Shares of Helio Resource added C$0.02 to close at C$0.52 after the junior announced two new gold zones on its Porcupine target in Tanzania. Highlights from the latest results included 72 metres running 0.6 gram gold per tonne.

Alamos Gold pulled a record intercept from the Mulatos pit in Mexico and announced that it has increased its exploration budget for 2009 to $10 million. The record results came in at 7.81 grams gold per tonne over 141.77 metres. Alamos ended the day down C$0.04 at C$9.71.

The first trading day of June was pretty much just like the month of May where investors gobbled up resource stocks. We shall see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, June 02nd, 2009

Shares of Teck Comincon (NYSE:TCK) dropped C$0.18 to close at C$7.42 after the diversified miner announced that it will cut 1,400 jobs and lower output from its coal operations.

The latest victim in the debt crisis is First Metals. The owner of the Fabie copper mine and the advanced Magusi mine project in Quebec filed with the Official Receiver a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. First Metals has not made the interest payment due December 31, 2008 on its outstanding senior secured Notes. First Metals ended the session down C$0.03 at C$0.025.

Goldcorp added C$0.59 to close at C$33.59 after the company said it plans to increase output by 50% over the next five years.

Meanwhile, Kinross Gold (NYSE:KGC) says it will spend $460 million in 2009 to boost its production by 32% to around 2.5 million ounces of gold. Kinross ended the day up C$1.29 at C$21.57.

ATW Gold cut 16 metres grading 9.79 grams gold per tonne at its Burnakura gold mine project in Western Australia. ATW ended the day up C$0.02 at C$0.48.

Grande Cache Coal lost C$0.13 to close at C$1.05 after the miner announced that due to the worldwide economic slowdown, steel producers are uncertain about the level of demand they will experience in 2009 and beyond.

Cutbacks and mine closures continue to take center stage on the news front. We will see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, January 09th, 2009

For the tale of the tape, the TSX Exchange lost 0.95%, while the TSX Gold Index fell 6.80% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 4.04% with the advancing issuers swamping the decliners by a 483 to 368 margin on volume of 161 million shares traded.

Goldcorp tabled third quarter earnings of $297 million or $0.42 per share thanks to a big foreign exchange gain and stronger gold prices. Taking out the $240 million foreign exchange gain, profit fell to $64.7 million or $0.09 a share, from $82.3 million, or $0.12 a share in the same period in 2007. Goldcorp ended the day down C$1.98 at C$22.54.

High River Gold Mines (HRG) moved a step closer to bankruptcy after announcing that delays in getting its Taparko-Bouroum mine into commercial production has put one of its subsidiaries in breach of its financial covenants. Financial problems also put plans to purchase remaining 50 per cent of Prognoz silver project in Russia off until at least the end of November. High River ended the day down C$0.03 at C$0.11.

It was a good day on no news for Midway Gold (MDW). The company is currently raising C$2.75 million priced at C$0.22 per unit, which holds one share and one C$0.28 warrant. Midway ended the day up C$0.17 at C$0.47.

Investors in the more speculative exploration stocks are breathing a sigh of relief because buyers appear to be back bottom feeding in the sector. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, November 3, 2008

Shares of Hudbay Minerals (HBM) added C$0.38 to close at C$5.35, while Lundin Mining failed to attract interest losing C$0.05 to close at C$1.95.

Diversified miner Teck Cominco (TCK) added C$1.20 to close at C$16.30.

Shares of Blue Note Mining (BN) hit C$0.01 after the company announced that its Caribou and Restigouche zinc and lead mines in eastern Canada are being put on care and maintenance. Current zinc and lead prices make the operation unprofitable.

Shares of Alexis Minerals (AMC) jumped C$0.09 to close at C$0.395 following news of a 3.45 metre drill intercept running 6.81% copper at its project in Val d’Or, Quebec.

The big board gold miners got slammed yet again as Barrick Gold (ABX) fell C$1.11 to close at C$27.93, Goldcorp dropped C$1.05 to close at C$23.70, Kinross Gold ended the day down C$0.15 at C$12.75, Yamana Gold (YRI) gave back C$0.09 to close at 5.55 and Agnico Eagle (AEM) bucked the trend by adding C$0.61 to close at C$42.53.

Inflation versus deflation seems to be the trading story of the day, with several pundits now betting against gold as interest rates appear set to fall further. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, October 20th, 2008

Junior explorers that have liquidity faced the brunt of the selloff with Full Metal Minerals dropping C$0.075 to close at C$0.315, Hathor Exploration (HAT) lost C$0.23 to close at C$1.50 and VMS Ventures (VMS) dropped C$0.01 to close at C$0.28. Full Metals is in the midst of the bulk sample at its Lucky Shot project in Alaska, Hathor has a nice looking uranium discovery at its MidWest NorthEast project in Saskatchewan and VMS has a high-grade base metal discovery on its Reed lake project in Manitoba.

