Mining Stocks for Feb 18th
The TSX Venture home to many of Canada’s junior mining companies managed to climb above the 1000 level on the index. I believe this will be a year on the TSX-V where individual investors have to be very selective. The solid companies will go be up 20 -150% but many of the junior miners will go bankrupt. This will be a much needed cleansing and capital will flow to the higher quality names. For an excellent read on How to invest in junior mining stocks check out Mining Stocks Investor Guide.
We saw a couple of the larger gold companies reports earnings today Osisko and Yamana Gold.
Osisko (OSK.T) who has received a takeover bid from Goldcorp was up 6 pennies on the day to close at $7.02. Osisko has stated that many shareholders feel the bid is to low. In the fourth quarter Osisko manged to squeak out net earnings of $10.5 million (2 cent per share.) In January the Malartic mine hit record production of 50,111 ounces which is terrific news.
Yamana (YRI.T) reported adjusted earnings per share of $36.7 million or 5 cents per share. Yamana year over year production was down slighty and costs were higher resulting in a less profitable year. Yamana does have a solid balance sheet and has announced a quarterly dividend of .0375 cents per share. Management at Yamana is focused on cash flow for the year 2014.
Probe Mines (PRB.V) hit an all time high today of $3.40 and closed at $3.27. Another excellent high grade drill hole from infill drilling was released this morning. Ice drilling is under way on the project and Probe is well funded for 2014 exploration. Of note here is major Agnico-Eagle owns a stake in Probe. In my view Probe is leading takeover candidate and you may not see them around in the next 12 months.