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Resource Stock Roundup:Monday, June 29th, 2009

Doug Casey — Mon, 29 Jun 2009 21:04:14 +0000

It was yet another quiet Friday trading session on the Canadian Markets. For the tale of the tape, the TSX Exchange added 0.33%, while the TSX Gold Index gave back 2.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.77% with the advancers edging out the decliners by a 410 to 359 margin on a weak 131 million shares traded.
Potash Corp. of Saskatchewan (NYSE:POT) finally came clean on its second quarter profit estimates in the wake of weak demand for potash. The world’s largest producer of potash now expects to earn $0.70 per share in the second quarter a big drop from its earlier guidance of $1.10 to $1.50. Potash ended the day down C$0.71 at C$107.34.

Western Canadian Coal saw its fourth quarter revenue rise 48 percent to C$111,684,000 from the sale of 346,000 tonnes of coal. Earnings for the period ended March 31 came in at C$47.6 million or C$0.23 per share. Western ended the day up C$0.13 at C$2.12.

The Canada Day holiday falls mid-week so trading action heading into the end of June is expected to be on the light side. We will see what Monday’s session has in store.

Source: Resource Stock Roundup:Monday, June 29th, 2009

Resource Stock Roundup:Thursday, May 21st, 2009

Doug Casey — Thu, 21 May 2009 19:36:57 +0000

The bulls continued to ravage the bears during Wednesday trading on the Canada Markets as a drawdown in oil inventories sparked a big rally in the energy space. For the tale of the tape, the TSX Exchange added another 1.3%, while the TSX Gold Index rallied 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.85% with the advancers edging out the decliners by a 442 to 393 margin on 178 million shares traded.
Western Canadian Coal is looking to wed with 34 percent stakeholder Cambrian Mining PLC. The acquisition values Cambrian at approximately C$120 million or 57 pence based on the closing price of Western shares of 76 pence. Along with its 34 percent interest in Western, Cambrian also holds $29 million of Western’s convertible debentures. Western ended the day up C$0.03 at C$1.40.

Oro Gold tagged 7.6 grams gold per tonne over 42.5 metres from its Trinidad property in Mexico. Oro ended the day up C$0.02 at C$0.51.

Shares of Bowmore Exploration surged C$0.165 to C$0.40 after the junior announced that Osisko Mining was taking down C$3 million of a C$4.2 million private placement in Bowman. Bowmore says it will use the proceeds from the private placement for exploration work on the Santa Elvira gold-copper property in Mexico, new project acquisitions, development and for working capital. Osisko ended the day up C$0.33 to C$5.95.

Shares of Centamin Egypt added C$0.35 to close at C$1.61 after the miner reported a 43 metre drill intercept running 17 grams gold per tonne starting a 499 metres downhole at its Sukari Hill porphyry project.

All lights appear green for equity investors but with the big board now at new highs for the year, a pullback could well be pending. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, May 21st, 2009

Resource Stock Roundup: Wednesday, April 29th, 2009

Doug Casey — Wed, 29 Apr 2009 19:29:16 +0000

The Canadian Markets continued to fall ever so modestly during Tuesday’s session as the price of bullion dropped below the $900 per ounce mark. For the tale of the tape, the TSX Exchange fell 0.50%, while the TSX Gold Index lost 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.98% with the decliners beating out the advancers by a 416 to 336 margin on volume of 126 million shares traded.

UTS Energy shareholders have rejected the C$1.75 cash per share offer tabled by Total E&P Canada. As a result, Total has terminated the offer. UTS ended the session down C$0.06 at C$1.52.

Petro-Canada (NYSE:PCZ), which is in the midst of merger with Suncor (NYSE:SU), reported a first quarter loss of $47 million or $0.10 per share. Petro-Canada ended the day up C$0.07 at C$37.65.

NovaGold Resources (AMEX:NG) tabled a feasibility study for its 50 percent owned Donlin Creek project in Alaska. The study envisions a 53,500 tonne per day operation producing 1.6 million ounces of gold at a cash cost of $394 per ounce over the first five years of a 21 year mine life. At $900 per ounce for gold, the net present value at a 5 per cent discount rate is $1.5-billion with an internal rate of return of 9.4 per cent. NovaGold ended the day up C$0.05 at C$3.29.

Timminco managed to tack on C$0.19 to close at C$1.77 after the solar silicon supplier inked a financing deal with its controlling shareholder, AMG Advanced Metallurgical Group N.V. Under the proposal, AMG will purchase about 7.4 million common shares at a price of C$2.02 per share for a cool C$15 million.

Western Canadian Coal announced that it has secured enough sales contracts for the fiscal year ending March 31, 2010 to continue mining operations at the Wolverine operation and Brule mine in British Columbia. Western added C$0.18 to close at C$0.96.

Romarco Minerals failed to get a lift despite hitting more goodies at its Haile mine project in South Carolina. The latest included 5.1 grams gold per tonne over 54.9 metres. Romarco ended the session down C$0.02 at C$0.53.

