The market performed in recent weeks in Canada. Financial reports fourth quarter in front of the stage before the Festival holiday Presidents of the United States on Monday and early Winter Olympics 2010 in Vancouver on Friday night. And, once all transactions must be done, the TSX Venture Exchange, home to junior exploration companies than anywhere else in the world, added 2.95 percent, while the TSX Gold Index had tacked on 1.27 percent.
Is not that warm weather in Vancouver, a concern for the Olympics?
Well, it’s good for the spectators, but skiers will return in May with a complaint or two about the quality of the tracks, once things are everywhere. Unrelated to the situation of snow, a participant was 21 years old Luger country of Georgia is dead after a crash during training Friday. Not a good start to the Games, but we remain hopeful that Canada’s financial center for small exploration companies will get some positive global attention over the next two weeks. We will be better able to give an update on week one Olympics, but for the time spend on the resource sector where Teck Resources has officially rebounded from the financial abyss after the presentation of results for stellar the fourth quarter of 2009. Teck earned C $ 411 million, or C $ 0.70 per share, on record turnover of 2.2 billion dollars. For all of 2009, the company once run out of money earned 1.8 billion dollars.
Thus, the takeover of C $ 14 billion for Fording Canadian Coal Trust is beginning to bear fruit?
Well, I would not go that far, but it is clear survival mode is now off the table, and it is certainly true that coal prices have rebounded nicely with all other products. Teck ended the week up C $ 3.67 to C $ 37.87.
On the subject of coal, coal from the West has made a financial profit in the third quarter from C $ 24 million or $ 0.10 per share on sales of C $ 118.7 million. Reduced operating costs have been the driver of the windfall profits. Western finished the week up $ 0.50 to C $ 3.71.
Not fairing so well on the side of pay, but continues to grow strongly in the market has been Fertilizer giant Agrium. The company recorded a fourth quarter profit of U.S. $ 30 million or $ 0.19 per share, against earnings of U.S. $ 124 million or $ 0.79 per share for the same period of 2008. Revenue fell 24 percent on a year over year basis to 1.5 billion dollars. The company did, however, noted that during the fourth quarter the company was the beneficiary of the initial phase of a recovery in the sector of agricultural inputs, and that put investors in a buying mood. Agrium ended the week up C $ 4.50 C $ 67.60.
Meanwhile, Uranium Miner Paladin Energy has filed a $ 400,000 loss in the fourth quarter, compared to a loss of U.S. $ 470.8 million for the same period of 2008. The red ink in 2008 was more than capital expenditure on mine Kayelekera company in Malawi and Langer Heinrich mine in Namibia. This time, Paladin produced 987,310 pounds U3O8 during the fourth quarter compared to £ 673,982 for the same period of 2008. Paladin has ended the week down C $ 0.08 to C $ 3.32.
Back to the scene of coal, Erdene Resource Development got some good news after Xstrata said it will develop in the Donkin coal project in Nova Scotia. Erdene owns 25 percent of the venture, which could produce 2.75 million tonnes of coking coal per year. Erdene ended the week up C $ 0.085 to C $ 0.31.
In the new policy, the Government of British Columbia has declared a ban on all mines, oil and gas extraction and coal gas over an area 1600 kilometers square of the province known as the Flathead Valley. Cline Mining has spent millions of dollars advance its coal project in twisted but it was left open.
As I recall, the main asset Cline is the new Elk coal deposit in Colorado.
This explains why the sudden new Flathead Valley has no stock Cline impact. Cline ended the week up $ 0.12 to C $ 0.55.
In the space of gold, Centamin Egypt came out and said it was on track to meet its 2010 target production of over 200,000 ounces of gold from its flagship Sukari project in Egypt. In the fourth quarter, 1118 ounces of gold were produced from 140,000 tonnes grading 1.11 grams gold per tonne. Reserve open at Sukari now stands at 7.1 million ounces of gold. Centamin ended the week down C $ 0.03 C $ 1.93.
And bonding with gold, struggling Gold Junior Crew has become a major shareholder, according to a new subsidiary of the steel and the Russian mining giant OAO Severstal has acquired more than 335 million shares of the Junior 0, $ 16 per share. The latest purchase gives the Russian entity 19.79 percent of the crew, who holds the gold mining operation in Guinea LEFA, but keeps losing assets elsewhere at a rate of knots. The crew ended the week up C $ 0.08 to C $ 0.215.
Fundraising news, and as we speculated in the past two weeks, Silver Standard Resources has indeed gone to market hat in hand seeking to raise U.S. $ 100 million by issuing 5,882,353 shares U.S. $ 17 each. Silver Standard, which closed at C $ 0.56 C $ 18.68, has had problems accelerating production is Pirquitas silver mine in Argentina.
It was a good week, although for the shareholders of the Gold Coast. Diamond Explorer has unveiled details of a prefeasibility study which showed that the star of the Orion South kimberlite in the host Saskatchewan probable reserves of 279 million tonnes at a diluted weighted average grade of 12.5 carats per hundred tonnes, 35 million carats at a weighted average price of $ 226 per carat for the duration of the mine. The net present value using a discount rate of seven percent is an impressive C $ 1.3 billion. Shore finished the week up C $ 0.07 C $ 0.92
Finally, Silver Wheaton went shopping and chose to purchase all the resources of gold and silver project in Rosemont Augusta Resource in Arizona. The price tag is U.S. $ 230 million and payments of U.S. $ 3.90 per ounce of silver and $ 450 U.S. per ounce of gold shipped during the life of the mine, or the price of market if it is lower. Silver Wheaton finished the week up C $ 0.61 C $ 15.95, while Augusta added C $ 0.45 to close at C $ 2.86
Junior Board of Canada managed to post its second week winner of 2010 thanks to some strong earnings and a rebound in copper prices. We’ll see what the negotiations next week will bring.
source:minesite
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