Resource Stock Roundup:Tuesday, January 27th, 2009
Jan 27th, 2009 | By Doug Casey | Category: Financial NewsNews on the job loss front continued to mount but existing home sales in the United States rose unexpectedly in December and that sparked a mini-rally during Monday trading on the Canadian markets. For the tale of the tape, the TSX Exchange tacked on 0.33%, while the TSX Gold Index gave back 3.2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.87% with the advancing issuers edging out the decliners by a 399 to 304 margin on 147 million shares traded.
Over in New York, Freeport-McMoRan (NYSE:FCX) posted its biggest quarterly loss in company history, losing nearly $14 billion during the fourth quarter. The company reported a loss of $13.9 billion, or $36.78 per share, compared with a net income of $414 million, or $1.05 per share in the prior-year period. The results, however, include special charges of about $14 billion, or $36.84 per share, largely due to commodity price declines and the acquisition of Phelps Dodge. The major is also going to the market looking to raise up to $750 million. Freeport ended the session up C$2.10 at C$24.91.
Mergers amongst the explorers continued, with Detour Gold and PDX Resources looking to join forces. PDX is Detour Gold’s largest shareholder with already a 42 per cent stake. Under the proposal, each PDX share will be exchanged for 0.2571 of a Detour Gold share marking a value of C$2.12 per PDX share. Detour ended the session up C$0.42 at C$8.68, while PDX added C$0.50 to close at C$2.15.
Osisko Mining tabled an inferred resource estimate of 1.81 million ounces of gold grading 2.12 grams gold per tonne on the western portion of the South Barnat deposit on its Canadian Malartic property in Quebec. Osisko closed down C$0.04 at C$4.56.
Uranium North added C$0.025 to close at C$0.115 after announcing that its Amer Lake Main zone deposit in Nunavut hosts 6.2 tonne grading 0.084% U308 representing 11.5 million pounds of yellow cake.
The annual Round-Up Mining & Exploration Convention is now underway in Vancouver and that may have sparked a little of the interest in the junior explorers. All the talk is centered on gold with speakers generally preaching to the converted. We will see what Tuesday trading has in store.
Source: Resource Stock Roundup:Tuesday, January 27th, 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.