Resource Stock Roundup: Friday, December 12th, 2008
Dec 12th, 2008 | By Doug Casey | Category: Financial NewsThe biggest proposed leveraged buyout in Canadian history has finally come to an end, with telecom giant BCE failing to met the solvency requirements. The collapsed deal, plus problems with a bailout of the auto sector in the United States, put a damper on the big board stocks during Thursday trading on the Canadian markets. For the tale of the tape, the TSX Exchange slumped 2.8%, while the TSX Gold Index gave back 3.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.12% with the advancing issuers beating out the decliners by a 424 to 416 margin on volume of 238 million shares traded.
Iamgold (NYSE:IAG) went shopping and picked up Orezone Resources (AMEX:OZN) in an all stock deal valued at C$139 million. Of interest to Iamgold is the advanced Essakane project in West Africa where full production is expected to begin in 2010. Iamgold ended the day down C$0.22 at C$5.88, while Orezone added C$0.345 to close at C$0.52.
Meanwhile, Avion Resources tagged 26.94 grams gold per tonne over 16.9 metres at its Tobakoto property in Mali. Avion ended the day up C$0.02 at C$0.07.
Shares of Rubicon Minerals (AMEX:RBY) added C$0.18 to close at C$1.18 after the company reported that a step out hole yielded 3,151.1 grams gold per tonne over 0.5 metre at its Phoenix property in Ontario.
Victoria Gold cut 16.75 grams gold per tonne over 29.6 metres on the Helen zone of its Cove project in Nevada. Shares in the company were halted from trading pending the news at C$0.20.
The junior market bucked the negative tone by posting a winning session. It looks like some investors finally stepped up to the plate to buy the undervalued exploration companies. We will see what Friday trading has in store.
Source: Resource Stock Roundup: Friday, December 12th, 2008
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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.