Wednesday, October 8, 2008

Trading Post (Stop it moving I wanna get off edition)


Profits taken on SLV and GLD. I wanted more for SLV (was aiming for a buck or so higher) but there's no reason to ignore a ST win these crazy days. Meanwhile..........

FCX up 2.6% and PCU down 5.3%. FCX is getting love from its gold revenue unit, and PCU is simply hurting. Copper at $2.45 is the reason, and it looks like there's more downside to come.

Breakwater (BWR.to) is now at $0.13. I feared the worst when Zn broke 75c to the downside, and it's coming to pass. Other heavily zinc and lead exposed producers in exactly the same boat, of course.

Vena Resources (VEM.to) at 20.5c. This is "baby with bathwater" stuff as Larry the Liquidator could buy this, split it into its various parts and make oodles in an asset garage sale. VEM has gold, silver, uranium, copper, coal. When the music stops, keep it on your list of possibles. It's just one of hundreds of small juniors in the same boat, but as I know the people at the company and know they're smart, honest and good at what they do, I can't help feeling for them. Happily they have cash to ride out the storm, which is more than can be said for many.

Dynasty (DMM.to) down 20% at $1.61. The news on Ecuador's Mining Chamber I posted yesterday has been a real downer for DMM. The hope/plan at the company is/was to begin production 90 days after the stop work order was lifted and the mining law published. Cesar Espinoza's words yesterday took a lot of wind out of sails at the worst possible macro moment. Remember this company has $0.73 in cash per share, and more than enough at bank to wait out the storm and then fund the final part of capex without needing a cent from any bank anywhere. And then they start mining gold. So if you have patience and let Ecuador get their apparently fair law on the books, this one is a stupidly cheap price right now.

As always, DYODD, dude.