Resource Stock Roundup: Wednesday, May 14th, 2008
May 14th, 2008 | By Doug Casey | Category: Gold MarketThe Canadian Markets took a bit of a breather during Tuesday trading as investors locked in profits after the big board hit record highs on Monday.
For the tale of the tape, the TSX Exchange gave back 0.34%, while the TSX Gold Index lost another 0.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.78% with the declining issuers swamping the advancers by a 605 to 424 margin on surging volume of 267 million shares traded.
Iamgold tabled a profit of $34.4 million, or $0.12 per share, for the first quarter of 2008. This was triple the $11.3 million or $0.04 cents a share tabled in the same period of 2007 as higher gold prices offset rising costs. Investors however, remain skeptical as shares of Iamgold ended the day up only C$0.05 at C$6.10.
Not to be outdone, Cameco reported first-quarter earnings of $133 million, up by 125% from a year ago as revenue increased to $593 million on higher prices for uranium and gold and an increase in uranium volumes. The World’s largest uranium miner tabled earnings of $0.37 per share compared with $59 million or $0.17 per share in the year-earlier period. Cameco ended the day up C$0.06 at C$40.34.
Midlands Minerals failed to attract interest after reporting that its fully-permitted, past-producing Sian project in Ghana hosts an indicated resource of 2.56 million tonnes grading 2.33 grams gold per tonne, plus an inferred resource of 2.69 million tonnes grading 2.35 grams gold per tonne. Midlands ended the day unchanged at C$0.24.
Coal continued to attract interest as evidenced by West Hawk Development, which inked a letter of intent to acquire and develop a coal mine and coalbed methane gas operation in Oklahoma and Arkansas. West Hawk ended the day up C$0.08 at C$0.33.
A stock to keep an eye on is Gabriel Resources as the company continues to try to get the huge Rosia Montana project in Romania back on track. Gabriel ended the day up C$0.37 at C$2.70 on nearly 11 million shares traded.
The United States dollar is showing signs of renewed strength but commodities are continuing to hold up well. We will see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, May 14th, 2008
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