MINING FINANCE / INVESTMENTMETALS DEMAND MAY HAVE HIT FLOOR

For U.S. metals and mining, gold is all that glitters - S&P

Although the financial ratios of U.S. metals and mining companies will continue to weaken, Standard & Poor's expect credit trends to slowly start to improve in the sector during the next several quarters.

Author: Dorothy Kosich
Posted:  Thursday , 02 Jul 2009

RENO, NV -

Gold continues to be a rare bright spot for U.S. metals and mining companies, while steel continues to be of concern to the credit analysts at Standard & Poor's.

Meanwhile, S&P's outlook for the U.S. metals and mining sector remains negative, "given the poor operating environment and deteriorating credit quality."

In an industry report card published Wednesday, Credit Analysts Marie Shmaruk, Michael Scerbo, Maurice Austin and Sherwin Bradford estimated that S&P has downgraded 20 domestic mining and metals companies since the beginning of this year.
Gold stocks do well

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Dorothy Kosich; For U.S. metals and mining, gold is all that glitters – S&P

Gold stocks can add returns with no extra volatility

The judicious use of gold stocks as part of an investment portfolio can add to returns without significantly adding to risk.

Frank Holmes
Tuesday , 23 Jun 2009

SAN ANTONIO, (U.S. Global Investors) -

Gold stocks are among the most volatile asset classes, but old and new research shows that their judicious use can enhance investor returns without adding portfolio risk

Click for full article on investing in gold stocks.

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Frank Holmes; Gold stocks can add returns with no extra volatility

Junior gold stocks: have wings, will fly

A glance at some of the junior gold names in the space of the world's top 100 most in-demand listed gold stocks.

Author: Barry Sergeant
Posted:  Tuesday , 16 Jun 2009

JOHANNESBURG -

A selection of the world's 100 most in-demand gold stocks shows up an aggregate market value of USD 151bn worth of market value (capitalisation), and, measured on an average weighted basis, stocks that are trading a modest 18.5% below 12-months highs.

Click here to read article on in-demand gold stocks.

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Mineweb; Junior gold stocks: have wings, will fly

By: Lorimer Wilson

Every investor has a wide array of asset classes and investment vehicles to consider – stocks; bonds; commodities; funds; options; LEAPS; etc. and the relatively unknown and misunderstood category called ‘warrants’. This article discusses the reasons behind the performance to date of commodity related company stocks (i.e. gold, silver and other metal miners and oil and gas operators) and their associated warrants vis-à-vis the aforementioned categories.

Week after week throughout 2009 the warrants of natural resource companies in North America have outperformed their associated common stock, the various stock market indices and gold bullion and silver even more. It begs the question: What’s going on here? There are three over-riding reasons as discussed below.

Click here to read Why are Gold Mining Stocks going up?

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Lorimer Wilson; Why Gold Mining Stocks and Warrants are Up so Dramatically

A glance at 100 or so of the world's most demanded mining stocks, and the more powerful dominating prevailing themes.

Author: Barry Sergeant
Posted:  Tuesday , 09 Jun 2009

JOHANNESBURG  -

Despite the fierce selling down of listed gold stocks since 3 June, when hundreds of gold names traded at multi month highs, this global subsector remains one of the firm favourites among most highly demanded across all mining sectors.

Click to read article on gold stocks.

Related Blogs

• Related Blogs on MineWeb; What a difference a week, or two, makes but gold still a firm favourite

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MineWeb; What a difference a week, or two, makes but gold still a firm favourite

There is a correlation between U.S. deficit spending and gold outperforming the S&P 500. This coupled with the Chinese appetite for gold should keep gold and gold stocks attractive to the broader market.

Author: Frank Holmes

Click to read full article on Full Arright time to buy gold mining stocks?

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Why the time could be right for gold mining stocks

Endeavour Mining Capital
(EDV.TSXV) (866-801-0779)
www.endeavourminingcapital.com

When I updated you on Endeavour a couple of months ago, I noted that the company "offered excellent value in the near-term and exceptional growth potential over time." The stock is up 24% since then, but still appears dramatically undervalued.

How undervalued? Consider its latest earnings report, for the quarter ended November 30. The company reported net income of US$26.9 million, or US$1.54 per share (which is approximately C$2.00 per share). Yes, that's for one quarter.

This stunning result compares with a net loss of US$0.26 per share (or approximately C$0.34 per share) for the same quarter in 2002. The latest results reflect total investment income of US$32.5 million for the quarter, with operating expenses of US$5.6 million, leading to an operating margin of 83% during the period. The earnings are comprised of US$5.9 million of realized gains, and unrealized gains of US$26.6 million during the quarter.

Given the success of its investments, and a recent C$25 million equity financing, Endeavour's CEO, Neil Woodyer, notes that the company's investment capital base now stands at US$87.0 million, or approximately C$4.90 per share, "expanding our ability to make additional investments and commitments."

As I've said before, the beauty of Endeavour is that it allows individual investors to stand alongside some of the industry's most accomplished and powerful institutional investors - to "get in the room" where many of today's biggest resource deals are being put together.

The primary roadblock for Endeavour has been the fact that its earnings come primarily from appreciation in its shareholdings, which result from the mergers, acquisitions and early-stage financings it participates in. While this "deal flow" is a business that the company's principals are well versed in, some analysts are hesitant to project current results far into the future.

In short, the market tends to treat each quarter's numbers, as remarkable as they may be, as extraordinary results, insisting that Endeavour prove it can do it again.

The good news: Endeavour has proven it can do it again...and again...and again. In fact, the company's trailing 12-month earnings stand at C$3.81 per share.

With a P/E of 1.12, it may not seem like the market is catching on to Endeavour's potential. But believe me, it is. And, with the deals this powerhouse has in the pipeline right now, your chance to get on board could soon pass by.

Endeavour Mining Capital
Recent Share Price: ...........................................................C$4.40
Stop Loss: ..........................................................................C$3.65
Shares Outstanding: ..................................................23.1 million
Market Cap:........................................................C$101.6 million
Shares Outstanding
Fully Diluted: ............................................................27.7 million
Market Cap
Fully Diluted: .....................................................C$121.9 million

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Lundin says Endeavour will not trade at 1.2X earnings for long