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5/1/09

Trading Post (Roundhouse kick edition)


Freeport (FCX) up 5.4% at $44.96 and getting a real kick out of the move in copper. Cu spot has zapped straight back from $1.90 to $2.10 (against my call, it has to be pointed out). Volumes a little under average at FCX, which is also true for the other copper sister PCU, up 2.5% today. Seems like I'm not the only one who has great trouble in buying this copper rally-ette.

Fronteer (FRG) up 7.5% at U$2.57 with the Canadian version now over three loonies. I'm really, really enjoying this rally in FRG, even though it's now off its intraday high. FRG is now a definite third in my trading port holdings and closing in on second because........

...DMM.to down 1.8% at $4.42 and getting no love again. Uff. I got a mail this morning in which reader 'BA' asked

"Just wondering if you know anything of Dynasty’s production progress. I would have thought that the closer to production they got, the higher the stock price would go. Is it possible production reality doesn’t measure up to projections?"

Well, I don't think so. From what I'm told, production is ramping nicely and on schedule. Mining isn't an exact science and there are always teething problems in newly commissioned mines, but overall it all seems very positive out of DMM.to. IMHO the soft share price is more due to the combo of a softening gold price that's taking the shine off the whole sector, plus the way DMM.to is still an under-the-radar company that doesn't play the big pipes'n'whistles promo game. I'm very, very comfortable about holding my posistion in DMM.to and expect the real fireworks to begin as production and revenues numbers come to light. I still see plenty of upside on the compeling fundamental numbers here...just can't tell you when the market will wake up.

Capstone Mining (CS.to) up 7.5% at $2.15 and bouncing straight back from the lull we saw when it announced its financing (just before the copper swoon). CS.to has really caught the attention of the market now as the up'n'coming copper player. Now who was it who said, "All in all Capstone looks like a good defensive position for your mining money, and one that will get immediate bounce from any upturn in commodity prices" back in November 2008? Oh yeah...that was me. Too stupid to buy my own reco, though. DYODD, dude.