Resource Stock Roundup:Thursday, March 26th, 2009
Mar 26th, 2009 | By Doug Casey | Category: Financial NewsThe big board equities lost ground for a second straight day as higher than expected yields in a United States Treasury auction of five-year notes had investors running for the exits during Wednesday trading on the Canadian markets. For the tale of the tape, the TSX Exchange lost 0.59%, while the TSX Gold Index rallied 3.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, surged 2.86% with the advancers swamping the decliners by a 428 to 327 margin on volume of 182 million shares traded.
Western Prospector Group reported the China-based CNNC International Limited is offering up C$0.56 in cash for all the outstanding shares of Western. Of interest to CNNC are Western’s uranium assets in Mongolia. Western closed up C$0.16 at C$0.53.
Meanwhile, Ivernia is being offered C$0.15 per share in cash from London-based Griffin Mining. Ivernia ended the session up C$0.035 at C$0.155.
Greystar Resources came out with a prefeasibility study for its Angostura gold project located in northeastern Colombia. Using a base case gold price of $700 per ounce in the first three years of operation and $650 per ounce thereafter, the study envisions average annual production of 511,000 ounces of gold and 2.3 million ounces of silver over a 15-year mine life generating a net present value of $558 million and an internal rate of return of 19 per cent all at a 6 per cent discount. Greystar ended the day up C$0.34 at C$4.05.
The board room brawls are continuing with NEMI Northern Energy & Mining engaging the services of Vancouver lawyer Leon Getz, QC, to serve as independent chair for its annual and special meeting of shareholders next Monday. Michael Cooney, a concerned shareholder of NEMI with around 10.6 per cent interest, has nominated a new slate of directors for election to the board of directors. NEMI closed up C$.03 at C$0.33.
The unemployment news continues to be very weak and that suggests another re-test of the lows is possible so gains made best be made with quick trades. We will see what Thursday trading has in store.
Source: Resource Stock Roundup:Thursday, March 26th, 2009
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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.