The big board gold miners took it on the chin with Barrick Gold (ABX) falling C$4 to close at C$29.20, Goldcorp dropped C$3.41 to close at C$24.37, Kinross Gold ended the day down C$2.37 at C$12.90, Agnico Eagle (AEM) plunged C$5.28 to close at C$41.92 and Yamana Gold (YRI) gave back C$0.48 to close at 5.64.

The junior board looks set to test the 2002 lows of 890 and a break below this one would mark uncharted waters for the Venture Exchange. The historic low goes back to the VSE Index days in 1998 and 1999 when the bourse treaded water in the 400 point range. We will see what Friday trading has in store.

Source: Resource Stock Roundup Friday, October 17, 2008

For the tale of the tape, the TSX Exchange gained 2.30%, while the TSX Gold Index added an impressive 19.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 1.99% with the declining issuers swamping the advancers by a 660 to 315 margin on good volume of 191 million shares traded.

The trading on the junior board was all about those companies that happen to have some liquidity for the sellers. Shares of VMS Ventures, which has been posting stellar results from its Reed Lake Discovery project in Manitoba, lost C$0.035 to close at C$0.295 with nearly 1 million shares traded, and B2Gold, the once highly touted Colombian gold explorer, lost C$0.05 at C$0.45 on over 1.9 million shares traded.

Shares of Eurasian Minerals (EMX) added C$0.13 to close at C$0.85 after the junior announced trench results of 19.15% copper and 140 grams silver per tonne over 14 metres at the Champagne prospect in Haiti.

Sherwood Copper (SWC) had a rough session on no new developments. The Yukon copper miner lost C$0.32 to close at C$2.05.

The big board gold miners were the winners of the day, as Barrick Gold (ABX) added C$6.53 to close at C$40.20, Goldcorp (G) surged C$5.53 to close at C$34.36, Agnico Eagle (AEM) tacked on C$6.95 to close at C$57.20, Kinross Gold (K) climbed C$3.05 at C$18.30 and Yamana Gold (YRI) added C$1.34 to close at C$8.40.

It is all about cash preservation for the junior explorers as they try to ride out this credit crunch. A massive amount of juniors have essentially gone no bid, making it impossible to sell in any size. We will see what Thursday trading has in store.

Source: Resource Stock Roundup Thursday, October 9, 2008

In a surprise move, Goldcorp (G) stepped up to the plate and agreed to buy Gold Eagle Mines (GEA) in a deal valued at C$1.5 billion. The major will pay C$6.80 in cash and 0.146 Goldcorp share for each Gold Eagle share. The acquisition of Gold Eagle gives Goldcorp control of the Bruce Channel ore body, which lies next to the Red Lake mine, its largest operation. Agnico-Eagle Mines recently bought a 5.2% interest in Gold Eagle, while Goldcorp already owned a 4.7% stake. Goldcorp also came out with a second quarter loss of $9.2 million, or $0.01 per share, compared with a profit of $2.9 million in the year earlier period. Rising costs and foreign exchange expenses were attributed for the short fall. Goldcorp ended the session down C$1.70 at C$38.15, while Gold Eagle added C$1.71 to close at C$12.28.

Speaking of buying, High River Gold Mines (HRG) went out and bought the remaining 50% interest it did not own in the Prognoz silver project in Russia. The price tag is 34.1 million shares, marking 9.9% of the company and assuming debt obligation totaling $16 million. High River ended the day up C$0.13 at C$1.62.

On the permitting front, Tamerlane Ventures (TAM) has been issued a Type A Land Use Permit green lighting construction at its Pine Point lead-zinc project in the Northwest Territories. Tamerlane ended the day up C$0.16 at C$0.57.

Not to be out done, Canadian Zinc (CZN) entered into a memorandum of understanding with the Parks Canada Agency in regards to the expansion of the Nahanni National Park Reserve and the development of the Prairie Creek base metal mine in the Northwest Territories. Canadian ended the day up C$0.18 at C$0.65.

Could the junior board finally be ready to move higher or is the recent up tick a head fake to entice unwilling buyers? We will see what Friday trading has in store.

Source: Resource Stock Roundup Friday August 1, 2008

A load of performance tables have just been published. On average the last 12 months has seen tier 1 gold companies shed 20% of their stock market values. And even a safe bet like big boy BHP Billiton has lost 16%.

A warning comes from international consultant Pricewaterhouse Coopers. In its latest mining report it says earnings overall in the sector may have peaked. Revenue for the top 40 companies might have grown 32% last year, but cost rises of 30% are up with that.

Mining houses are having to absorb many of their costs. Net result? The “boom cycle may make way for a bust cycle”, says top South African analyst Gary Quinn. He works at Prudential Portfolio Managers, one of South Africa’s leading investment houses.

