Resource Stock Roundup: Wednesday, July 30th, 2008
Jul 30th, 2008 | By Doug Casey | Category: Gold MarketIt was more of the same during Tuesday trading on the Canadian Markets as the junior bourse continued to fall, while the big board remains more resilient.
For the tail of the tape; the TSX Exchange gained 0.32%, while the TSX Gold Index (TSE:XGD) lost 3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.84% with the declining issuers beating out the advancers by a 525 to 339 margin on pathetic volume of 105 million shares traded.
In the it’s about time camp, Teck Cominco (NYSE:TCK) finally stepped to the plate and agreed to buy out the remaining stake it does not already own in Fording Canadian Coal Trust in a total cash and stock deal worth C$14.1 billion. Under the proposal, Fording unitholders get C$82 in cash and 0.245 of a Teck Class B subordinate voting share for each Fording unit. Teck will finance the cash portion of its bid primarily with C$9.8 billion in loans arranged with a syndicate of banks, as well as with proceeds of a sale of Fording units that Teck holds. Teck ended the day up C$2.44 at C$42.85, while Fording added C$6.55 to close at C$90.35.
It was a good day for Exeter Resources (CVE:XRC) as the company reported the highest-grade intersection to date from its Cerro Moro gold-silver project in Argentina. The hot hole yielded a mind numbing 471.9 grams gold per tonne over 3.6 metres. Exeter ended the session up C$0.27 at C$3.49.
Hathor Exploration (CVE:HAT) hit basement-hosted uranium mineralization in the second and third diamond drill holes completed during the summer 2008 drill program on the Roughrider zone on its 90% owned Midwest NorthEast project. Assay results still pending. Hathor ended the day up C$0.05 at C$2.96, while 10% owner Terra Ventures (CVE:TAS) added C$0.06 at C$0.70.
Northern Freegold Resources (CVE:NFR) tagged 46.96 metres averaging 9.6 grams gold per tonne at its Freegold Mountain project in the Yukon. No one cared as Freegold ended the day unchanged at C$0.60.
With no rest for the sellers with the underlying commodity prices weakening, one has to wonder what it will take to get some serious buying back into resource stocks We will see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, July 30th, 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.