Contrarian Stock Market Investing News - Featuring Bargain Stocks » Kinbauri Gold

Resource Stock Roundup:Wednesday, June 10th, 2009

Doug Casey — Wed, 10 Jun 2009 20:05:08 +0000

The Canadian markets were stuck in a bit of a trading rut but the more junior exploration stocks continued to inch higher on speculation of upcoming drill results. For the tale of the tape, the TSX Exchange fell a modest 0.01%, while the TSX Gold Index was the big loser by dropping 2.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.07% with the advancers beating out the decliners by a 459 to 393 margin on a robust 252 million shares traded.
Inmet Mining elected to take more cash by expanding the previously announced bought deal by more than one million shares. Inmet amended the terms of its C$300-million equity bought deal to issue a total of 7.825 million shares, up from an earlier issuance of 6.75 million shares, at a price of C$44.50 per share for a total of C$348 million. Inmet closed down C$4.04 at C$44.50.

Mega Silver tabled an inferred resource of 2.77 million tonnes grading 2.82% copper, 0.06% Moly, 31.26 grams silver and 0.20 gram gold per tonne using a 1% copper cut-off grade for its Blue Caribou deposit in Nunavut. Mega ended the day up C$0.05 at C$1.07.

As expected, the Board of Kinbauri Gold recommended that Kinbauri shareholders reject the C$0.55 per share unsolicited offer made by Orvana Minerals. Kinbauri ended the day up C$0.02 at C$0.63, while Orvana closed at C$0.72 for a C$0.02 loss.

The bigger miners are taking as much money as the market is willing to give, while the purse strings are starting to loosen up for the more junior explorers. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup:Wednesday, June 10th, 2009

Resource Stock Roundup:Monday, June 08th, 2009

Doug Casey — Mon, 08 Jun 2009 19:25:52 +0000

Job losses in the United States slowed during the month of May but the overall unemployment rate came in higher at 9.4 per cent. The bulls took the news to mean that the glass is half full, while the bears think the glass is half empty and in the end it was the bulls that prevailed during Friday’s session on the Canadian Markets. For the tale of the tape, the TSX Exchange rallied 0.88%, while the TSX Gold Index was the big loser by falling 3.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.43% with the advancers beating out the decliners by a 451 to 390 margin on a respectable 197 million shares traded.
Much like its move against the HudBay Mining – Lundin Mining proposed merger, it looks like Jaguar Financial through legal threats has stopped the proposed Glen Eagle Resources investment in Kinbauri Gold. You see, Glen Eagle has been advised by Kinbauri that it has terminated the subscription agreement dated May 8, 2009. For its part, Glen Eagle believes that Kinbauri’s termination is a breach of the agreement and is considering its options. Meanwhile, Orvana Minerals all-cash offer of C$0.55 per share for Kinbauri is on the table. As it stands now, it will all come down to a court decision slated for June 17. Kinbauri ended the day unchanged at C$0.58, Glen Eagle fell C$0.01 to C$0.09 and Orvana closed up C$0.01 at C$0.74.

Harry Winston Diamond (NYSE:HWD) tabled a net loss of US$45.1 million, or US$0.68 per share, in the first quarter ended April 30, compared to earnings of US$21.3 million in the corresponding period a year earlier. The 30 per cent holder of the Diavik diamond mine in the Northwest Territories is being impacted by falling diamond prices and the ongoing global financial woes. Harry Winston ended the day down C$0.03 at C$7.30.

Despite a major plunge in the price of bullion, the junior market showed surprising strength with solid strength on the buy side. We shall see what Monday trading has in store.

Source: Resource Stock Roundup:Monday, June 08th, 2009

Resource Stock Roundup:Wednesday, May 13th, 2009

Doug Casey — Wed, 13 May 2009 19:35:38 +0000

The Canadian Markets took a bit of a breather during Tuesday trading as investors digest the growing deficit in the United States. For the tale of the tape, the TSX Exchange gave back a modest 0.16%, while the TSX Gold Index surged 4.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.43% with the advancers swamping the decliners by a 462 to 374 margin on 181 million shares traded.

Potash One added C$0.37 to close at C$2.49 after the company announced that well-known mining financier Robert Friedland will become chairman of the board. Mr. Friedland will advise Potash One on strategic financing for its potash resources in Saskatchewan.

Great Panther Resources produced 480,267 silver equivalent ounces in the first quarter from its Mexican operations. This led to a 6 per cent jump in revenues to $6.3 million. Great Panther ended the day up C$0.05 at C$0.51.

Copper producer Quadra Mining posted first quarter earnings of $26.7 million or $0.40 per share a 66 per cent drop from the $78.6 million or $1.42 per share tallied in the first quarter of 2008. Quadra closed at C$7.92 for a C$0.16 loss.

Beaten-down Phoenix Coal added C$0.035 to close at C$0.33 after the thermal coal miner announced a 59 per cent increase in reserves from its Gryphon mining complex in the Illinois Basin.

Orvana Minerals says it will proceed with its C$0.55 per share all-cash offer to acquire Kinbauri Gold. Management of Kinbauri has rejected the bid electing to proceed with the Glen Eagle deal. Glen Eagle will invest C$32 million for a 45% interest in Kinbauri’s El Valle/Carles project in Spain. Kinbauri ended the day down C$0.03 at C$0.57, while Orvana added C$0.02 at C$0.73.

