Resource Stock Roundup: Friday, October 24th, 2008
Oct 24th, 2008 | By Doug Casey | Category: Financial NewsThe junior bourse broke through the 2002 lows but the big board managed a late day rally to finish in the black during Thursday trading on the Canadian markets.
For the tale of the tape, the TSX Exchange added 1.03%, while the TSX Gold Index fell 4.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 4.73% with the declining issuers out pacing the advancers by a 650 to 266 margin on volume of 190 million shares traded.
Teck Cominco (NYSE:TCK) tabled earnings of C$432 million, or C$0.97 per share in the third quarter of 2008, compared with C$495 million, or C$1.16 per share tallied in the same period a year earlier. The bottom line was hit by lower copper and zinc prices with higher coal operating profits limiting the impact. Teck ended the day down C$1.78 at C$12.54.
Potash Corp. of Saskatchewan (NYSE:POT) saw its third quarter earnings increase five fold to C$1.24 billion, or C$3.93 per share. To put things in perspective, that exceeded the C$1.1-billion earned in the entire 2007. Potash ended the day up C$3.07 at C$85.99.
Shares of one time high-flyer Noront Resources (CVE:NOT) continued to free fall, dropping C$0.28 to close at C$0.66. The company is in the midst of a proxy fight and just tabled a positive scoping study for development of its Eagle One copper-nickel-platinum deposit in Ontario.
Augusta Resource (AMEX:AZC) tabled a new resource calculation and better metallurgy results from its Rosemont copper project in Southern Arizona. The recovery for molybdenum came in at 70-75%, silver recovery was 80-82% and copper recoveries tallied 84-86%. Augusta closed down C$0.06 at C$1.45.
New Gold produced 68,801 ounces of gold at total cash costs of $566 per ounce in the third quarter. Silver output hit 282,055 ounces and copper production was 2.37 million pounds. New Gold ended the day down C$0.45 at C$1.28.
Things could get awfully dicey for the junior exploration stocks with tax loss season drawing ever closer in a weak liquidity environment. Keep your hard hats on and we will see what Friday trading has in store.
Source: Resource Stock Roundup: Friday, October 24th, 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.