Trading Summary (June 11, 2002)

After opening lower on Tuesday, Canada’s gold miners climbed throughout the day pushing the Toronto Stock Exchange’s gold index 9.08 points or 4.7% higher to 204.49, and in the process recovered most of Monday’s lost ground. A late day rally pushed the price of gold US$1.30 per oz. higher to US$319.80 in New York. The mining & metals index was less fortunate slipping another 2.62 points or 1.75% to 147.4. Overall, the S&P/TSX Composite Index ended 61.88 points lower at 7,398.83 points.

Kinross Gold, fresh off Monday’s announcement of a three-way merger, rebounded to the tune of 44 or 14% to make $3.58 with nearly 41 million shares crossing the floor. The other participants in the proposed merger are TVX Gold, plus 35 or 19% to $2.19 (a new 52-week high), and Echo Bay Mines, which gained 26 or 17% to reach $1.80.

Also making news was Inco, which announced that it has reached a US$1.9 billion, 30-year deal with the government of Newfoundland and Labrador to develop its Voisey’s Bay nickel deposit. The nickel miner’s shares finished $1.46 lower at $33.10.

Most of the nation’s other base metal miners fell to a similar fate. Falconbridge slid 35 to $20, Noranda lost 18 to hit $19.60, Teck Cominco’s B series shed 15 to settle at 14.10, Aur Resources fell a quarter to $4.90, and Alcan dropped 46 to finish at $56.34.

Ivanhoe Mines enjoyed a late-day surge climbing 25 or 8% to $3.35. On Monday, Ivanhoe announced that BHP Billiton’s back-in rights for a 40% stake in the company’s Turquoise Hill project in southern Mongolia have expired.

Some nice percentage gainers included Caledonia Mining, plus 7 or 28% to 32, First Dynasty Mines, 3.5 or 21% higher at 20, Vista Gold, plus 9 or 21% to 52, and Bema Gold, which grabbed 28 or 17% to make $1.94.

A midday reversal of fortunes for gold-related issues propelled Canada’s junior exchange into the black by day-end. The S&P/TSX Venture Index gained 2.97 points, or 0.3% and closed at 1,196.52.

American Bonanza Gold Mining topped the most actively traded chart, gaining 2 to close at 19 on over 3.8 million shares. The junior holds the low-grade Copperstone gold project in Arizona.

Francisco Gold added $1.55 to close at $21.75 on over 1.9 million shares. In March, the company entered into an agreement with Toronto-listed Glamis Gold, whereby Glamis agreed to acquire all of the issued and outstanding shares of the Francisco. Glamis agreed to issue 1.55 Glamis common shares and 1 share in a new exploration company for each share in the junior.

Spider Resources added 2 to close at 9 on 1.5 million shares. The junior holds a stake in the Spider #1 diamond project in the James Bay lowlands of northern Ontario.

Seabridge Resources gained 4 to $2.85 on 542,667 shares. The junior hold numerous advanced North American gold properties with some 10 million oz. in resources.