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 (1959)	1/2/2007 11:41:02 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

It will be a resource stock picker’s market in 2007 Geoff Candy '01-JAN-07 18:00' JOHANNESBURG (Mineweb.com) --Very few people thought the market would rise another 40 odd percent in 2006, even fewer thought resources would put in such a good showing again, but will we see another year of such stellar returns? According to Peter Major, Senior Fund Manager and Mining Analyst with South Africa’s Cadiz Group, 2007 is definitely going to be a stock picker’s market. “For the last three years you didn’t have to be a stock picker, you would have done the best just putting your money into the index,” he says in relation to investment on the Johannesburg Stock Exchange, “but I cannot see that continuing.” “I am at the point now where I don’t see things falling,” he adds, “but I think guys are going to battle to get 15%. They will get 10%, the world is still too liquid to not to do 10%, but 15% will be a struggle.” Looking at resources, a sector for which Major has always had an affinity (he is himself a mining engineer – from the Montana School of Mines - with experience in North American and South African mining), he says, in relative terms, it is roughly where it was in April 2006. Overall the resources sector is flat but the other sectors of the market have been rising for the last few months and so relatively speaking resources are down. Asked where he sees value in the sector in 2007, he says it is something one has to do on a stock by stock basis. But, he adds, generally stocks have been discounting a decline in metals prices. “The question is to determine, how much of a decline is being discounted and how much is really going to happen,” he says. Major believes that gold still has a little bit of upward momentum left. “It is oscillating at the moment and might fall 2 or 3%, but it has a better chance of going up a bit,” he says. In terms of the platinum group metals (platinum, palladium and rhodium), Major says the prices of those stocks are discounting South Africa bringing on quite a lot of capacity throughout 2007 which is part of the reason why the prices have been falling for the last while. “At best the prices are going to go flat from here,” he says. Looking at base metals and the counters that produce them, Major believes the market has seen the highs. He adds that many of these metals were at crazy highs and so will drift down somewhat and then go flat. But, he adds, some like tin, nickel and cobalt have only just hit their highs in the last few weeks and so it is going to take some time before the excess production comes on stream and the prices begin to moderate. It is in the bulk metals and minerals category, with products like iron ore and potash, that Major believes there is still good money to be made. “We may have seen higher prices come through,” he says, “but there is little chance of them coming down any time soon which almost guarantees high profits in this space for the next eight or nine months.” He adds as a final point that judging by the performance of the various indices in 2006, however, all of which performed roughly within about 5% of each other, it will be difficult to pick a sector that will do better than the rest this year. Mineweb always carries details of at least 20 independently written top mining, mining finance, metals and mining sector analysis articles on its homepage as well as a fast news feed to keep you right up to date with what is going on in the mining and metals sectors worldwide. These are continuously updated through the day. Click here to go to Mineweb's home page and access the latest news and comments on developments in mining and metals worldwide. mineweb.net

To: ms.smartest.person who wrote (1959)	1/3/2007 11:09:17 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition January 3, 2007 SELKIRK METALS (V-SLK) $1.13 -0.02 COASTPORT CAPITAL (V-CPP) $1.07 n/c Today oil gets clobbered almost $3.00 and we learn once again that there has been no winter through much of North America….. Bloomberg reports that the corridor between Washington and Boston, for the next few days, will have weather between 15 and 25 degrees warmer then the average. You don’t need natural gas, heating oil or other products in this kind of weather! Also today gold stumbles and copper has one of its biggest drops ever! One prediction we can make and feel safe with for this coming year is that commodities will be volatile. Today, we look to David Coffin, who was one of the top stock pickers of last year and who is also co-editor with brother Eric of the Hard Rock Analyst, for his picks in the coming year. These are his two top picks for the year and some comments: Selkirk Metals (SLK-V) established itself as a zinc exploration and hedge stock with its work last year at the Ruddock Creek project in British Columbia. It is a little early to call the Ruddock Creek project a slam dunk, but at this point it does look like a free throw away from confirming it has a mineable zinc-lead deposit in a favourable location. There is every indication that the project hosts 10 million tonnes in the 10% zinc range, and there could be considerably more. This is a Sedimentary Exhalative type deposit, the type that can grow large and is favoured by zinc producers. Right now there is more speculative upside in pending drill results from the 2006 season, and the company completed a $10 mm placement late last year that lets it move to an underground program that will let it finish drilling of the main and possibly one or two other zones from underground. In a market hungry for zinc stories, it is positioned below the current value of its main project and still has considerable upside from continued exploration success along a 5 km long trend of showings and anomalies marking the prospective horizon. Coastport Capital (CPP-V) is a more speculative situation, but also one with an established copper-zinc-gold system currently being tested, plus a big picture gold speculation that is being targeted for testing that will likely start in Q2. Both projects are in Ecuador. La Plata project currently being drilled has about 800,000 tonnes of highgrade material currently outlined, and five new target areas of similar scale along a 5 km trend that are now seeing initial testing. Taking the project to about the 2 million tonne level should be all that is needed to allow a small-mine start up, and this program could indicate that potential with a handful of good intersections. The big picture Shyri gold project is adjacent to Iamgold’s Quimsacocha discovery that has, so far, a 3.5 million oz resource. The target I visited at Shyri is very much a look alike for the Quimsacocha alteration system, is of the same scale in the same rocks, and has never been tested. Coastport has two other similar targets still being outlined, plus a separate area of high-grade veins that have delivered results like 3.4 m of 53.4 g/t gold & 641 g/t silver, and 0.9 m of 229.2 g/t gold & 384 g/t silver, from initial surface sampling. Simply put, this is the best gold speculation I have looked at in a number of years, in an area that is just now evolving into a major gold mining region. Ecuador elected a left leaning President who starts in office in the middle of this month. I made a 10 day trip to the country after the election. My sense is that in spite of leanings this man is a pragmatist. He has stated since being elected that foreign investment is important for the country and he will do nothing to harm it, and there has been no indication whatsoever that the government plans to change mining rules that were enacted in 2001 and are considered modern and balanced to allow for development. In a nutshell, I think the market will settle in comfortably. Should politics weaken the market for Coastport or other stocks we like in Ecuador, I would consider this simply a buying opportunity. About the only good news today for commodities was the announcement by Oilexco on their Shelley project. The news looks great and Fred Kozak of Haywood Securities raises his target from $12.00 to $13.00. For a copy of the report email Debbie at Debbie_lewis@canaccord.com. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com