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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: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:Friday, May 08th, 2009

Doug Casey — Fri, 08 May 2009 17:48:36 +0000

Profit taking was the name of the game during Thursday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange gave back 1.74%, while the TSX Gold Index lost 0.60% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, kept the drive alive by adding 0.50% with the advancers edging out the decliners by a 454 to 424 margin on 193 million shares traded.

Goldcorp (NYSE:GG) saw its first-quarter profit rise by 27 percent to $290.9 million or $0.40 per share from $229.5 million or $0.32 per share in the same period a year earlier. Gold production rang in at 616,500 ounces marking an 18 percent increase. The major expects to produce about 2.3 million ounces of gold this year at costs of $365 to $400 per ounce. Goldcorp ended the day up C$0.87 at C$36.34.

Lundin Mining posted a first quarter loss of $8.6 million or $0.02 per share with operating earnings plunging to $38.2 million from $182.9 million in the first quarter of 2008. Lower metal prices resulted in a 60 percent drop in sales to $123.4 million. Lundin ended the day down C$0.18 at C$2.57.

Great Panther Resources is reporting some nice numbers along the Recompensa vein at its Topia mine in Mexico. Channel sampling has indicated that 133 metres of strike length averages 16.87 grams gold per tonne, 175 grams silver per tonne, 3.8 per cent lead, and 3.17 per cent zinc across an average width of 0.24 metres. Great Panther ended the session at C$0.49 for a C$0.025 gain.

After posting stellar gains, taking a little money off the table is probably a prudent move. With the job numbers for the United States due out, it could be an interesting session on Friday. We shall see.

Source: Resource Stock Roundup:Friday, May 08th, 2009

Expect The World’s Largest Copper Producer to Keep Rising

Brian Hunt — Fri, 23 May 2008 14:29:37 +0000

Mining investors take note… If copper, zinc, nickel, and tin prices remain close to current levels, these miners will make a ton of money this year.

That’s how we signed off our March 4 column. Back then, big base-metal miners, including Lundin Mining, Southern Copper, and Freeport-McMoRan were in one of their worst slumps in recent memory. Investors couldn’t stand the thought of owning their shares. Copper prices are highly dependent on global economic health… and that health was in question.

But as we’ve covered with Home Depot and the Dow Transports, the market is now answering the global economic question with, “You know… things don’t look so bad.”

In addition to the strength in the Depot and the Transports, the price of copper refuses to decline from all-time highs near $4 per pound. These are all signs of economic strength. If this strength continues, expect the prediction above to come true… and expect Freeport-McMoRan (the world’s largest public copper producer) to keep rising.

Source: Expect The World’s Largest Copper Producer to Keep Rising