Resource Stock Roundup Thursday, September 4th, 2008
Sep 4th, 2008 | By Doug Casey | Category: Financial News, Gold MarketThe September selling binge accelerated during Wednesday trading on the Canadian markets as the Bank of Canada left interest rates unchanged and investors continued to unwind their resource trade positions.
For the tale of the tape, the TSX Exchange lost 1.22%, while the TSX Gold Index plunged 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 2.84% with the declining issuers swamping the advancers by a 612 to 254 margin on volume of 119 million shares traded.
Gammon Gold (GRS) cut 12.25 grams gold over 1.2 metres at its Guadalupe y Calvo property in Mexico’s Chihuahua state. Shares of Gammon however followed the bullion price by ending the day down C$0.60 at C$9.05.
Financially troubled Geoinformatics Exploration (GXL) added C$0.005 to close at C$0.40 after reporting that the first hole of its 2008 drill program on the Whistler zone in Alaska cut 726.8 metres running 0.48 gram gold per tonne.
NovaGold (NG)and its long time shareholders must be shaking their heads about rebuffing the $16 per share takeover bid from Barrick Gold (ABX) in late 2006. Well, Barrick may get another chance only this time at a cheaper price because NovaGold announced that it was considering selling all or part of itself to unlock shareholder value. NovaGold, which closed down C$0.33 at C$6.20, holds a 50% stake in the Donlin Creek gold project in Alaska and a 50% interest in the Galore Creek copper-gold property in British Columbia.
The junior bourse has once again taken out its yearly low and is now trading some 45% off its high hit in May 2007. The next key down stop is at 1650, which is still a long way off the 890 point bottom encountered in 2002. We will see what Thursday trading has in store.
Source: Resource Stock Roundup Thursday, September 4th, 2008
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.