Resource Stock Roundup: Friday, June 20th, 2008
Jun 20th, 2008 | By Doug Casey | Category: Gold MarketProfit taking was the name of the game during Thursday trading on the Canadian Markets.
For the tale of the tape, the TSX Exchange fell 1.88%, while the TSX Gold Index gave back 0.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 0.58% with the declining issuers once again outpacing the advancers, this time by a 644 to 430 margin on big volume of nearly 262 million shares traded.
Kadywood Capital increased its C$200 million financing to C$260 million. The private placement will fund the purchase of 50% of the contained gold, platinum and palladium metal in ore mined and shipped from multiple FNX Mining operations in Ontario. Kadywood intends to change its name to Gold Wheaton. Kadywood ended the day down C$0.09 at C$1.10, while FNX added C$0.43 to close at C$25.70.
Largo Resources continued to benefit from its exploration exposure to vanadium as well as news that it has launched a scoping study over the Northern Dancer tungsten-molybdenum project in the Yukon. Largo can earn a 70% stake by issuing 4 million shares and spending C$5 million on exploration. Largo can then purchase the remaining interest from Strategic Metals for C$5 million in cash or stock at Strategic’s election. Largo ended the day up C$0.19 at C$1.40, while Strategic gained C$0.01 at C$0.52.
Pediment Exploration got a modest boost after reporting a 13.7 metre drill intercept running 16.3 grams gold per tonne at its Los Planes deposit in Mexico. Pediment closed out the day at C$1.54, up C$0.03.
Inflationary pressure continues to be a concern to the equity markets with rising interest rates typically bad for stocks. We will see what Friday trading has in store.
Source: Resource Stock Roundup: Friday, June 20th, 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.