Trading Summary (November 27, 2001)

Less-than-inspiring consumer confidence numbers from south of the border more than offset muted investor reaction to a half-point rate cut by the Bank of Canada on Tuesday. The Toronto Stock Exchange 300 composite index slipped 3.83 points to end the day at 7,462.6. Investors scurried to the gold stocks, which led the six advancing subindices rising nearly 2.5% to 4,728.29 points. The base metal issues lagged behind gaining 25.19 points to 4,112.33.

Inco was the nation’s most active miner with more than 3 million shares crossing the floor to gain 30 to $26.10. Diversified miner Teck Cominco gained 51 to $11.60 on about 2.3 million shares. Most of the others saw similar gains. Falconbridge, off a nickel to $16.45 and Noranda, 18 lower at $15.13 were exceptions.

Sherritt International gained 4 to $3.92. On Tuesday, Sherritt named Dennis Maschmeyer as president and chief executive. Maschmeyer, Sherritt’s senior vice president of metals replaces the retiring Fred Wellhauser.

Franco-Nevada Mining was the most traded of the gold issue with nearly 1.4 million shares on the go. The company’s stock rose 19 to $22.95, as the war of words continues between Denver-based Newmont Mining and South Africa’s AngloGold continues. The two are at odds over Australia’s Normandy Mining, in which Franco owns a19.9% stake. Franco’s stake is pledged to Newmont’s bid. On Tuesday, AngloGold said the Australian Foreign Investment Review Board granted its approval for Anglo’s proposed acquisition of Normandy. Normandy’s shares on the TSE fell 58 to $12.02.

Others on the rise were: Barrick Gold, up 75 to $23.45; Placer Dome, 56 higher at $16.40; Kinross, up 3 to $1.04; and Cambior, which gained a penny to 71.

Among the smaller producers, Miramar Mining dropped a penny to 84. On Tuesday, Miramar posted a third-quarter loss of $700,000 (or 1 per share), compared with a year-ago loss of $34.7 million (66 per share). The loss during the 2000 period was primarily a result of a write-down in mineral properties of $32.7 million associated with the Company’s Northern Orion subsidiary.

Canada’s junior exchange gained momentum with the mining index leading the way. The Canadian Venture Exchange closed up 9.97 points, or 0.3% to close at 3064.62. The Mining Index jumped 87.85 points, or 1.1% to close at 7,846.07.

Vital Pacific Resources remained flat at 2 on 465,000 shares. The company proposes to change its name to First Majestic Resource and consolidate its shares on a 10-to-1 basis subject to shareholder and stock market approvals. If accepted the junior would have just over 3 million shares outstanding.

Dasher Energy closed up 2 to 22 on 405,000 shares. The company holds interests in potential diamond, oil and gas properties located in Canada, Australia and the U.S.A. It is currently exploring its oil and gas properties.

Poplar Resources ended the day down 1 to 14 on 282,000 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.

Hawkeye Gold International added 2 to its value and closed at 13 on 238,000 shares. The company holds a 33.3% interest in the YANKEE diamond property and has the right to earn up to 50% from its joint venture partner Major General Resources The YANKEE Property totals 90,000 acres and is strategically situated within the “Homerun Project”, located on Victoria Island, Nunavut, Canada.

Rock Resources traded 201,000 shares but remained steady at a penny. The company holds a 70% interest in the Coirn copper property located in northern Chile.

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 30, down 4 on 164,000 shares.