Trading Summary (October 27, 2003)

Toronto stocks jumped quickly on Monday morning and stayed aloft for the whole day, in active trading that saw the TSX Composite index rise 49.79 points to close at 7,664.19. The leading sectors — all up by 1 to 2% — were information technology, industrials, and the base-metal mines, suggesting investors were betting on general economic recovery.

The TSX Metals and Mining index jumped 2.06 points, or 1.2%, closing at 177 points, led by Teck Cominco, which rose 60 to $16 on a volume of nearly 470,000 shares. The zinc producer had reported third-quarter earnings of $19 million on revenues of $590 million, and is showing net earnings of $42 million for the first nine months of 2003.

The volume leader was Noranda, with 3.6 million shares moving; it rose 12 to $15.20. On Thursday the company announced earnings of $12 million on revenues of $1.2 billion in the third quarter.

The golds also advanced, but more modestly than the broader market. The TSX Gold index rose 0.4 points to 207.04, a gain of 0.2%.

Trading in Bema Gold and Wheaton River Minerals continues to be heavy. Bema fell a nickel to $4.37 on a volume of 3.1 million shares, while Wheaton was 3 better at $2.79 with 3.2 million shares changing hands.

Golden Star Resources was the biggest loser on the day, falling back 20 to $7, a loss of 2.8%, on a volume of just over a million shares. Among the index heavyweights, Barrick Gold was down 17 at $25.43.

Off the index, heavy trading continued in Queenstake Resources, which saw 4.3 million shares move on Monday. Queenstake was off 2 at 65, and has gained about 60% since August.

Manhattan Minerals was off 15 at $1.20 following news that a general strike was planned in the town of Tambogrande, Peru, as a protest against Manhattan’s plans to develop its Tambogrande polymetallic deposit near the town.

Canada’s junior exchange started the trading week off in fine form with advancing stocks outpacing declining issues by a 434-to-383 margin. The S&P-TSX Venture Exchange composite index surged 21.01 points, or 1.42% and closed at 1,501.54.

Cabo Mining topped the most actively traded chart for the second straight session. Shares in the junior lost a penny to close at 4.5 on 2.35 million shares traded. The company holds the Cobalt Area diamond project in northern Ontario.

American Bonanza Gold Mines added 2.5 to close at 42 on 1.8 million shares traded. The junior is currently drilling the Copperstone gold property in Arizona.

Hathor Exploration lost 3 to close at 52 on 1.26 million shares traded. The company recently picked up some ground, subject to a 2% net smelter return in the Eskay Creek area of northwestern British Columbia. The price tag was $196,000 and 1 million shares.

Pacific Minerals gave back 10 of Friday’s 80 move to close at $2.45 on nearly 750,000 shares traded. A newly restructured deal will allow the junior to retain at least 50% of its flagship Chinese projects. Toronto-listed Ivanhoe Mines has elected to reduce its maximum earn in rights for the 217 and Dangong gold projects, as well as the JBS platinum-palladium project to 50% from the previous 80%. The company has also agreed to transfer to Pacific Minerals a 50% of its interest in the Shuteen exploration licence in southern Mongolia. The 93-sq. km property lies 100 km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by spending US$1.5 million the end of 2004. So far, Ivanhoe has spent US$1.4 million on the project. In return, Pacific Minerals will issue Ivanhoe 2.5 million shares.