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Resource Stock Roundup:Friday, May 15th, 2009

Doug Casey — Fri, 15 May 2009 18:58:52 +0000

In a reversal of fortunes, the bulls bounced back with a vengeance to gain back most of Wednesday’s losses during Thursday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange added 1.44%, while the TSX Gold Index climbed 0.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.66% with the decliners edging out the advancers by a 393 to 382 margin on 212 million shares traded.
The big percentage gainer for the day was Jura Energy. The company reported that gas shows were observed over a 480 metre section on its Rafay-1 well and gas shows over 1,300 metres in its Jamali Deep-1 well both in Pakistan. Jura added C$0.245 to close at C$0.345.

Iamgold (NYSE:IAG) posted a first quarter profit of $52.5 million, or $0.17 per share, compared with $34.4 million, or $0.12 per share, in the same period a year earlier. The gold miner benefited from a sizeable tax gain of $29.4 million on the sale of gold bullion. Iamgold ended the day down C$0.11 at C$11.45.

Denison Mines (AMEX:DNN) tabled a loss of $1.3 million or $0.01 per share in the first quarter. The miner sold 225,000 pounds U3O8 during the quarter from U.S. production at an average price of $66.03 per pound and 98,000 pounds U3O8 from its Canadian production under an existing long-term contract at an average price of $49.91 per pound. Denison ended the day up C$0.02 at C$2.24.

The 10,000 point mark on the big board appears to be a resistant mark, while the junior board is keeping its head above the crucial 1,000 point threshold. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, May 15th, 2009

Resource Stock Roundup: Thursday, February 26th, 2009

Doug Casey — Thu, 26 Feb 2009 19:34:28 +0000

Gold took it on the chin for a second consecutive day with the financials showing signs of strength during Wednesday’s session on the Canadian Markets. For the tale of the tape; the TSX Exchange added 0.93%, while the TSX Gold Index lost 0.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 0.16% with the advancers edging out the decliners by a 374 to 349 margin on 133 million shares traded.

It was a rough day for Sherritt International after the company tabled a $592.1 million or $2.03 per share loss in the fourth quarter thanks in large part to a $463.3 million impairment of goodwill on its Ambatovy Project in Madagascar. In 2008, Sherritt recorded a net loss of $289.7 million or $1.05 per share compared to 2007 net earnings of $370.4 million, or $1.79 per share. More importantly, Sherritt came out and stated that it may not be in compliance with one of its financial covenants in the second quarter of 2009 applicable to certain short-term credit facilities that provide up to $200 million of total liquidity. Sherritt ended the session down C$0.52 at C$2.07.

Iamgold (NYSE:IAG) posted record production of 997,000 ounces of gold in 2008 with adjusted fourth quarter earnings coming in at $16.4 million or $0.03 per share. Including impairment charges the company posted a loss of $96.4 million or $0.33 per share in the last quarter. For the year, Iamgold lost $9.9 million or $0.03 per share but stripping out the one-time items the company earned $107.5 million or $0.36 per share. Shares in the miner closed down C$0.14 at C$9.51.

Serengeti Resources managed to add C$0.015 to close at C$0.245 after tabling an indicated resource of 182.6 million tonnes grading 0.28 gram gold per tonne and 0.29% copper all at a 0.25% copper equivalent cut off at its Kwanika property in British Columbia.

Junior exploration stocks usually go into hibernation around this time of year and don’t wake up until mid-to-late summer. Merger mania may make the trend different this time. We will see what Thursday trading has in store.

Source: Resource Stock Roundup: Thursday, February 26th, 2009

Resource Stock Roundup: Friday, January 30th, 2009

Doug Casey — Fri, 30 Jan 2009 20:00:44 +0000

It was gold’s turn to shine during Thursday trading on the Canadian markets with investors running for cover in a sea of weak economic data. For the tale of the tape, the TSX Exchange fell 1.61%, while the TSX Gold Index surged 6.2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.22% with the advancing issuers beating out the decliners by a 396 to 318 margin on 120 million shares traded.

