Contrarian Stock Market Investing News - Featuring Bargain Stocks » AXU

Resource Stock Roundup:Tuesday, June 09th, 2009

Doug Casey — Tue, 09 Jun 2009 18:52:00 +0000

The Canadian markets opened on a weak note but some late-stage buying helped to trim the losses during Monday’s session. For the tale of the tape, the TSX Exchange fell 0.19%, while the TSX Gold Index managed to gain 0.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 0.54% with the decliners beating out the advancers by a 464 to 351 margin on a respectable 181 million shares traded.

Merger mania continued with Silvercorp Metals offering up 0.5 of its shares for each Klondex share. The hostile offer is valued and C$70 million and would give the base metal miner exposure to an advanced gold asset in Nevada.
Silvercorp closed down C$0.54 at C$3.82, while Klondex added C$0.58 to C$1.95.

Golden Predator Royalty & Development inked a deal to acquire up to a 70 per cent interest the past producing Brewery Creek project in the Yukon. Golden must spend C$4 million by the end of 2012 to earn a 51 per cent interest. Golden will have the option to acquire an additional 14 per cent interest in the project by spending additional C$1-million and completing a preliminary economic assessment by the end of 2013. An additional 10 per cent can be reached by Golden by completing an additional C$1 million in exploration expenditures and delivering a bankable feasibility study by the end of 2014. Project owner, Alexco Resources (AMEX:AXU) retains a one time right to buy back the additional 10 per cent interest by paying to Golden Predator 2.5 times all exploration and development expenditures incurred by Golden Predator in excess of C$4 million. Golden ended the day unchanged at C$0.44, while Alexco fell C$0.19 to close at C$2.35.

The deal flow is continuing at a torrid pace in the junior end of the equity market spectrum. When will the major step into the fray and take a run at a junior? We shall see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, June 09th, 2009

Resource Stock Roundup:Thursday, May 07th, 2009

Doug Casey — Thu, 07 May 2009 18:32:08 +0000

The bulls went on another rampage during Wednesday trading on the Canadian Markets as investors gobbled up resource stocks. For the tale of the tape, the TSX Exchange added 2.66%, while the TSX Gold Index surged 4.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 1.70% with the advancers swamping the decliners by a 500 to 391 margin on good volumes of 213 million shares traded.

Yamana Gold (NYSE:AUY) tabled first quarter earnings of $86 million or $0.12 per share on revenues of $224.3 million. Production rang in at 271,482 gold equivalent ounces with cash costs hitting $379 per ounce. Yamana ended the day up C$0.39 at C$10.33.

Kinross Gold (NYSE:KGC) earned $76.5 million or $0.11 per share in the first quarter on production of 526,888 gold equivalent ounces. Revenue rang in at $532.7 million with cost of sales coming in at $419 per ounce. Kinross closed at C$19.70 for a C$0.50 gain.

Northern Freegold Resources completed its earn-in on Atac Resources‘ Golden Revenue project in the Yukon. Atac received C$100,000 and 1 million Freegold shares as it final payment and Atac retains a 1 percent net smelter return royalty. Atac ended the day up C$0.025 at C$0.215, while Northern Freegold added C$0.01 at C$0.59.

Alexco Resource (AMEX:AXU) stated that initial underground chip-channel results from the Bellekeno resource in the Yukon returned up to 57.3 ounces of silver per ton over 6.04 metres. Alexco ended the day up C$0.05 at C$1.79.

Fewer than expected job losses in the United States during April and a robust rise in Canadian building permits in March caused euphoria on the Canadian markets. Clearly this logic is somewhat flawed given the overall weak numbers but who am I to argue with a stellar bull run. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, May 07th, 2009