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January 9, 2007

Strange moves in the gold stocks today, Tues., Jan. 9, 2007, 2:59 PM

While the action in KRY is just cranking in 5th gear at over 10 million shares combined on the AMEX and TSE, the XGD (Toronto ETF) is down -0.1 pct and the GDX (AMEX ETF) is down -0.8 pct.

GLD/IAU is up +0.5 pct and SLV up +1.9 pct, so the metal is stronger today than the shares.

But Yamana (AMEX:AUY) up +4.7 pct, Ivanhoe (NYSE:IVN) up +2.4 pct and Aurelian (TSX:ARU) up +3.0 pct, which is quite different than the majority of them, which are down.

KRY is weak on both AMEX and TSE (-9.2 pct), but the turn-over, I feel, is going to be healthy for the Bulls. The KRY market cap is about US$660 million and the turnover today is likely to be about $33 million (ie, about 5 pct). Along with yesterday's post 3pm turnover, that still represents only about $40 million. So, I am going to be interested to see if the stock price stabilizes at this level. If so, new buyers will come in from the sidelines.

Few of us like to catch a falling knife, as they say.

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Posted by Posted by Bill Cara on January 9, 2007 02:59:50 PM | Category: Goldminer Producers

Discourse

The strength in Yamana (AUY) may be due to its move to the NYSE in a few days.

Divergence comment sure covers SLW action. Looks like opportunity.

Disclosure: Long AUY & SLW.

Posted by: Seamus [TypeKey Profile Page] at January 9, 2007 3:19 PM [link]

hi, bill. looks like midafternoon surge in PMs is abating. not sure about ivn or aru but auy likely benefiting from the ceo being on cramer last night and release of some positive production numbers.

Posted by: mogwai8myball [TypeKey Profile Page] at January 9, 2007 3:21 PM [link]

Mr. Cara

RE: KRY

Disregarding the political concerns, it seems that the critical question is: Does KRY need additional financing to finish their mine in Venezuela. If so where will that financing come from, considering the poiitical risks?

Thanks

Posted by: Bruce [TypeKey Profile Page] at January 9, 2007 4:13 PM [link]

Why would KRY have been so flat most of the day?

Those wanting to bail out perfectly matched to the shorts who were covering? LOL

I too hope KRY will base then recover, in which case I'll hop back onboard.

Posted by: Jock [TypeKey Profile Page] at January 9, 2007 4:17 PM [link]

there is an interview on Bloomberg's site with guy from Argonaftis (who?) stating investors should sell VZ stocks.

Posted by: rayg [TypeKey Profile Page] at January 9, 2007 5:28 PM [link]

Bruce,

I think the company will tell you that financing the mine will be easy to do. If they do have a problem, I'll be ready to take a position. :-)

Actually, I will be meeting the Crystallex CEO Todd Bruce in Nassau Bahamas on April 2 and 3. If any of you wish to join me, I'll help make the arrangements.

Posted by: Bill Cara [TypeKey Profile Page] at January 9, 2007 5:30 PM [link]

Bruce,

Echoing what Bill says, financing should not be a problem. Saw Todd Bruce on ROBTV this afternoon. He mentioned that he met with a number of senior US bankers today around this issue who were not deterred by yesterday's events. Bankers have shown an aptitude to take on increasing risk over the past few years (ie. US housing boom) much more so than the VZ situation, especially considering an economically top quality project like Las Cristinas...

Posted by: sper0032 [TypeKey Profile Page] at January 9, 2007 6:33 PM [link]

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