Feb 18 2009
Capital ‘Pouring’ Into Gold/Uranium Treasury Offerings
A recent article titled ‘Major Investors Piling into Gold’ lists several recent financings. These include:
| Principal Metal | Securities Sold | Proceeds in $millions(Cdn $ unless noted) | |
| Freeport McMoran (NYSE:FCX) | Gold/Copper | Common Shares | U.S.$740 |
| Kinross Gold | Gold | Common Shares | U.S.$360 |
| Newmont Mining (NEM:NYSE) | Gold | Common Shares/Convertible Debt | U.S.$1,700 |
| Sub-total – U.S.$ | U.S.$2,800 | ||
| Converted to Cdn @$0.80 | $3,500 | ||
| Centamin Egypt (CELTF.PK) | Gold | Common Shares | $69 |
| Endeavour Financial (TSX:EDV) | Precious Metals | Common Shares | $100 |
| Exeter Resource Corporation (TSX.V:XRC; NYSE-A:XRA) | Gold | Common Shares | $25 |
| First Uranium Corp. (FURAF.PK) | Uranium | Common Shares | $61 |
| International Tower Hill Mines (TSX.V:ITH) | Gold | Common Shares | $5 |
| Osisko Mining (OSKFF.PK) | Gold | Common Shares | $350 |
| Romaraco Minerals (TSX.V:R) | Gold | Units | $20 |
| Uranium One (SXRAF.PK) | Uranium | Units | $270 |
| Total Cdn$ | $4,400 |
.
The article claims: “a strengthening trend: major investors are piling into gold” suggesting this “is a reflection of the strong gold price amid safe haven demand” from “large value investors increasingly deterred by U.S. Treasury related securities”.
My Comment: As a result of my involvement in the development of StockResearchPortal.com I am in constant contact with Presidents of Canadian Listed Mining and Oil & Gas companies. I have little doubt, based on the antidotal evidence available to me, that in the past few weeks capital has freed up for what are perceived to be good (particularly ‘gold related’) precious metals companies. If the U.S. and world economies continue in the next few months on a downward spiral – and it seems to me that currently is the most likely scenario – I think this is likely to put upward pressure on the share prices of a select group of gold explorers and producers. I think this even more likely if the price of gold continues to increase through 2009.
Read the article by clicking here.
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