AUR RESOURCES $21.60 (Toronto symbol AUR; SI Rating: Speculative) (416-362-2614; www.aurresources.com; Shares outstanding: 98.4 million; Market cap: $2.1 billion) mines mainly copper. It operates the open-pit Quebrada Blanca and Andacollo copper mines in northern Chile.
Aur’s cash flow rose 48.5% in the three months ended December 31, 2006, to $107.4 million or $1.10 a share, from $72.3 million or $0.76 a …read more »
BREAKWATER RESOURCES $1.82 (Toronto symbol BWR; SI Rating: Speculative) (416-363-4798; www.breakwater.ca; Shares outstanding: 385.8 million; Market cap: $702.2 million) reports 175.8% higher revenues in the three months ended December 31, 2006, to $158.3 million from $57.4 million a year earlier.
The increase came from higher prices for zinc, plus a 21% increase in production. Cash flow jumped to $0.12 a share …read more »
GABRIEL RESOURCES $4.88 (Toronto symbol GBU; SI Rating: Speculative) (416- 955-9200; www.gabrielresources.com; Shares outstanding: 210.9 million; Market cap: $1.0 billion) reached a new high of $5.45 recently after it received the official list of questions from the Romanian Ministry of Environment and Water Management relating to its proposed Rosia Montana gold project. In keeping with the process prescribed by Romanian …read more »
We’ve mostly avoided resource income trusts, due to their generally low investment quality. But we made an exception for Pengrowth (Toronto symbol PGF.UN), which is the sole oil & gas trust we recommend in The Successful Investor.
We made a second exception for Pengrowth by recommending it on two of our Portfolios: our Aggressive Growth Portfolio and our Portfolio for Income-seeking …read more »
ALCAN INC. $60 (Toronto symbol AL; Conservative Growth Portfolio, Resources sector; Shares outstanding: 366.7 million; Market cap: $22.0 billion; SI Rating: Average) is the world’s third-largest producer of aluminum, after U.S.-based Alcoa Inc. and Rusal, a Russian company. It also makes aluminum products for the aerospace and automotive industries.
In the three months ended December 31, 2006, Alcan earned $1.09 a …read more »
NEWMONT MINING $45 (New York symbol NEM; SI Rating: Average) is the largest gold producer in the world with mines on five continents. North America and Australia account for about 70% of its annual production. It also mines copper and other base metals. The company expects to produce around 7 million ounces of gold this year.
Newmont earned $236 million in …read more »
CAMECO CORP. $45.16 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 352.3 million; Market cap: $15.9 billion) has started work to restore the underground workings at its flooded Cigar Lake mine in Saskatchewan. The company is now drilling holes down to the access tunnel at Cigar Lake, and plans to pump concrete through the drill holes into …read more »
ARIAN SILVER $0.37 (Toronto symbol AGQ; SI Rating: Start up) (1-800-917-4102; www.ariansilver.com; Shares outstanding: 100.7 million; Market cap: $37.3 million) is active in silver exploration and development in Mexico. The company is headquartered in the UK.
Arian’s current focus is on the Calicanto and San Celso projects in Zacatecas state, the recently acquired Tepal project in Michoacan State and the San …read more »
EUROPEAN GOLDFIELDS $5.09 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 114.8 million; Market cap: $584.3 million) owns mineral properties in Greece and Romania. The company is headquartered in the UK.
European Goldfields holds a 65% interest in Hellas Gold, which owns three gold and base metal deposits in Northern Greece. The deposits are the Stratoni …read more »
FORDING CANADIAN COAL TRUST $24.06 (Toronto symbol FDG.UN; SI Rating: Average) holds a 60% interest in Elk Valley Coal in B.C., the world’s second-largest supplier of metallurgical coal, a key ingredient in steelmaking. Elk Valley supplies approximately 21% of the global market.
Fording has vast reserves of coal. Mining could continue at current rates for 25 years; with further development, its …read more »
Mining stocks are investments in companies that produce or explore for minerals. They are affected by commodity prices in addition to their own business risks. While sometimes risky, they can also be strong performers when commodity prices are up. However, due to the volatility of these stocks, Pat McKeough recommends that they only form a modest part of a balanced portfolio.
Our free report helps you zero in on the mining stocks (including uranium stocks, metal stocks and junior mines) that are in the best position to take advantage of rising resource demand. Mining Stocks: How to Spot the Best Uranium Stocks, Metal Stocks and Junior Mines
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