Trading Summary (April 01, 2003)

Toronto’s gold stocks returned much of their recent gains, falling 7.1 points or 4.4% to 153.99 on Tuesday. The slide was powered by a US$1.60-per-oz. drop in the gold price, which settle at US$334.30 in New York. The base metal miners weren’t any better off shedding 1.35 points to 122.58. Overall, the S&P/TSX composite Index ended 8.17 points lower at 6,335.12.

Mid-tier gold producer Agnico-Eagle Mines led the declining gold miners, plummeting $2.88, or more than 15% of value, to $16.22 with nearly 4 million shares traded enough to rank as the TSX’s most active mining stock. Late on Monday, the company reported a rock fall at its LaRonde gold mine in Quebec. Production for 2003 could fall by as much as 20%.

Placer Dome finished 63 lighter at $13.98. On Tuesday, the company said it reduced hedge commitments by 1.1 million in the first quarter of 2003 by purchasing offsetting call options at a cost of US$9.4 million, or about US$10 per oz.

Eldorado Gold slipped 3 pennies to $1.91 after tabling the results of a feasibility study for its Kisladag gold project in western Turkey. The project’s internal rate of return ranges between 231-41% and the net present value between US$82-US$211 million, based on a number of variables.

The remaining gold majors suffered losses, Barrick Gold fell 76 to $22.40, while Kinross Gold declined 34 to $8.70. Northern Orion Explorations remained on investors’ view screens tacking on half a penny to make 20 with nearly 3 million shares traded.

Alcan led a bunch of falling base metal miners, losing 65 to $40.50 with more than a million shares traded after announcing that it expects first-quarter earnings to come in below or at the lower end of its previous guidance of US37-US$47 per share. The Montreal-based aluminum producer cites higher fuel, raw materials and recycled metal costs. Alcan’s first-quarter results are expected on April 16.

LionOre Mining International swam upstream to a 4 gain to make $5.24. The junior recently completed a private placement of its shares with Inco at $5.75 per share. Proceeds from the deal, which is part of a larger strategic alliance between the two, will go to repay a previous A$25 million loan from Inco.

Canada’s junior exchange gave back yesterday’s gains with investors electing to dump gold-related issues. The S&P-TSX Venture Exchange composite index slumped 7.07 points, or 0.67%, and closed at 1,051.60.

Spider Resources continued to be the most actively traded junior explorer, ending the day flat at 13 with 1.1 million shares traded. The junior and joint venture partner, over the counter-listed, KWG Resources have launched a 1,000 metre diamond drilling program on their Spider #3 base metal prospect in the James Bay Lowlands of Northern Ontario.

Northern Dynasty Minerals added 6 to close at 81 on 242,300 shares. The Hunter Dickinson led junior tabled an independent resource estimate on its Pebble gold-copper-molybdenum project in southwestern Alaska. The study, completed by Australian-based Snowden Mining Industry Consultants, nearly triples the tonnage in the higher-grade core of the deposit to 141 million tonnes grading 0.48% copper and 0.67 grams gold per tonne from the previous 1990’s estimate of 54 million tonnes grading 0.54% copper and 0.46 gram gold.

Investors continued to sell-off shares in Radius Exploration. Stock in the company fell 11 to close at 92 on 237,828. The Simon Ridgway led junior holds a large land position in Guatemala, part of which is joint ventured out to South African-based Gold Fields.