The junior board failed to stay above the 1,000 point resistance mark and with the summer doldrums fast approaching trading volumes should start declining. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, April 29th, 2009

Resource Stock Roundup: Wednesday, March 18th, 2009

Doug Casey — Wed, 18 Mar 2009 19:41:28 +0000

Equities continued to march higher during Tuesday’s session on the Canadian Markets as investors smell an economic recovery in the making. For the tale of the tape, the TSX Exchange gained 2.06%, while the TSX Gold Index gave back 1.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.68% with the decliners beating out the advancers by a 358 to 343 margin on pathetic volume of 90 million shares traded.

Merger mania resumed with Lucara Diamond proposing to marry Motapa Diamonds in an all-share deal that would see Motapa getting 0.9055 of a Lucara share for each Motapa share. The move would consolidate the advanced Mothae project in Lesotho. Lucara ended the day flat at C$0.50, while Motapa added C$0.04 to close at C$0.35.

Shares of Baja Mining jumped C$0.075 to C$0.33 after the company tabled a 12 per cent decrease in capital costs for its Boleo copper-cobalt-zinc-manganese project in Mexico. The new number is $767 million, around $100 million less than the 2008 estimate.

Western Canadian Coal kept the good news rolling by reporting that its Belcourt property in British Columbia hosts 86 million tonnes of proven reserves in two deposits. The potential production profile is four million tonnes per year of metallurgical coal for a 15 year period. Western ended the day up C$0.13 at C$0.57.

Despite signs that the recent rally is running out of gas, investors keep jumping in to buy more of the beaten-down financial stocks. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, March 18th, 2009

Resource Stock Roundup: Wednesday, January 07th, 2009

Doug Casey — Wed, 07 Jan 2009 19:46:09 +0000

It was another upbeat session for the Canadian Markets during Tuesday trading with investors continuing to pick up resource related equities. For the tale of the tape, the TSX Exchange added 2.01%, while the TSX Gold Index finally rallied adding 1.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 4.42% with the advancing issuers beating out the decliners by a 540 to 278 margin on volume of 197 million shares traded.

Eurasian Minerals inked a deal that paves the way for Centerra Gold to earn up to a 70% stake in the Akarca, Samli and Elmali properties in Turkey. The price tag for the first 50% is $5 million in expenditures. Eurasian ended the day up C$0.25 at C$1.17, while Centerra gained C$0.14 to close at C$4.60.

Shares of Western Canadian Coal dropped C$0.27 to C$0.80 after the company reported that it is planning to reduce operations at its Brule mine and the Wolverine operation in British Columbia.

News of a 406 metre drill intercept running 0.06% MoS at its Falcon project in British Columbia helped shares of Geoinformatics Exploration add C$0.05 to C$0.20.

Allied Nevada Gold (AMEX:ANV) produced 1,000 ounces of gold and 3,000 ounces of silver in December marking its first production from the run-of-mine, heap leach Hycroft mine in Nevada. Allied ended the day up C$0.19 at C$5.71.

The bounce in the junior market shows no signs of abating anytime soon. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, January 07th, 2009

Resource Stock Roundup: Monday, January 05th, 2009

Doug Casey — Mon, 05 Jan 2009 18:23:25 +0000

The Canadian Markets continued to march off their 2008 bottoms during the first day of trading in 2009. For the tale of the tape, the TSX Exchange added 2.74%, while the TSX Gold Index was the lone loser falling 2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 6.23% with the advancing issuers beating out the decliners by a 615 to 135 margin on volume of 144 million shares traded.

In a reversal of fortunes, Western Canadian Coal will loan up to $36 million to its major shareholder to Cambrian Investment Holdings, a wholly owned subsidiary of Cambrian Mining PLC. Cambrian will use the funds to repay its financing facility with Investec Bank. Western ended the day up C$0.17 at C$0.88.

NovaGold Resources (AMEX:NG) wasted little time in raising much needed capital. The cash-starved company inked a deal to sell just over 46.1 million units at $1.30 each for gross proceeds of $60 million. NovaGold ended the session up C$0.13 at C$1.90.

Meanwhile, New Gold (AMEX:NGD) has placed its Amapari mine in Brazil on temporary care and maintenance due to cost factors. New Gold ended the day at C$1.61 for a C$0.16 loss.

Dynamite Resources added C$0.005 to close at C$0.10 after the junior announced that Blue Note Mining acquired an additional 12.5 million shares of the cash-rich company.

Uranium players generally had a good session with junior JNR Resources adding C$0.155 to C$0.445 and Strathmore Minerals adding C$0.15 to close at C$0.44.

As expected Friday marked a slow trading day as most investors do not get back to their computer screens until Monday. That said, the buy side interest is encouraging. We will see what Monday trading has in store.

Source: Resource Stock Roundup: Monday, January 05th, 2009