Resource Stock Roundup: Wednesday, January 21st, 2009
Posted on: Jan 21st, 2009 | By Doug Casey | Filed under Financial News
A 50 basis point drop in interest rates by the Bank of Canada to 1 per cent did not buoy confidence in the equity markets during Tuesday trading as investors bailed out in a big way. For the tale of the tape, the TSX Exchange plunged 3.81%, while the TSX Gold Index popped another 3.35% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.86% with the declining issuers swamping the advancers by a 423 to 263 margin on 107 million shares traded.
Shares of Century Mining dropped C$0.045 to close at C$0.035 after the company reported that Fortis Bank is walking away from financing its Lamaque underground gold mine in Quebec. Century now has the project up for sale.
Golden Band Resources says that its La Ronge gold project in Saskatchewan could produce 141,400 ounces of gold over fours years, generating an internal rate of return of 24.9% with capital costs ringing in at C$32.1 million. Golden Band ended the day unchanged at C$0.175.
Kirkland Lake Gold tagged 2.21 ounce gold per ton over 12.4 feet during exploration drilling on its the South Mine Complex near Kirkland Lake, Ontario. The company ended the day up C$0.43 at C$4.49.
On the uranium front, Hathor Exploration is about to resume drilling on its 90 per cent owned Midwest NorthEast property in Saskatchewan. A total of four rigs have been mobilized to the high-grade discovery. Hathor ended the day down C$0.20 at C$3.24.
Weakness in the financial sector continues to impact the overall markets, with liquidity and risk aversion being central themes. We will se what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, January 21st, 2009
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.