Iamgold (NYSE:IAG) produced 997,000 ounces of gold in 2008 at cash costs of between $455 to $470 per ounce. Production for 2009 is expected to hit 880,000 ounces of gold at an average cash cost of $470 to $480 per ounce. Iamgold closed up C$0.50 at C$8.42.

Bravo Venture tabled a 1.2 metre intercept running 1,672 grams silver and 2 grams gold per tonne at its Homestake Ridge project in northwestern British Columbia. Bravo ended the day flat at C$0.46.

Brilliant Mining reported record nickel metal production for the December 2008 Quarter from its 25% owned high-grade Lanfranchi Nickel Mine in Western Australia. Some 873,390 pounds of payable nickel went to the company. Brilliant ended the session down C$0.01 at C$0.175.

The rising price of bullion helped spark some trading activity in the beaten down junior resource space. We will see what Friday trading has in store.

Source: Resource Stock Roundup: Friday, January 30th, 2009

Resource Stock Roundup:Friday, January 16th, 2009

Doug Casey — Fri, 16 Jan 2009 20:30:48 +0000

The selling continued early in the trading session with investors worried about the survivability of the financials but a massive mid-day reversal propelled equities higher during Thursday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange added 2.20%, while the TSX Gold Index popped 5.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.62% with the declining issuers edging out the advancers by a 363 to 270 margin on a paltry 106 million shares traded.

Iamgold (NYSE:IAG) came out with a preliminary assessment study for its Westwood project in Quebec. The miner envisions producing 187,000 ounces of gold per year for 15 years with cash costs ringing in at $298 per ounce. Capital costs are projected at $329 million. Iamgold ended the day up C$0.85 at C$7.60.

In Mexico, Fortuna Silver Mines reports that commercial concentrate grades from its San Jose project came in at 135 grams gold and 17,130 grams silver per tonne with recoveries of 88 per cent. Fortuna ended the session up C$0.03 at C$0.93.

Luna Gold’s Piaba gold project in Brazil now holds a measured and indicated resource of 19.6 million tonnes grading 1.34 grams gold per tonne. That’s a 21 per cent jump over the earlier estimate. Luna closed the session at C$0.14 for a C$0.03 gain.

The optimist in me says the late day buying marks the start of another bear market rally, but the pragmatist in me says that there is little reason for equities to move higher. We will see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, January 16th, 2009

Resource Stock Roundup: Friday, December 12th, 2008

Doug Casey — Fri, 12 Dec 2008 19:59:21 +0000

The biggest proposed leveraged buyout in Canadian history has finally come to an end, with telecom giant BCE failing to met the solvency requirements. The collapsed deal, plus problems with a bailout of the auto sector in the United States, put a damper on the big board stocks during Thursday trading on the Canadian markets. For the tale of the tape, the TSX Exchange slumped 2.8%, while the TSX Gold Index gave back 3.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.12% with the advancing issuers beating out the decliners by a 424 to 416 margin on volume of 238 million shares traded.

Iamgold (NYSE:IAG) went shopping and picked up Orezone Resources (AMEX:OZN) in an all stock deal valued at C$139 million. Of interest to Iamgold is the advanced Essakane project in West Africa where full production is expected to begin in 2010. Iamgold ended the day down C$0.22 at C$5.88, while Orezone added C$0.345 to close at C$0.52.

Meanwhile, Avion Resources tagged 26.94 grams gold per tonne over 16.9 metres at its Tobakoto property in Mali. Avion ended the day up C$0.02 at C$0.07.

Shares of Rubicon Minerals (AMEX:RBY) added C$0.18 to close at C$1.18 after the company reported that a step out hole yielded 3,151.1 grams gold per tonne over 0.5 metre at its Phoenix property in Ontario.

Victoria Gold cut 16.75 grams gold per tonne over 29.6 metres on the Helen zone of its Cove project in Nevada. Shares in the company were halted from trading pending the news at C$0.20.

The junior market bucked the negative tone by posting a winning session. It looks like some investors finally stepped up to the plate to buy the undervalued exploration companies. We will see what Friday trading has in store.

Source: Resource Stock Roundup: Friday, December 12th, 2008