Resource Stock Roundup: Monday, April 20th, 2009
Apr 20th, 2009 | By Doug Casey | Category: Financial NewsThe bulls once again showed their strength during Friday trading on the Canadian markets, with investors laying down bets that the worst of the economic storm has now passed. For the tale of the tape, the TSX Exchange added 1.01%, while the TSX Gold Index lost another 3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.72%, with the advancers edging out the decliners by a 390 to 352 margin on volume of 133 million shares traded.
Despite the rebound in the overall equity markets, Vale Inco is shutting down all of its nickel operations in Ontario’s Sudbury Basin for two months this summer. In response to this news, FNX Mining is considering several possible production alternatives for its Sudbury mining operations, including stockpiling its ore for processing when Vale Inco resumes operations; temporarily suspending some or all production; and exploring the possibility of sending ore to other processing facilities. FNX ended the day down C$0.25 at C$6.10.
Glen Eagle Resources has stepped up to the plate by investing C$32 million in return for a 45 per cent stake in Kinbauri Gold’s El Valle-Carles gold-copper project in northwestern Spain. Glen Eagle also has the right to buy another 5 per cent by investing another $5 million. Glen Eagle closed down C$0.035 at C$0.145, while Kinbauri added C$0.02 to C$0.47.
The markets now appear to be poised to move higher even in the face of rather dire economic numbers. We shall see what Monday trading has in store.
Source: Resource Stock Roundup: Monday, April 20th, 2009
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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.