It was a good session for the gold guys and a breakout to the upside is a good possibility moving forward. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup:Wednesday, May 13th, 2009

Resource Stock Roundup:Tuesday, May 12th, 2009

Doug Casey — Tue, 12 May 2009 20:27:07 +0000

After 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

Resource Stock Roundup: Monday, April 20th, 2009

Doug Casey — Mon, 20 Apr 2009 20:12:43 +0000

The bulls once again showed their strength during Friday trading on the Canadian markets, with investors laying down bets that the worst of the economic storm has now passed. For the tale of the tape, the TSX Exchange added 1.01%, while the TSX Gold Index lost another 3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.72%, with the advancers edging out the decliners by a 390 to 352 margin on volume of 133 million shares traded.

Despite the rebound in the overall equity markets, Vale Inco is shutting down all of its nickel operations in Ontario’s Sudbury Basin for two months this summer. In response to this news, FNX Mining is considering several possible production alternatives for its Sudbury mining operations, including stockpiling its ore for processing when Vale Inco resumes operations; temporarily suspending some or all production; and exploring the possibility of sending ore to other processing facilities. FNX ended the day down C$0.25 at C$6.10.

Glen Eagle Resources has stepped up to the plate by investing C$32 million in return for a 45 per cent stake in Kinbauri Gold’s El Valle-Carles gold-copper project in northwestern Spain. Glen Eagle also has the right to buy another 5 per cent by investing another $5 million. Glen Eagle closed down C$0.035 at C$0.145, while Kinbauri added C$0.02 to C$0.47.

The markets now appear to be poised to move higher even in the face of rather dire economic numbers. We shall see what Monday trading has in store.

Source: Resource Stock Roundup: Monday, April 20th, 2009

Resource Stock Roundup: Thursday, February 12th, 2009

Doug Casey — Thu, 12 Feb 2009 19:45:51 +0000

The gold guys continued to be the best performers during Wednesday trading on the Canadian markets as the price of bullion broke out to the upside. For the tale of the tape, the TSX Exchange dropped 0.91%, while the TSX Gold Index surged 7.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.02% with the advancing issuers edging out the decliners by a 405 to 343 margin on 163 million shares traded.

Merger mania is going full tilt with the latest marriage proposal being Victoria Gold’s all-share offer for StrataGold. Victoria is offering up 0.1249 of its shares for each StrataGold share held. The move would give Nevada focused Victoria the Dublin Gulch gold deposit in the Yukon. Victoria ended the day up C$0.01 at C$0.39, while StrataGold added C$0.01 at C$0.05.

Rubicon Minerals (AMEX:RBY) cut 173.7 grams gold per tonne over 2.5 metres at its Phoenix gold project in the Red Lake camp of Ontario. Rubicon ended the day up C$0.20 at C$1.73.

Not to be outdone, Colossus Mineral tagged 406.4 grams gold, 98.4 grams platinum and 115 grams palladium over 7.88 metres at its Serra Pelada project in Brazil. Colossus added C$0.78 to close at C$2.38.

Agrium (NYSE:AGU), North America’s third-largest fertilizer producer by market value, posted a fourth quarter profit of $124 million or $0.79 per share, down from the $172 million or $1.24 per share tabled in the same period a year earlier. However over the year Agrium, which ended the day up C$1.20 at C$47.21, posted record profits.

A stock to watch is Kinbauri Gold. The company’s shares were halted from trading at C$0.47 pending news. Kinbauri holds the advanced El Valle/Carles project in northwestern Spain and has been seeking strategic alternatives to move the project towards production.

Right now it is all about gold and nothing else. We will see what Thursday trading has in store.

Source: Resource Stock Roundup: Thursday, February 12th, 2009

Resource Stock Roundup: Tuesday, February 10th, 2009

Doug Casey — Tue, 10 Feb 2009 19:37:46 +0000

A one day delay in the release of the bank bailout plan for the United States had the bulls and the bears battling to a draw during Monday trading on the Canadian markets. For the taile of the tape, the TSX Exchange added a modest 0.44%, while the TSX Gold Index fell back 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.91% with the declining issuers edging out the advancers by a 350 to 334 margin on 155 million shares traded.

Merger mania amongst the junior explorers continued with Avion Resources looking to acquire Dynamite Resources. The proposal calls for Dynamite shareholders to get 0.75 of an Avion share for each Dynamite share. The move would consolidate the Segala mine property, in which Dynamite has a 40 per cent interest. Dynamite closed at C$0.14, up C$0.01, while Avion was unchanged at C$0.20.

Shareholders of Frontera Copper got an early Valentine’s Day present as Invecture Group raised its formal take over offer to C$0.75 from C$0.59 per share. Frontera ended the day up C$0.10 to C$0.78.

Drill results from the Border coal project in Saskatchewan sent shares of Goldsource Mines lower. Out of 18 core holes, five encountered thick intervals of core including a 50.9 metre section. Goldsource ended the day down C$0.57 at C$1.42.

In need of cash, Minera Andes inked a deal with Robert McEwen that would see the founder of Goldcorp (AMEX:UXG) take down 121.2 million shares at C$0.33 per share for a cool C$40 million. Minera ended the day up C$0.12 at C$0.49.

Red Back Mining posted record production in the fourth quarter for its mines in Mauritania and Ghana. Cash operating costs came in at an enviable $393 per ounce for the 72,664 ounces of gold. Despite the good news, Red Back followed the price of gold lower by ended the day down C$0.29 at C$6.81.

Shares of Kinbauri Gold added C$0.03 to close at C$0.42 after the company reported that a scoping study for its El Valle-Carles gold-copper project in northwestern Spain yields a net present value at a 10 per cent discount of $132 million and an internal rate of return of 42 per cent.

The buy side interest in resource stocks remains at favourable levels but with unemployment in North America soaring one has to wonder how long the optimism will last. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, February 10th, 2009