Resource Stock Roundup: Friday, May 9th, 2008
May 9th, 2008 | By Doug Casey | Category: Gold MarketThe Canadian markets were firing on all cylinders during Thursday trading as investors appeared to be gobbling up almost any equity in sight.
For the tale of the tape, the TSX Exchange surged 1.64%, while the TSX Gold Index exploded upwards to the tune of 5.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 1.39% with advancing issuers swamping the declining issues by a 601 to 423 margin with good volume of over 207 million shares traded.
Shares in Yamana Gold continued to move higher following news that company posted a profit of $134.7 million, or $0.20 per share in the first quarter of 2008. Total production rang in at 237,495 gold equivalent ounces at cash costs, after byproduct credits of $124 per gold equivalent ounce. Yamana ended the day up C$1.11 at C$14.92.
Moving in the other direction, FNX Mining tabled earnings of $24.1 million or $0.28 per share for the first quarter, compared to a profit of $30.2 million or $0.36 per share for the same period in 2007 when the nickel price was soaring. FNX ended the day down C$2.26 at C$27.75.
Allied Nevada Gold got a boost after announcing an inferred resource of 5.2 million ounces of gold and 75 million ounces of silver at its Hycroft property in Nevada. The oxide portion holds just over 1 million of those gold ounces in 53.1 million tons grading 0.019 ounce gold per ton. Allied ended the session up C$0.26 at C$5.78.
It was a good day for Minera Andes as the company reported first quarter production of 12,140 ounces of gold and 968,000 ounces of silver from its 49% owned San Jose mine in Argentina. Minera ended the session at C$1.40 for a C$0.15 gain.
Iamgold inked a deal to sell its La Arena copper-gold project in Peru for $47.55 million and a 5.5% equity stake in Rio Alto Mining. Iamgold ended the day up C$0.42 at C$6.25.
Timminco put the short sellers on edge after announcing that its wholly owned subsidiary signed a second agreement to supply solar-grade silicon to Solar Power Industries. Timminco ended the day up C$1.15 at C$24.85.
The gold miners are finally starting to garner some investor recognition as the thought that the bullion price has peaked seems to be dissipating. We will see what Friday trading has in store.
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