Resource Stock Roundup Wednesday, October 29, 2008
Posted on: Oct 29th, 2008 | By Doug Casey | Filed under Financial News
The Canadian markets rebounded strongly from its second biggest one day percentage drop in history as investors went bargain hunting for select issues during Tuesday trading. For the tale of the tape, the TSX Exchange rallied 7.2%, while the TSX Gold Index surged 14% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.98% with the declining issuers out pacing the advancers by a 442 to 394 margin on big volume of 259 million shares traded.
Andean Resources came out with a prefeasibility study for its Cerro Negro high-grade gold and silver project in Argentina. The study envisions production of 350,000 ounces of gold per year with cash costs ringing in at $198 per ounce generating an internal rate of return of 40%. The probable reserves stand at 7.2 million tonnes running 6.4 grams gold and 75 grams silver per tonne. Andean ended the day down C$0.02 at C$0.48.
On the merger front, Richmont Mines is offering up C$0.15 in cash and 0.055 of a Richmond share for each Patricia Mining share. The deal is valued at a modest C$17 million. Richmont ended the session down C$0.04 at C$1.81, while Patricia closed at C$0.20 for a C$0.085 gain.
Low metal prices have prompted Breakwater Resources to suspend operations at both the Langlois mine in Quebec and the Myra Falls mine in British Columbia. Breakwater ended the session unchanged at C$0.95.
Shareholders elected to take profit in Cardero Resource a day after the company inked a deal to sell its Pampa de Pongo iron property in Peru. Cardero ended the day down C$0.15 at C$1.71.
News that the CH-2 and CH-3 kimberlites on Baffin island in Nunavut contain diamonds propelled Peregrine Diamonds C$0.05 higher to close at C$0.275.
The junior market is down more than 75% from its May 2007 top and this type of loss formed the bottom for the 1987 and 1996 market meltdowns. We will see what Wednesday trading has in store.
Source: Resource Stock Roundup Wednesday, October 29, 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.