₪ David Pescod's Late Edition May 11, 2006
NATURAL GAS
EUROZINC MINING (T-EZM) $3.19 +0.29
SILVER
ZINC
The chart on EuroZinc looks like that of many of the better
junior mines these days, particularly since EuroZinc is already
in production. And while it is called EuroZinc, it’s mainly a copper
producer…..at least today.
Yesterday, a few people were a little surprised to be reminded
that EuroZinc had pre-sold some of its production at
as little as $1.62 copper, which showed up with less than expected
quarterly financial results—mainly because of that
number.
Meanwhile, we look at the prices for commodities such as
copper, silver, zinc and gold over the last while, and once
again we believe that nothing ever goes straight up and that
we are “WAY” do for a correction.
We continue to trim some of our junior mining holdings,
expecting that sooner or later the correction does come and
the higher we go up without a correction, the worse it could
be……
Having said that, the analysts still aren’t afraid. On EuronZinc,
TD boosted its target to $3.50 from $3.00 and Paradigm
decided now that it has run this far, that they would move their
rating on this stock to a buy from a hold.
Meanwhile, look at the incredible volume! All of a sudden,
everyone has to have a commodity stock….is that what’s happening?
Notice our comment on the silver chart and notice
Jim Letourneau's comment on natural gas. Letourneau is
looking to get into the one sector that has decent commodity
prices—natural gas. As we trim our mining holdings, we pick
up a couple of high-profile, high-risk, high-reward oil & gas
plays.
WATCH RESOURCES (V-WR) $0.56 +0.07
Way back at around $0.20 to $0.22, Watch Resources wasn’t
much, a couple high-profile plays which previous management
hadn’t worked out, but Jim Welykochy of Genuity
Capital suggested that with new management and some
interesting assets…..it was time to get on board.
We have been following and mentioning the stock here a
couple of times and Jim reiterated it as his top pick at Joe
Martin’s recent Resource Conference in Calgary, when he
was on a panel.
Today, it looks like Watch has won one of the land parcels
they were after in the Fishing Lake area, which Welykochy
tells us is conducive to the growth of the company.
Either way people are starting to pay attention and we
would be very happy if we hit his target for Christmas…..
very happy!
EVERTON RESOURCES (V-EVR) $1.34 -0.07
Just because we mentioned that we are selling some of our
junior mining explorers, because we are expecting some commodity
prices to correct, it doesn’t mean that we are ignoring
the sector. If you are not ignoring the sector you can’t be ignoring
Everton Resources, which has been on quite a run of late
mainly because of their huge chunk of land right beside where
Virginia Gold Mines was so successful. President Andre Audet
credits some good public relations with the stock performance
suggesting that they got quite a crowd at the Calgary Resource
Conference and he was on ROB TV yesterday, which
also helped attract even more attention. He does suggest that
news from their drilling on their property in the Dominican next
week could attract a lot of attention and he says that with the
$1.4 billion that Barrick is spending to put their Tres Bocas
Prospect, Loma El Mate project into production in the Dominican
– that Island should be creating interest for more than just
tourism. He also points to Globestar starting production there
shortly and needless to say, if EVR’s results are good it should
attract attention……(If he had to make a stock pick—Globestar,
GMI is it…….)
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