Trading Summary (November 26, 2001)

After dipping into negative territory before midday, the Toronto Stock Exchange regained its footing to end the day up 33.97 points at 7,466.4. Leading the five declining subindices was the Gold & Precious Metals subindex, which slid 1.1%. Heading the other way was the Consumer Products subindex, which gained 2.5%. Trading volume was moderate ahead of an expected 50-basis-point rate cut by the Bank of Canada on Tuesday.

Sherritt International suffered a mass sell-off to become the most active mining issue with more than 3.2 million shares on the move. The issue fell 62 or about 14% to $3.88. Late on Friday, Sherritt announced that it would discontinue its quarterly dividend, which was reduced to 5 from 10 in the third-quarter, blaming slumping natural resource prices and an uncertain outlook.

Swedish-Canadian miner Boliden was close behind falling 4.5 or about 14% to 28.5 with more than 3 million shares traded. According to Reuters, Industry consultants AME Mineral Economics said on Monday, that slumping zinc demand would produce a surplus of 200,000 tonnes by the end of 2001; consumption is not expected to improve for another two years. Last week, Boliden received approval to restructure its ordinary shares on the Stockholm Stock Exchange. A similar application has been made with the TSE.

The remaining base metal miners performed a bit better. Inco gained 50 to $25.80; Falconbridge rose 75 to $16.50; Noranda climbed 54 to $15.31; and Teck Cominco ended 21 higher at $11.09.

On Monday, The Paranapanema group, Brazil’s largest non-ferrous metals group, announced that it had agreed to sell zinc producer Paraibuna de Metais, Brazil’s second largest zinc producer, to Teck-Cominco. Energy rationing in Brazil halved Paraibuna’s output to 47,000 tonnes per year in July. Instead, the company sold the power it generates to take advantage of soaring energy prices.

Kinross Gold was the busiest among the golds falling 3 to $1.01 on 2.5 million shares. Barrick Gold was unchanged at $22.70; Placer Dome fell 40 to $15.84; TVX Gold gained a penny to $66; and Franco-Nevada Mining lost 34 to $22.76.

On Monday, Anglogold announced that it would pursue action at the Australian Takeovers Panel regarding Newmont’s proposed three-way deal with Normandy and Franco-Nevada. Anglo contends that parts of Newmont’s offer "contravened fundamental aspects’" of Australian takeover law and policy. Normandy shares were unchanged at $12.60 on the TSE.

Canada’s junior exchange started the trading week off on a sour note with all indices ended the day solidly in the red. The Canadian Venture Exchange ended the day down 41.36 points, or 1.3% to close at 3054.65. The Mining Index followed suit sinking 96.56 43.36 points, or 1.2% to close at 7,758.22.

The latest batch of drill results from the Gold Mountain zone near Nelson, BC sent shares of Sultan Minerals lower. Despite cutting another high-grade intercept grading 240 grams gold over 1.2 metres, most of the holes returned low grades. The junior ended the day at 34, down 8 on 376,000 shares.

Frank Callaghan-led International Wayside Gold mines tacked on 1 to close at 13 on 177,000 shares. The junior continues to drill around its Bonanza Ledge gold discovery near Wells, BC.

Eurasia Gold added 1 to close at 2 on 272,500 shares. The company operates two small gold mines in Kazakhstan, Central Mukur and Myaly.

Poplar Resources ended the day flat at 15 on 224,000 shares. A test section of drill core from the Bottenbacken polymetallic project in Sweden returned 0.96% copper, 1.42 grams palladium and 0.86 gram gold per tonne.

Shares of Andean American Mining continued to lose ground falling 3 to 43 on a volume of 94,250. By early next year the company envisions a 3,250 tonnes per day gold operation at its Santa Rosa property in Peru.