Resource Stock Roundup:Tuesday, May 12th, 2009
May 12th, 2009 | By Doug Casey | Category: Gold MarketAfter a late week rally profit taking once again ruled the roost during Monday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange gave back 1.26%, while the TSX Gold Index lost 0.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.62% with the decliners swamping the advancers by a 477 to 369 margin on 157 million shares traded.
Silver Wheaton (NYSE:SLW) saw its first quarter profits fall to $15.1 million or $0.06 per share down from the $27.9 million or $0.11 per share tallied in the same period a year earlier. The company sold 3.2 million ounces of silver during the three-month period; up from the 2.8 million ounces sold in the same period of 2008 but silver sale revenues fell to $37.6 million from $48.9 million thanks to lower silver prices. Silver Wheaton ended the day down C$0.12 at C$10.14.
Uranium One reported a first quarter profit of $61.1 million or $0.13 per share, compared to a loss of $114.9 million, or $0.25 per share in the same period of 2008. Revenues came in at $43 million, compared with $22.5 million in the year earlier period. Production increased to 700,900 pounds. Uranium One closed at C$3.86 for a C$0.17 gain.
HudBay Minerals, with the consent of Lundin Mining, entered into an agreement to sell its entire 16.7 per cent stake in Lundin to GMP Securities for cash proceeds of approximately C$236 million, marking a gain before tax of $100 million. HudBay closed up C$0.02 at C$8.09.
Kinbauri Gold has flat out rejected a C$0.55 per share all cash offer from Orvana Minerals. The management team says that the previously announced transaction with Glen Eagle is moving towards completion. Under that proposal, Glen Eagle will invest C$32 million for a 45% interest in Kinbauri’s El Valle/Carles project in Spain. Kinbauri ended the day up C$0.205 at C$0.60, while Orvana lost C$0.02 at C$0.71.
A trend of two days up followed by some profit taking is rapidly developing. Will it continue? We shall see what Tuesday trading has in store.
Source: Resource Stock Roundup:Tuesday, May 12th, 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.