Trading Summary (October 04, 2002)

The golds, up 1.92 points or more than 1% at 181.2, were alone in the black by the end of trading on Friday. Most of the TSX’s remaining subindices put in at least 1% losses. The base metal miners were right in there with a 2.28 points or more than 2% at 109.04 points. In the end, the S&P/TSX Composite Index was 91.45 points or 1.5% lower at 5,935.33, a level not seen since around four years ago.

Canada’s big three gold producers put in gains paced by a US70 gain to US$322.10 per oz. in New York. Kinross Gold was the busiest gaining 8 to $3.26 on about 4 million shares. Barrick Gold added 26 to make $24.95 and Placer Dome rose a dime to $14.33. Most of the others put in similar gains. Exceptions were: Iamgold, which slipped 13 to $5.72 and NovaGold Resources, which retreated 2 to $4.72. NovaGold recently reported continued high-grade gold intercepts from a resource-expansion drilling program on its Donlin Creek gold project in Alaska.

The base metal miners finished mostly in the red. Inco dropped 56 to $25.95, Falconbridge slid 55 to $14.20, and Noranda lost 59 to $14.26.

On Friday, Merrill Lynch downgraded its rating on shares and earnings estimates of mining companies, including Noranda, Inco and Falconbridge. Noranda’s 2002 loss estimate was increased to 20 from 15. Profit for 2003 were cut to 20 from 55 per share. Inco’s 2002 earnings forecast was slashed to about 85 from 90; 2003 estimates fell to $1.30 a share from $1.55 a share. Falconbridge’s earnings prospects were cut by a dime a share to 45. Estimates for 2003 have dropped to 80 from $1.08 a share.

Cameco was the lone index component to advance, tacking on a nickel to hit $29.

Canada’s junior exchange ended the week at yet another new 52-week low. The S&P TSX Venture Exchange composite index lost 6.83 points or 0.72%, and closed at 939.07.

Gulf International Minerals added 2 to close at 48 on 520,000 shares. The junior recently raised $700,000 of a proposed US$1.5 million financing and started small scale production of the Kansai gold project in Tajikistan.

Dynacor Mines managed to stop its recent slide, ending the day up 3 at 50 on 351,800 shares. The junior has been working the Tumipampa I and II copper-gold properties in Peru.

Desert Sun Mining gained 2 to close at 57 on 241,600 shares. The junior inked a deal to acquire a 49% stake in the Jacobina gold mine in Brazil. The junior is currently earning a 51% stake by spending U.S.$2 million. A 2,000 metre drill program is currently underway.

Brazilian Resources ended the week near a 52-week low at 3, unchanged on the day with 221,966 shares changing hands. The debt laden company, in joint venture with IMS Empreendimentos Ltda.has been trying to advance the Sabar gold project in Brazil. A feasibility study is currently underway for the Zone B area.