copper prices

MOSAID TECHNOLOGIES, $39.22, symbol MSD on Toronto, is now the subject of a takeover bid from Wi-LAN Inc. (symbol WIN on Toronto). The offer is for $38 a share in cash for all of Mosaid’s shares. Mosaid mainly licenses patented computer chip and telecommunications technology, including patents for technology used in smartphones and laptops. Mosaid is now trading at $39.22 a share, or 3.2% above Wi-LAN’s bid. This indicates that investors are anticipating a higher or rival offer....

GLOBAL X COPPER MINERS ETF $19.61 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index. Canadian-based companies make up 48.9% of the fund’s holdings. It also includes companies based in the U.S. (8.7%) and Australia (6.7%), Global X Copper Miners ETF’s MER is 0.65%. Its top 10 holdings are Antofagasta plc at 5.6%, First Quantum Minerals, 5.5%; Inmet Mining, 5.3%; Jiangxi Copper, 5.3%; Ivanhoe Mines, 5.2%; HudBay Minerals, 5.2%; KGHM Polska Miedz, 5.1%; Freeport Copper, 5.1%; Grupo Mexico, 5.1%; Kazakhmys plc, 5.1%; Oz Minerals, 5.0%....

Prices of copper and many copper stocks have moved down lately, along with stock markets. That’s because of investor concerns about the global economic recovery, ongoing European debt problems and continued weakness in U.S. housing markets. In addition, the March earthquake/tsunami/nuclear disaster in Japan crippled many of that country’s factories. These facilities are now resuming production, but Japanese consumption of metals, including copper, will need more time to return to pre-disaster levels. (You can get our latest outlook on copper prices—and our top picks in copper stocks—ABSOLUTELY FREE in our new report, “Copper Mining: How to Choose the Best Copper Stocks and ETFs to Profit from the Reconstruction of Japan.” Click here to download your copy today.)...

Prices of many commodities have moved down from their recent peaks on concerns about the global economic recovery. Rather than selling, the best way to cut your risk in the volatile resource sector is to stick with well-established mining companies with high-quality reserves like Newmont, Alcoa and BHP. As well, these firms mainly operate in politically stable areas, like North America and Australia. NEWMONT MINING CORP. $54 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.7 million; Market cap: $26.7 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.5%; TSINetwork Rating: Average; www.newmont.com) gets 85% of its revenue from its gold mines in the U.S., Canada, Mexico, Australia, New Zealand, Peru, Indonesia and Ghana. The remaining 15% comes from copper, silver, zinc and other metals....

Donner Metals, $0.28, symbol DON on Toronto (Shares outstanding: 114.3 million; Market cap: $33.9 million; www.donnermetals.com), is exploring for base and precious metals in Quebec. The company is mainly focused on is its partnership with Xstrata Canada to develop the Bracemac-McLeod zinc/copper deposit in Quebec’s Abitibi region. Donner has a 35% interest in this property. Xstrata owns the remaining 65%. The partners completed a positive feasibility study on the project in September 2010, and now plan to build a mine that would start up in 2013. The mine will cost $158 million (Donner’s share is $55 million) and is expected to produce 80,000 tonnes of zinc and 10,000 tonnes of copper annually year. The ore could be processed at Xtrata’s Matagami mill, which is only about six kilometres away. Donner needs zinc and copper prices to remain steady or move higher to support its mine. But the company’s upcoming production and the cash flow from the mine give it speculative appeal....

Remy International, $27, symbol RMYI on the U.S. over-the-counter market (Shares outstanding: 31.5 million; Market cap: $850.5 million; www.remyinc.com), makes and distributes starters and alternators for cars and trucks, trains, and gasoline-electric hybrid motors. Remy Delco was a division of General Motors until 1994, when a group of private investors bought the company. In 2004, the company changed its name to Remy International. In the three months ended March 31, 2011, Remy’s revenue rose 17.7%, to $306.4 million from $260.4 million a year earlier. Earnings per share jumped to $0.70 from $0.27. Cold winter weather pushed up sales of starters for commercial vehicles, and certain customers replenished their inventories. As well, Remy uses copper to make its products, and it benefited from hedging contracts that helped protect it from rising copper prices....

Kiska Metals, $0.90, symbol KSK on Toronto (Shares outstanding: 79.5 million; Market cap: $71.6 million; www.kiskametals.com), is developing its Whistler project in Alaska. So far, drilling has outlined a deposit containing 3.13 million ounces of gold, 13.24 million ounces of silver and 769 million pounds of copper. Kiska recently raised $17.3 million in a share and warrant issue, so it has the funds to continue its exploration. Even though the company shows promise, and gold and copper prices are rising, Kiska’s shares have dropped from a high of $1.74 in November 2010 to today’s price. In part, that could be because Northern Dynasty Minerals, symbol NDM on Toronto, is having trouble getting permits for its Pebble project, also in Alaska. Kiska will likely face similar problems, as it aims to build a mine at Whistler....

PLEASE NOTE: Our next Hotline will go out on Friday, April 15, 2011. TECK RESOURCES LTD., $55.06, Toronto symbol TCK.B, rose 8% this week after the company reached a new deal with the union at its Elkview metallurgical coal mine in B.C. The deal should end a two-month strike. Elkview is the second-largest of Teck’s six coal mines in B.C., so settling this dispute will help the company take advantage of rising demand for its coal by steelmakers in Asia. As well, the company continues to benefit from higher copper prices. It should also see higher demand for its coal and zinc as Japan rebuilds following last month’s earthquake and tsunami....

Quadra FNX Mining, $14.77, symbol QUX on Toronto (Shares outstanding: 188.9 million; Market cap: $2.8 billion, www.quadrafnx.com), merged with FNX Mining in May 2010. The combined company now operates five mines in Canada, Chile and the U.S. Quadra FNX also owns the Sierra Gorda copper/molybdenum development project in Chile, and the Malmbjerg molybdenum-development project in Greenland. In the three months ended December 31, 2010, Quadra FNX’s revenue rose 88.6%, to $332.0 million from $176.0 million. Cash flow rose 46.1%, to $0.76 a share from $0.52 a share. Higher copper prices and the merger with FNX Mining pushed up results....

Japan’s reconstruction could prompt a further rise in copper prices. This new FREE report shows you how you can profit with less risk. Copper continues to attract a lot of investor attention. That’s because copper prices recently hit an all-time high of $4.62 U.S. a pound. That’s up sharply from a low of $1.25 U.S. in late 2008. Copper prices fell to around $4.10 U.S. a pound in the wake of the Japanese earthquake and tsunami, but have moved up since then. The dip in copper prices mainly reflects investor fears that copper demand will drop because the disaster has slowed Japanese industrial production. But that’s just temporary. As the reconstruction of Japan gets underway, the need for wiring, piping, and other copper-based products will be great. That could prompt a further rise in copper prices....