Gold miners drag index as bullion tumbles; other miners flourish

Gold producers push Canadian markets into red

By Laura Mandaro, MarketWatch

Last Update: 5:45 PM ET Apr 8, 2008

SAN FRANCISCO (MarketWatch) — Canada’s benchmark index closed slightly lower
Tuesday, dented by a drop in gold producers’ shares that was partially offset by
a rally in other miners.

S&P/TSX composite index (CA:SPTSX) closed 17.5 points lower, or 0.1%, to
13,727.5. The gold sub-component led losses, closing 1.6% lower, followed by a
1.1% drop in the real estate sector. Diversified metals and mining companies led
sector gains, rising about 1.2%.

Gold producers’ shares got trounced by a sell-off in bullion. Yamana Gold
(CA:YRI) shares closed 2.6% lower at C$14.36, the second most active issue on the
Toronto Stock Exchange. Goldcorp Inc. (CA:G)(GG) shares lost 2.3% at C$40.03.

In New York, gold for June delivery closed $8.80 lower to end at $918 an ounce
after the International Monetary Fund said it would sell more than 14.2 million
ounces of its gold reserves.

Among advancers, copper and zinc producer Teck Cominco (CA:TCK.B)(TCK) rallied
3.8% to C$48.25, bucking a slide in copper prices. Investment banks CIBC World
Markets and Haywood Securities raised their price targets on the company’s
shares, according to Dow Jones Newswires.

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