Comments: Update from a couple of days ago. I think CUP is getting ready to break its downtrend. I'm excited about the prospects for this stock. Keep in mind that they have 2 pieces of good news in the pipeline--the announcement of reaplcements to the departing CFO and CEOs. Any news that helps to clear up that uncertainty surrounding the leadership of the company will be beneficial for CUP and if it comes during a time of rising Copper prices which look like they may be ready to reverse their recent downtrend, would be tremendously benefial to CUP. I'm excited about the prospects for CUP.
Comments: USGL hasn't significantly come off its lows yet but I think it might be getting ready to make some kind of decent move soon. This stock has some catching up to do and there is still the issue of consolidating the Cortez trend in Nevada. There hasn't been much news about that recently, but if that whole thing gets started again, USGL could enjoy a decent pop--though there could definitely be some jittery trading prior to the completion of any merger, considering the first merger attempt had to be aborted which marked the top for USGL followed by an ugly reversal.
Comments: Most larger cap gold companies announcing mergers have initially sold down, traded sideways for a while, then rallied after the completion of the merger. GG and IAG are good examples of that kind of action. That's why I'm putting KGC on my Watch List. It's scheduled to close its $3.1 billion merger with Bema Gold (BGO) in late January. The deal requires approval by 2/3s of the shareholders of Bema, which vote will take place in early January. The deal will also involve the spin off of certain exploration assets. I'll be looking to build a position in KGC in mid to late January.
Side Note: KGC's investor relations didn't respond to my question about the merger. I guess they're busy working out the details fo the deal...
Terms of the Transaction: [http://kinross.com/news/1162006-1.pdf]
Comments: Royal Gold (RGLD) recently announced their first significant deal in ages. On October 26, 2006, RGLD announced an agreement to purchase a sliding scale net smelter return (NSR) royalty from Nevada Star Resources Corp., on the Gold Hill deposit, increasing RGLD's already substantial exposure to Nevada. The payment will be $3.3 million for a royalty with a maximum payout of $10 million. The Gold Hill deposit is controlled by a joint venture between Barrick and Kinross Gold.
Early in October, RGLD CEO spoke about his days as a miner, recounting that there is a "tremendous amount of romance being at a mine site" in an interview with the Denver Post... Hmmm... Related Article: [http://www.denverpost.com/ci_4494031?source=rss]
Side Note: RGLD's investor relations has never responded to any of my e-mailed queries. I guess that's the other side of only having 13 empoyees. Not enough people to answer e-mails from investors...
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