Trading Summary (May 11, 2001)

The Toronto Stock Exchange fell 97.78 points to close at 8,023.7 points on Friday. Investors sent the TSE down in light of better-than-expected retail sales data from the U.S. Many feel that the new numbers may prevent the U.S. Federal Reserve from making further aggressive cuts in interest rates. In all, just three of the TSE’s 14 subindexes managed to finish in the black — and just barely at that. The gold and base metal issues were not among that number.

The gold and precious minerals subgroup shed 33.99 points to end at 4,873.88. The metals and minerals subindex fell 40.32 points and ended at 4,735.45.

Metallica resources showed up on the TSE’s most active list with more than 2 million shares on the go. The issue fell 15, or nearly 19%, despite continued impressive results from the El Morro copper-gold project in north-central Chile, where Noranda has been drilling as part of an earn-in agreement. Noranda was unchanged at $16.25.

Goldcorp stood out among the country’s gold miners with a 40, or 3%, rise to $13.50 on about 1.1 million shares. The company posted first-quarter earnings of US$14.7 million, or 18 per share. Its Red Lake mine in northwestern Ontario (in its first full quarter of production) is strongly exceeding expectations.

Among the few other advancing gold issue were Placer Dome, up 2 to $17, and Cambior, up 3 to 59.

Boliden continued its recent climb, adding another 13, or 21%, to hit 75. The financially beleaguered company reported a net loss of US$25.1 million, or 11 per share, for the first quarter of 2001, up from a net loss of US$18.1 million, or 18 per share, a year earlier. The company is in the midst of out a capital management program focused on cutting costs, boosting productivity, postponing discretionary spending and selling assets.

Of the few others base metal miners on the rise were Falconbridge, up 35 to $17.95, Aur Resources, up 22 to $2.85, and Breakwater Resources, 4 higher at $1.36.

Canada’s junior exchange ended the week in fine form as all indexes closed out the session in the black. The Canadian Ventures Exchange gained 11.71 points, or 0.4%, to finish the week at 3,176.72. The Mining Index followed suit, climbing 16.55 points, or 0.3%, to close at 6,618.52.

Starfield Resources ended the day up 3 to 65 on 270,500 shares. The first drill hole of this year’s program expanded the West zone on the Ferguson Lake copper-nickel sulphide property in Nunavut.

Shares in New Blue Ribbon Resources bounced back after two days of profit-taking. The Edmonton-based junior’s stock had doubled on news that joint-venture partner BHP has hit significant sulphides on the first two holes drilled into the Moose diamond property in Manitoba. New Blue Ribbon ended the day up 3 to 29 on 708,500 shares.

Poplar Resources tacked on 2 to 15 on 249,000 shares. The company recently announced that, of the six targets tested during the latest round of drilling on the Sundsvall diamond project in central Sweden, only one warrants petrographic analysis.

Inca Pacific ended the day up 5 at 40 on 55,000 shares. The junior recently announced that Anaconda Peru has launched a US$3-million exploration program over its Magistral copper-molybdenum property in Peru.