Resource Stock Roundup April 19th, 2008
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Canada’s big board continued to surge, while the junior bourse faced a modest setback during Friday trading on the Canadian markets.
For the tale of the tape, the TSX Exchange tacked on 0.86%, while the TSX Gold Index took it on the chin by dropping 3.6% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, ended the session down 0.72% with declining issues out pacing the advancers by a 584 to 471 margin on good volume of nearly 206 million shares traded.
Ecuador’s President Rafael Correa came out and stated that Ecuador will suspend large-scale mining exploration projects while a new mining law is approved to regulate the sector. The time frame is estimated at six months and the overall outcome of a new mining law is unknown. This raked the Ecuadorian explorers, most notably Aurelian Resources, which fell C$2.32 to close at C$5.04 and Corriente Resources, which halted its shares from trading pending news that it will analyze the situation. Prior to the halt Corriente dropped C$0.50 to close at C$4.10.
European Minerals is looking to gobble up Lero Gold in a move aimed at forming a well-financed gold-copper mining and production, development and exploration company with an exciting growth profile in the countries of the former Soviet Union. Under the deal, Lero shareholders get one share of European Minerals for each share held. European ended the day up C$0.11 at C$0.91, while Lero dropped C$0.09 to close at C$0.85.
With the exception of the Ecuador bombshell, it was an extremely quiet news day to end the trading week as solid commodity prices off set the bad news from Ecuador. We will see what Monday trading has in store.
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Tags: Exchange Canada, Gold Index, Lero Gold, Rafael Correa, Tsx, Tsx Venture ExchangeAbout the Author
Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.