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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:Thursday, July 9, 2009

Doug Casey — Thu, 09 Jul 2009 22:30:59 +0000

The selloff in commodity-related stocks continued with a vengeance during Wednesday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange was down 1.94%, while the TSX Gold Index fell 3.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged 3.32% with the decliners swamping the advancers by a 593 to 248 margin on a modest 168 million shares traded.
Shares of Atac Resources gave back C$0.03 of yesterday’s C$0.19 gain to close at C$0.60. Atac reported a drill intercept of 24.07 grams gold per tonne over 28.04 metres including 5.34 metres of just over 100 grams gold per tonne from its Rau project in the Yukon.

Mercator Minerals shipped 9,091,708 pounds of copper, 418,987 pounds of molybdenum and 56,441 ounces of silver from its Mineral Park Mine in Arizona during the second quarter. In the process the company generated $5.7 million in earnings before interest, taxes, depreciation and amortization. Despite the news, Mercator failed to fight the downdraft in the market as the company ended the day down C$0.08 at C$1.13.

Exeter Resource (AMEX:XRA) tabled an inferred resource of 646,000 ounces of gold equivalent, which comprises 371,000 ounces of gold at a grade of 10.5 grams gold per tonne and 19.2 million ounces of silver at a grade of 545 grams silver per tonne at its Cerro Moro project in Argentina. Exeter ended the day down C$0.21 at C$3 even.

Bucking the down trend on no new developments was Quest Uranium. 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$0.13 at C$0.425

The falling price of oil and bullion is putting immense pressure on the resource rich Canadian markets. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, July 9, 2009

Resource Stock Roundup:Wednesday, July 01st, 2009

Doug Casey — Wed, 01 Jul 2009 20:29:31 +0000

Investors heading for the exits ahead of the Canada Day holiday as a sea of red engulfed the Canadian Markets during Tuesday’s session. For the tale of the tape, the TSX Exchange down 0.97%, while the TSX Gold Index fell 2.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 1.23% with the decliners edging out the advancers by a 413 to 361 margin on 151 million shares traded.
Shares of Denison Mines (AMEX:DNN) failed to get a lift after reporting a drill intercept of 55% U308e over 6 metres from its Phoenix East target on the Wheeler River property in northern Saskachewan. Denison ended the day down C$0.04 at C$1.93.

Shares of Western Prospector Group added C$0.18 to close at C$0.53 after the company reported that 69 per cent of its shares were tenders to the C$0.56 per share offer from CNNC International.

With holidays in both Canada and the United States taking place over the next few days, trading action is expected to remain on the light side. We will see what Thursday trading has in store.

Source: Resource Stock Roundup:Wednesday, July 01st, 2009

A Sure Way to Play Uranium

Andrew Gordon — Tue, 16 Jun 2009 19:43:15 +0000

No commodity has disappointed more than uranium. But don’t let that put you off. Now is the perfect time to become a uranium buyer (I’m assuming that you’re not the head of state of either North Korea or Iran!).

Prices hit $136 in 2007 and then began a long pullback to around $40. They bottomed in April and have since rebounded to where they are right now – at the $50 per pound level.

Can they go up from here? Take another look at the chart. You can see that the highs are still getting lower, and the lows are also dropping. In other words, the downward trend is still intact.

Based on market fundamentals, the price of uranium should be going up soon. Nuclear power contributes 16 percent of world energy demand. In the US, it contributes 20 percent. And with 30 nuclear plants under construction and another 38 in the pre-construction stages with dozens more planned, nuclear’s contribution is sure to rise.

And there won’t be enough uranium to go around. The Atomic Energy Agency recently said that Russia and the U.S. may cover only five percent of world demand by 2015.

The current shortage in uranium production is covered by the uranium from dismantled weapons the U.S. gets from Russia. The government-created company, USEC, down-blends this uranium for use in nuclear power plants. But that agreement goes away in 2013.

But the global nuclear power plant construction program isn’t going anywhere. With China and India leading the way, nuclear’s resurrection shouldn’t be ignored by investors.

The entire nuclear industry is revving up, including uranium exploration and mining. It takes 8-12 years to build a mine and get the stuff out of the ground.

One of the bigger companies which has been mining uranium for a long time is Cameco (NYSE:CCJ). Its stock should grow right along with the sector itself.

Source: A Sure Way to Play Uranium

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:Friday, June 05th, 2009

Doug Casey — Fri, 05 Jun 2009 19:29:33 +0000

In a reversal of fortunes, the commodity heavy Canadian Markets made back a good chunk of Wednesday’s sell-off during Thursday trading. For the tale of the tape, the TSX Exchange rallied 1.82%, while the TSX Gold Index climbed 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 2.27% with the advancers beating out the decliners by a 495 to 359 margin on a robust 220 million shares traded.
Hathor Exploration cut 2.5 metres grading 70 per cent U308 at its Roughrider discovery on its 90 per cent held Midwest Northeast property in Saskatchewan. Of the 23 holes reported, 20 intersected uranium mineralization. Hathor ended the day up C$0.07 at C$2.23.

Colossus Minerals tagged more big numbers from its Serra Pelada project in Brazil. Highlights included 27.9 metres grading 35.49 grams gold per tonne, 19.89 grams platinum and 25.14 grams palladium. Colossus ended the session at C$3.50 for a C$0.12 gain.

Greystar Resources may have put out news of a new discovery on its Angostura deposit in Colombia but it is the neighboring Ventana Gold that has shareholders smiling. Ventana appointed Robert Pirooz to the board of directors. Mr. Pirooz is general counsel for Pan American Silver (NASDAQ:PAAS). Ventana reported a 94.5 metre intercept grading 5.83 grams gold per tonne from its La Bodega property. Lumina Capital holds 16.9 per cent of Ventana. Greystar closed up C$0.06 at C$3.80, while Ventana added C$1.22 to close at C$3.45.

After one day’s rest, the resource mojo is back for investors. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, June 05th, 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: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: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, May 04th, 2009

Doug Casey — Mon, 04 May 2009 19:23:40 +0000

The Canadian Markets made a valiant effort to keep the seven-week winning streak intact but by the end of trading on Friday the late week rally fell just short. For the tale of the tape, the TSX Exchange surged 1.85%, while the TSX Gold Index fell 0.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.12% with the advancers beating out the decliners by a 448 to 334 margin on volume good volumes of 168 million shares traded.

Cameco (NYSE:CCJ), the world’s largest uranium miner tabled a 38 per cent drop in first quarter earnings to $82 million, or $0.22 per share down from the $133 million or $0.37 per share tallied in the same period of 2008. The average uranium selling price came in at C$46.72 per pound. Cameco expects to sell between 32 to 34 million pounds of uranium in 2009. Cameco ended the day up C$1.75 at C$29.15.

Sticking to the uranium theme, Northern Continental Resources and Denison Mines (AMEX:DNN) are looking to wed. Denison is offering one of its shares for every 10.87 shares of Northern. Northern ended the day up C$0.07 at C$0.195, while Denison closed at C$2.38 for a C$0.14 gain.

The Canadian currency and the Canada Market are making a strong move to the upside with commodity prices leading the way. We shall see what Monday trading has in store.

Source: Resource Stock Roundup:Monday, May 04th, 2009