Of course, the current, much-publicised supply shortages are a factor in rising prices. But that is not much good to the miners when costs are going through the roof. The inevitable result is lower earnings. Quinn has just published his sums. They show that earnings for South Africa’s miners could be flat through all of 2009.

The gloom is global! Investors have been selling off big time – even the usually acquisitive Russians! Much is being made of the sale by Suleyman Kerimov (35th on Forbes’s rich list) of his stake in Russia’s top silver producer, Polymetal.

Kerimov got out at a 30% premium to the then market price. But traders are reading his move as a clear indication that this sage investor thinks that silver and gold valuations have peaked. And he is not alone.

Unsurprisingly, South African mining shares have been hammered hardest. Boards there are having to deal with a ghastly range of value-destroyers. There are labour issues, safety issues, power issues and the longer term concern that gold yields are declining. These have slumped over 25% since 1999. Miners have had to seek gold at deeper and deeper levels and at a much higher cost.

Take Gold Fields, one of the world’s largest producers of gold. Given the high gold price, now hovering around the $900 mark, one would have thought markets would be moving in this tier 1 producer’s favour. Wrong! In fact Gold Fields’ share price has nearly reached 12 month lows.

Other South African based companies haven’t fared too well, either. AngloGold Ashanti is some 36% off its 12 month high. Harmony, South Africa’s third biggest producer, is down 27%.

Further down the chain, tier 2 producers are more than 30% off the 12 month weighted average. Even an old market favourite — RandGold Resources — has taken a pounding in recent weeks. It has lost a whopping one third of its market value in just three months.

RandGold management says that is down to the fall in gold bullion prices earlier this year. That and — surprise surprise — the cost of energy!

Randgold’s key operations in Mali, Loulo and Morila, depend on diesel power. So, in spite of producing more, Randgold’s profits fell 10% compared to last year’s figures. Management also blames the weak dollar and increased costs of royalty payments.

Total despair? No. We remain optimistic. Along with the likes of resources bank Macquarie, we believe the key is to be selective. We are taking out our calculators to search for low cost producers.

Macquarie has done some of the work for us, highlighting Goldcorp, Agnico-Eagle and Yamana. Goldcorp maintained the lowest costs among senior miners at $240 per ounce of gold. That compared to the overall top gold producers’ average of $385/oz!

So keep looking,

Erin and Isabel

Source: Investing In Gold Miners? Be Selective – And Look at Those Costs!

Goldcorp is one of the largest and best-managed gold miners in the world. Most of its assets reside in Canada – one of our favorite destinations for resource investment. As you can see from our chart today, this bellwether is exhibiting the signs of a bull market.

A bull market is defined by its tendency to make “higher highs and higher lows.” Goldcorp’s chart below is a classic example. Since correcting down below $22 a share last year, Goldcorp now sits at $40. Each rally reaches a little higher than the previous one. Each decline fails to reach previous lows.

Our colleague David Galland put it in simple terms back in March. After years of digesting higher production costs, big gold miners are reaping the benefits of $900 gold. Cash flow is increasing… and it’s a bull market in gold stocks.

Source: Goldcorp: The Picture of a Bull Market

For the tale of the tape, the TSX Exchange fell 1.6%, while the TSX Gold Index dropped 2.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged 2.51% with the declining issuers swamping the advancers by a 622 to 386 margin on volume of 191 million shares traded.

Western Prospector came out and stated that the takeover proposal by Khan Resources is “inadequate and falls significantly short of Western’s true value.” Under the proposal, each Western Prospector share would get 0.685 of a Khan share. Western has $25 million in cash and the deal has a total value of C$35 million. Western ended the day down C$0.02 at C$0.69, while Khan added C$0.02 at C$1.03.

Stepping in where few players are venturing these days, Goldcorp has agreed to guarantee a C$40 million credit facility to Terrane Metals to meet capital equipment procurement for its 100%-owned Mt. Milligan copper-gold project in central British Columbia. The non-revolving credit facility will allow Terrane to purchase the equipment it needs to build a 60,000 tonne per day open-pit mine and process plant. Terrane ended the day down C$0.05 at C$0.55.

Sanu Resources Ltd. has intersected a new volcanic-hosted massive sulphide zone on its Aderat prospect 4.5 kilometres north of its Hambok copper-zinc deposit in Eritrea. Assay results are pending. Sanu ended the day down C$0.02 at C$0.78.

For those looking for a high profile speculative punt, Troon Ventures appointed Michael Kenyon, Catherine McLeod-Seltzer and Jonathan Rubenstein to its board of directors that already holds Bruce McLeod, Stephen Quin, Colin K. Benner, John Robins and Zara Boldt. This brings together the founders and key players of success stories like Canico, Sherwood Copper, Arequipa and Eurozinc. Troon ended the day up C$0.24 at C$0.94.

The correction on in the Canadian markets is most welcome after the stellar run the board has made over the past month or so. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, May 28th, 2008