Resource Stock Roundup Friday August 1, 2008
Aug 1st, 2008 | By Doug Casey | Category: Financial News, Gold MarketIn a reversal of recent fortunes, the more speculative stocks actually showed signs of life and out performed their bigger brothers during Thursday trading on the Canadian Markets. For the tail of the tape; the TSX Exchange lost 0.66%, while the TSX Gold Index fell 0.6% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 1.82% with the advancing issuers beating out the decliners by a 536 to 406 margin on pathetic volume of 146 million shares traded.
In a surprise move, Goldcorp (G) stepped up to the plate and agreed to buy Gold Eagle Mines (GEA) in a deal valued at C$1.5 billion. The major will pay C$6.80 in cash and 0.146 Goldcorp share for each Gold Eagle share. The acquisition of Gold Eagle gives Goldcorp control of the Bruce Channel ore body, which lies next to the Red Lake mine, its largest operation. Agnico-Eagle Mines recently bought a 5.2% interest in Gold Eagle, while Goldcorp already owned a 4.7% stake. Goldcorp also came out with a second quarter loss of $9.2 million, or $0.01 per share, compared with a profit of $2.9 million in the year earlier period. Rising costs and foreign exchange expenses were attributed for the short fall. Goldcorp ended the session down C$1.70 at C$38.15, while Gold Eagle added C$1.71 to close at C$12.28.
Speaking of buying, High River Gold Mines (HRG) went out and bought the remaining 50% interest it did not own in the Prognoz silver project in Russia. The price tag is 34.1 million shares, marking 9.9% of the company and assuming debt obligation totaling $16 million. High River ended the day up C$0.13 at C$1.62.
On the permitting front, Tamerlane Ventures (TAM) has been issued a Type A Land Use Permit green lighting construction at its Pine Point lead-zinc project in the Northwest Territories. Tamerlane ended the day up C$0.16 at C$0.57.
Not to be out done, Canadian Zinc (CZN) entered into a memorandum of understanding with the Parks Canada Agency in regards to the expansion of the Nahanni National Park Reserve and the development of the Prairie Creek base metal mine in the Northwest Territories. Canadian ended the day up C$0.18 at C$0.65.
Could the junior board finally be ready to move higher or is the recent up tick a head fake to entice unwilling buyers? We will see what Friday trading has in store.
Source: Resource Stock Roundup Friday August 1, 2008
Advertisement
Presenting the new World EnergySM Index CD, only from EverBank®. Our newest multi-currency Index CD is backed by the currencies of four nations—all rich in major, energy-dependent natural resources like oil or coal. And with increased demand for their resources, their currencies could benefit.
The currencies include: Canadian dollar, Australian dollar, and Norwegian krone. Terms of 3 and 6 months are available— both terms with competitive yields.
Like our new CD, you too are resourceful. Click here to apply. When applying select WorldCurrency CD and you'll be on your way.
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.