were among the biggest losers, dropping 1.37 points to 162.79. The diversified metals & mining index shed 0.7 of a point to 127.46.

With gold retreating US70 to US$365.20 in New York on Tuesday, most of the country’s gold miners headed south. Majors Barrick Gold and Placer Dome were exceptions, gaining 18 and 2 pennies, respectively. Barrick ended at $24.43 and Placer came in at $14.82. Canada’s remaining major gold producer, Kinross Gold, slipped 17 to $9.24. All three saw fewer than 2 million shares traded.

Wheaton River Minerals managed to outpace the majors, but dropped 3 to $1.48 on a trading volume of more than 2.9 million shares, enough to rank as the TSX’s busiest mining issue. Wheaton recently posted record first-quarter earnings of US$4.1 million, or 2 per share, compared with year-ago earnings of just US$262,000, or nil per share.

Inco was far and away the busiest base metal miner, ending $1.23 cheaper at $27.44 on about 2.2 million shares. On Tuesday, the western world’s biggest nickel producer, declared force majeure on certain nickel, copper, cobalt and other product sales contracts thanks to a strike at the company’s Sudbury, Ontario operations. The move will last until production at the operations resumes.

Also making news was LionOre Mining International, which finished 15 higher at $6 on about 1.5 million shares. LionOre has announced plans to merge with Aussie partner Dalrymple Resources.

Canada’s junior exchange remained stuck in a narrow trading range with declining issues out pacing advancers by a 352-to-299 margin. The S&P-TSX Venture Exchange composite index ended the day virtually unchanged, losing 0.78 of a point and closed at 1,090.20.

Donner Minerals held onto yesterday’s gains, adding 2 to close at 23 on over 1.5 million shares traded. At last report a 2,200-line km MegaTEM geophysical survey was underway on the eastern half of the South Voisey Bay nickel sulphide project in Labrador.

LMX Resources gave back recent gains, dropping 2 to close at 4.5 on 582,000 shares traded. The company was declared ‘Inactive’ on April 30, 2002 and is prohibited from granting stock options and has restrictions relating to management remuneration. LMX is expected to initiate its reactivation within twelve months of being designated Inactive and is required to achieve tier maintenance requirements no later than October 29, 2003, failing which trading may be suspended.

American Bonanza Gold Mines ended the day at 26.5, down half a penny on 473,000 shares. The junior is current exploring the Copperstone gold project by underground drifting and recently acquired exploration ground in Nevada.