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Resource Stock Roundup:Friday, July 10, 2009

Doug Casey — Fri, 10 Jul 2009 21:30:01 +0000

Commodity related stocks bounced off their recent lows and that helped the Canadian markets post gains during Thursday’s session. For the tale of the tape: the TSX Exchange rallied 1.25%, while the TSX Gold Index bounced up 0.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.85% with the advancers edging out the decliners by a 386 to 325 margin on a pathetic 108 million shares traded.

Union workers are becoming the star attraction for investors with Kinross Gold’s La Coipa gold mine in Chile on strike. Affected production is stated at 300 ounces of gold per day and the workers are standing by their wage demands. Kinross (NYSE:KGC) ended the session up C$0.05 at C$20.71.

Closer to home, a strike against Vale Inco in Sudbury is all but certain to begin on Monday with the contract expiring for members of United Steelworkers Local 6500. Vale is looking to trim costs from what it calls its highest cost operation and the workers are not fans of the cost cuts.

Uranium One achieved record quarterly attributable production of 833,900 pounds U308 from its Kazakhstan operations the second quarter of 2009. That’s an 18% jump over the first quarter. The company also tabled a new resource for its South Inkai mine. Total indicated resources now tally 34.1 million tonnes grading 0.053% U308 and total inferred resources came in at 42.8 million tonnes grading 0.047% U308, of which a total of 58.8 million pounds of U308 is attributable to Uranium One. The miner ended the day up C$0.18 at C$2.72.

Meanwhile shares of Ivanhoe Mines (NYSE:IVN) added C$0.38 to close at C$9.35 after the company announced that the Mongolia national parliament had voted to advanced approval discussions for the huge Oyu Tolgoi copper-gold project.

Shares of Quest Uranium continued to soar on big volumes with no reported news. Rumours are that the company is attracting big player interest thanks to their Strange Lake rare earth project in Quebec. Quest ended the day up C$0.075 at C$0.50.

The summer doldrums have clearly arrived with trading volumes on the junior bourse falling to extremely modest levels. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, July 10, 2009

Resource Stock Roundup:Tuesday, June 16th, 2009

Doug Casey — Tue, 16 Jun 2009 19:05:19 +0000

Profit-taking was the name of the game during Monday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange fell 2.35%, while the TSX Gold Index lost another 1.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 1.89% with the decliners swamping the advancers by a 585 to 300 margin on a robust 204 million shares traded.
Uranium One went shopping and elected to buy a 50% interest in the Karatau uranium mine in Kazakhstan from the Russian state-owned uranium mining company. The price tag is 117 million shares of Uranium One and a cash payment of $90 million. The deal also provides for a contingent payment of up to $60 million, payable in three tranches over the period between 2010 and 2012 subject to certain post-closing tax related adjustments. Uranium One ended the day up C$0.12 at C$2.95.

Shares of Merc International Minerals added C$0.035 to close at C$0.35. The junior is about to commence drilling on its high-grade Damoti gold project in the Northwest Territories.

Ventana Gold continued to defy gravity with the latest news indicating that mineralization from its La Mascota zone of the La Bodega project in northeastern Colombia is metallurgical challenged but recoverable. Ventana ended the day up C$0.38 to C$5.28.

Appleton Exploration added C$0.44 to close at C$0.64 after tabling a reverse circulation drill hole that returned 192 grams gold per tonne over 10 metres on the Manalo project in Mali, West Africa.

International Northair Mines sparked some interest after reporting surface sampling of 25.3 metres running 362.7 grams silver per tonne from the La Boracha zone on the La Cigarra project in Mexico. International ended the day up C$0.01 at C$0.075.

The second half of June started off on a sour note with the strength in the United States dollar hurting commodities. Is the selloff a one day wonder or the start of a trend? We shall see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, June 16th, 2009

Resource Stock Roundup:Thursday, May 28th, 2009

Doug Casey — Thu, 28 May 2009 19:29:45 +0000

It was a day of profit taking during Wednesday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange lost 1.40%, while the TSX Gold Index dropped 1.80% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.38% with the decliners beating out the advancers by a 417 to 404 margin on 182 million shares traded.
Shares of Underworld Resources soared C$0.36 to close at C$1.41 on good volumes after the junior tabled results from the first three holes from the 2009 drilling program from the Golden Saddle zone at the White Gold property. Highlights included 3.39 grams gold per tonne over 104 metres.

Golden Band Resources got ministerial approval for its La Ronge gold project in Saskatchewan. The junior closed at C$0.25 for a C$0.04 gain.

It was a rough day for Uranium One as the miner reported that Kazakhstan authorities are conducting an investigation into certain of the activities of Kazatomprom, the Kazakh state-owned uranium mining company. Uranium One’s Kazakh assets were acquired in November, 2005, from a group of Kazakh investors by UrAsia Energy, which became a subsidiary of Uranium One in April, 2007. Kazatomprom owns 30% of the Kyzylkum joint venture. Uranium One ended the day down C$1.30 at C$1.99.

The energy and information technology sectors of the index were the only ones to end the day in the black. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, May 28th, 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: Wednesday, February 11th, 2009

Doug Casey — Wed, 11 Feb 2009 19:55:57 +0000

The gold guys held up better than most during Tuesday’s session on the Canadian markets, as investors did not get that warm and fuzzy feeling that the proposed bank bailout in the United States will succeed. For the tale of the tape, the TSX Exchange plunged 2.54%, while the TSX Gold Index tacked on 0.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.10% with the declining issuers edging out the advancers by a 396 to 318 margin on 129 million shares traded.

Cash strapped Cadiscor Resources and cash-rich Tiomin Resources have agreed to merge in an all-share transaction that would see Tiomin consolidate its shares on a 10 old for 1 new basis, and then receive one Cadiscor share for each new Tiomin share. The move would allow Cadiscor to move forward into production at the Sleeping Giant mine in Northern Quebec. Cadiscor ended the day down C$0.18 at C$0.30, while Tiomin closed unchanged at C$0.03.

Uranium One inked a financing deal that would give a Japanese consortium a 19.95 per cent equity stake in the uranium miner. The company will sell 117 million shares at a price of C$2.30 to the consortium for a total of C$270 million. Uranium One also entered into an offtake agreement with the group that includes Tokyo Electric Power Toshiba, and the Japan Bank for International Cooperation. Uranium One ended the session up C$0.08 at C$2.03.

It was a good day for shareholders of Reservoir Capital, which added C$0.12 to close at C$0.35. The company announced that it has been awarded two energy licenses to develop hydroelectric projects in Serbia.

Grayd Resource tabled indicated resources of 17.2 million tonnes grading 1.01 grams gold per tonne and inferred resources of 9.4 million tonnes grading 1.05 grams gold per tonne at its La India gold project in Mexico. Gryad ended the day down C$0.015 at C$0.455.

The Ontario Superior Court of Justice has granted an injunction restraining Rusoro Mining from proceeding with any hostile takeover bid to acquire the shares of Gold Reserve (AMEX:GRZ) until the conclusion and disposition at trial of the action commenced by Gold Reserve. Shares of Rusoro were halted from trading at C$0.74, while Gold Reserve lost C$0.04 to close at C$1.24.

After a brief hiatus, all eyes are once again focused on bullion and its rosy prospects moving forward. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, February 11th, 2009