Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Crazy Fools LightHouse -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1116)	5/25/2006 9:44:17 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

It's no bubble, just look at rare metals By Ambrose Evans-Pritchard May 24, 2006 THE rare metal rhodium has surged to $US6275 an ounce, leading a rally in niche commodities that goes beyond the climb in gold, silver, or copper markets. Rhodium's price has risen more than tenfold since early 2004, driven by demand for catalysts, LCD screens and missile technology. Unlike copper and other base metals, it is not traded on any exchange and thus is not subject to speculative plays by hedge funds on futures markets. Barclays Capital yesterday cited the roaring bull market for such niche metals as proof that real demand, fuelled by Asia's industrial revolutions, is driving the global commodities boom. "When market commentators use the simplistic argument that industrial metals are being driven by investment bubbles, they would do well to look at price performance in some of the non-exchange traded minor metals markets," said the bank's commodity analyst, Kevin Norrish. "These metals cannot be invested in, but prices are being driven higher by the same structural changes in fundamental demand as copper, increasingly classed as a speculative bubble." Tungsten, used in drills and light bulbs, is up 330 per cent; while iridium, used for compasses and pen tips, has soared 328 per cent. Molybdenum is up eightfold; ruthenium fivefold; and cadmium and antimony have more than tripled. The US fund giant Pimco also disputed claims that a dotcom-style bubble had developed in commodities, insisting hard demand was driving the boom. "To have a speculative bubble, you need to lose all concept of an objective measure of value. That doesn't hold for commodities," said Bob Greer, vice-president in charge of commodities. He doubted that the amount of money pension funds and big institutions were pouring into commodity tracker funds - thought to be $US100-$US200 billion ($133-$266 billion) - was causing prices to lose touch with economic reality. "I do not believe that index investors are driving prices. Pimco is the largest manager of commodity index mandates in the world. "Yet Pimco does not own one barrel of crude oil, one bushel of soybeans, one ounce of gold. We do not consume any of those commodities." However, economists warn that a sharp slowdown in the US housing market and a looming credit crunch imposed by the Chinese authorities could remove two main props of the commodity rally. China is a big importer of rhodium, partly for use in catalysts to convert crude oil into petrol at its new high-tech refineries. It is also used as a fission product absorber in nuclear energy. Refiner Johnson Matthey said demand for the metal had grown at more than twice the rate of supply in 2005. The Telegraph, London smh.com.au

To: ms.smartest.person who wrote (1116)	5/26/2006 7:14:47 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 NO LATE EDITION - DAVE IS in EUROPE FOR THREE-WEEK VACATION.

To: ms.smartest.person who wrote (1116)	5/31/2006 8:07:07 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition May 31, 2006 NOVA URANIUM (V-NUC) $1.85 -0.01 PACIFICA RESOURCES (V-PAX) $0.82 +0.02 We had figured that a correction was coming, but when they do they are always unpleasant and the degree of the correction is sometimes stomach turning, especially when you own the stocks concerned... Nova Uranium and Pacifica Resources have both participated in the recent correction in the mining exploration sector in a big way—both dropping more than 50% in the last few weeks from their high for the year. Pacifica has a potentially enormous deposit drilled up significantly during past bull markets, although not currently compliant under new mining regulations. It does suffer, though, from the same concerns about northern locations and short seasons. The company has just announced the start of an aggressive eight drill 25,000 meter drilling program that should attract attention, or in this new market will people pay attention? At the recent Metal Bulletin’s Zinc Conference, Anders Haker of Lundin Mining (LUN) pointed out that zinc demand in India should rise from 0.5 kilograms per person, closer to the demands of south Korea, which is 8.8 kilograms per person or the United States, which is 3.5. Haker suspects that because of the demand in places like India and China, world demand could hit 14.5 million tons yearly versus it’s current 10.5 million today and where will they find that extra zinc….? To us, a big relatively safe play in Canada might bear watching. Nova Uranium, hurting from the market correction is also ailing from drilling on the Nova B zone on its Mont Laurier project in Quebec. For some reason the company decided to drill their Nova B target before Nova A, which is the area that had been drilled 30 years ago and that had come up with some fairly interesting results, but once again not compliant with today’s market regulations. Nova B yielded very little of the good stuff and now, in a much less pleasant market, Nova A must come up with something for the company to regain credibility. It’s been that ugly! Eric Coffin of the Hard Rock Analyst who has been on this story since it was under $0.90, says that there is probably nothing new with the company at this point, although they hope to feature it in the Hard Rock Analyst this coming Friday. Results should be coming out shortly on the Nova A zone, and the question again is will they be good enough? And, if they do will the market be there to pay attention to it? CAPITOL ENERGY RES. (V-CPX) $4.99 -0.01 The chart to the right might tell you that very little is happening with Capitol Energy – after all the chart looks almost as flat as a pancake for much of the last year. Not quite right! Not too long ago, they made one of the biggestsweet old oil discoveries in the last 20 years in Alberta at Dixonville. It’s helped them increase their production fairly dramatically to roughly 2,500 barrels a day, but the engine driving the production at Dixonville is not what it should be and hence they are looking at something that might remedy that problem—a waterflood. That is something that is usually only a big company looks at, with its demand for plenty of capital and lots of expertise, plus time. They are trying some small scale work on the waterflood for much of the second half of this year, and if it works expect a much bigger project next year. For punters, this is a play to start watching, because if this waterflood works the next 12 to 18 months could see multiples of the current stock level. If it works, if not…..well?? For a great look-see at this company and what waterfloods are about, Jim Welykochy of Genuity Capital has done a great report and for copies email Sandra at sandra_wicks@canacord.com. Disclosure: Canaccord has recently participated in a financing for Pacifica Resources. If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com