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Resource Stock Roundup: Tuesday, June 23rd, 2009

Doug Casey — Tue, 23 Jun 2009 21:30:49 +0000

Investors bailed out of the equity markets in a big way during Monday’s session on the Canadian Markets. For the tale of the tape, the TSX Exchange plunged 4.41%, while the TSX Gold Index dropped 5.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 3.59% with the decliners beating out the advancers by a 632 to 213 margin on a lower than normal 156 million shares traded.
The real news of the day did not involve any Canadian listed companies but it was a doozy. Xstrata (LON:XTA) proposed an all-share merger of equals with Anglo American (NASDAQ:AAUK) in a move that would create the world’s third largest mining company. For its part, Anglo flat out rejected the proposal. Stay tuned.

Fresnillo PLC has withdrawn its offer to buy Mag Silver. Fresnillo has not been able to conclude the independent valuation of Mag required under applicable Canadian securities laws in order to permit the offer to proceed and it is not clear to Fresnillo when or if this will happen. Mag ended the day down C$0.23 at C$5.32.

Victoria Gold bucked the downward trend after reporting a drill intercept of 2.5 grams gold per tonne over 274.3 metres at is Helen zone on the Cove project in north-central Nevada. Victoria added C$0.01 to close at C$0.39.

Shares of Andean American Mining fell C$0.055 to C$0.235 after the company reported that its Invicta project has a projected capital cost of $65.3 million with a net present value at an 11 per cent discount rate of the five-year free cash flow net of debt amortization of $159-million. All this using a gold price of $900 per ounce and copper price of $2 per pound.

Worries that the global economic recovery will be slower than some had been anticipating put pressure on resource stocks. Will we get the usual rebound on Tuesday or will the selling continue? We will see.

Source: Resource Stock Roundup: Tuesday, June 23rd, 2009

Resource Stock Roundup: Wednesday, December 3rd, 2008

Doug Casey — Wed, 03 Dec 2008 18:54:24 +0000

Coming off the second worst one-day sell off since 1987, the Canadian Markets continued to freefall during Tuesday trading with slumping commodity prices and political uncertainty sparking a renewed bout of uncertainty. For the tale of the tape, the TSX Exchange dropped 0.93%, while the TSX Gold Index bucked the down trend by adding 7.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.08% with the declining issuers outpacing the advancers by a 423 to 309 margin on volume of 153 million shares traded.

Esperanza Silver and partner Silver Standard (NASDAQ:SSRI) tabled a 31% jump in measured and indicated gold resources at their San Luis project in Peru. The new tally is 347,000 ounces of gold running 22.3 grams gold and nearly 9 million ounces of silver grading 578 grams silver per tonne. Esperanza ended the day up C$0.01 at C$0.50, while Silver Standard closed at C$11.05, for a C$0.04 gain.

As we mentioned on Monday, Mag Silver announced that a subsidiary of Fresnillo PLC, intends to make a formal offer to Mag Silver shareholders for all of the outstanding shares of Mag for $4.54 in cash. Mag closed at C$5.79, up C$0.83 on the day.

Evolving Gold cut 2.74 grams gold per tonne over 131 metres at its Rattlesnake Hills project in Wyoming. The junior ended the day up C$0.02 at C$0.24.

As if the falling economic activity is not enough for Canadians to worry about, the Federal opposition parties have joined forces in an effort to unseat the current minority Conservative government. The vote is set to go to the House of Commons on Monday. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, December 3rd, 2008

Resource Stock Roundup: Tuesday, December 2nd, 2008

Doug Casey — Tue, 02 Dec 2008 19:55:29 +0000

The Canadian Markets started off the month of December on a sour note with the bears once again coming out of hibernation to maul the bulls. For the tale of the tape, the TSX Exchange plunged 9.32%, while the TSX Gold Index fell 13.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 3.55% with the declining issuers outpacing the advancers by a 543 to 253 margin on volume of 144 million shares traded.

Waratah Coal added C$0.26 to close at C$1.51 after the company and Mineralogy Pty. Ltd. entered into a definitive support agreement, in conjunction with a revised offer by Mineralogy or a wholly owned subsidiary of Mineralogy to buy Waratah at C$1.60 per share in cash.

Animas Resources managed to add C$0.015 to close at C$0.415 after reporting an 8.5 metre drill intercept running 2.98 grams gold per tonne at its Berta area on its Santa Teresa project in Mexico.

Shares of Nuinsco Resources added C$0.005 to close at C$0.04 after Rainy River Resources bought the bonus payment and a royalty on claims that cover Rainy River’s core holdings in northwestern Ontario. The price tag was C$50,000 in cash and 200,000 shares. Rainy River ended the day down C$0.02 at C$0.68.

Paramount Gold and Silver (AMEX:PZG) reported that the Clavos 66 and 99 targets have inferred resources of 1.5 million ounces of gold equivalent on the San Miguel project in Chihuahua, Mexico. Paramount ended the day down C$0.01 at C$0.63.

A stock to watch during Tuesday trading is Mag Silver. After the close the company announced that a subsidiary of Fresnillo PLC, intends to make a formal offer to Mag Silver shareholders for all of the outstanding shares of Mag for $4.54 is cash. Mag closed at C$4.96, down C$0.96 on the day.

Not a good start to the tax loss selling month of December. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, December 2nd, 2008