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Resource Stock Roundup: Wednesday, April 1st, 2009

Doug Casey — Wed, 01 Apr 2009 21:23:32 +0000

After a couple of sessions of selling, the Canadian Markets rebounded across the board during Tuesday trading. For the tale of the tape, the TSX Exchange added 1.44%, while the TSX Gold Index tacked on 1.2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 1.23% with the advancers beating out the decliners by a 426 to 343 margin on volume of 146 million shares traded.

Paramount Energy Trust went shopping and agreed to buy Profound Energy in a friendly cash-and-stock deal valued at $112.9 million. Paramount ended the day down C$0.10 at C$3.09, while Profound added C$0.54 to close at C$1.19.

Meanwhile, Capital Gold has left Gammon Gold (NYSE:GRS) standing at the altar. The board of directors of Capital Gold have decided not to sign a definitive merger agreement and are walking away. Capital ended the day down C$0.05 at C$0.70, while Gammon added C$0.20 at C$8.16.

Forsys Metals is continuing to try to get its C$7 per share takeover offer from George Forrest International Afrique SPRL completed, but so far no definitive deal on the agreement has been reached. Forsys ended the day down C$0.84 at C$4 even.

Capstone Mining tabled 2008 earnings of $131.8 million or $1.46 per share on sales of 42 million pounds of copper, 2 million pounds of zinc, 24,344 ounces of gold and 132,465 ounces of silver. Capstone ended the day up C$0.03 at C$1.67.

Shareholders of NEMI Northern Energy & Mining voted 2 to 1 to elect concerned shareholder Michael Cooney and his slate of nominees as NEMI’s new board of directors at the company’s annual and special general meeting. NEMI ended the day up C$0.04 at C$0.36.

The schizophrenic nature of the market is continuing and for those quick and nimble some profits are probably being made. Those with a buy and hold strategy are treading water at best. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, April 1st, 2009

Resource Stock Roundup: Monday, March 16th, 2009

Doug Casey — Mon, 16 Mar 2009 19:21:41 +0000

It was yet another quiet news day during Friday’s trading session on the Canadian Markets, with some investors electing to lock in the gains made over the past week. For the tale of the tape, the TSX Exchange gained 0.26%, while the TSX Gold Index tacked on 0.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.66% with the advancers beating out the decliners by a 354 to 331 margin on pathetic volume of 91 million shares traded.

Gammon Gold (NYSE:GRS) and Capital Gold are looking to team up with Capital Gold in an all share transaction that would see Capital Gold shareholders get 0.1028 Gammon Gold share for each Capital Gold share. Capital Gold also came out with second quarter earnings of $3.19 million or C$0.02 per share. Gammon ended the day down C$0.46 at C$9.13, while Capital Gold added C$0.06 at C$0.87.

Fronteer Development Group (AMEX:FRG) and 49 per cent holder AuEx Ventures tabled an indicated resource of 4.81 million tonnes grading 2.35 grams gold per tonne and an inferred resource of 8.78 million tonnes at an average grade of 1.63 grams gold per tonne for the Long Canyon deposit in northeastern Nevada. That tallies 822,000 contained ounces of gold. Fronteer ended the day up C$0.05 at C$2.91, while AuEx added C$0.07 to close at C$2.52.

The take over of Forsys Metals has hit a bump as the company extended the closing date for its proposed takeover offer from George Forrest International Afrique SPRL. The new date has not been determined, but no later than July 31. The purchase price remains at C$7 per share but the break fee jumps to $20 million. Forsys ended the day down C$1.55 to C$3.70.

The broader markets look very stable right now and appear to want to inch themselves higher. That said, we have been here before over the past 18 months and the end results proved to be lower-lows. We will see what Monday trading has in store.

Source: Resource Stock Roundup: Monday, March 16th, 2009

Resource Stock Roundup: Tuesday, November 18th, 2008

Doug Casey — Tue, 18 Nov 2008 20:06:53 +0000

Across the board selling continued during Monday trading on the Canadian markets, with investors betting that the economic outlook will get worse before it gets better. For the tale of the tape, the TSX Exchange fell 2.88%, while the TSX Gold Index plunged 3.6% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 1.97% with the declining issuers outpacing the advancers by a 489 to 264 margin on volume of 121 million shares traded.

Management of Forsys Metals approved the C$7 per share takeover offer tabled by George Forrest International Afrique SPRL. The advanced uranium player added C$1.36 to close at C$6 even.

Shares of Northern Abitibi Mining lost C$0.015 to close at C$0.075 after the company reported a 3.7 metre intercept running 50.05 grams gold per tonne at the Viking property in Newfoundland. Northern is earning a majority interest in the project from Altius Resources, which closed unchanged at C$4.70.

Sprott Resource tabled earnings of C$67.15-million or C$0.76 per share in the third quarter and C$73.84 million or $1.13 per share in the first nine months of the year. At the end of the quarter, the company had C$155 million in cash and subsequently sold its remaining stake in PBS Coals for another C$140.82 million. Sprott ended the day down C$0.06 at C$1.98.

The junior board hit fresh multi-year lows and appears poised to move ever lower. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, November 18th, 2008