"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, General Moly (GMO), McEwen Ming (MUX) and Newmont Mining (NEM); together with benchmark miner Freeport-McMoRan (FCX). Please do your own research, markets can turn on you faster than a feral cat.

Tuesday, June 2, 2009

General Moly Price Target Raised to $3.35 from $2.00


Morning Miners!

It is 5:41 AM and the sun just winked at the Diamond Valley. Before we return to this week's water story, a few comments on breaking news. At 7:41 AM (ET) this morning, National Bank raised its price target for General Moly (GMO) from $2.00 to $3.35 after an amazing rally yesterday that brought a closing price of $2.64. That gets a Colonel Yee-ha! This follows yesterday's good news in the broader markets:

"The Dow Jones Industrial Average jumped by 221 points after data on U.S. manufacturing, construction spending and personal incomes further solidified investors' growing belief that the economy is stabilizing. The S&P 500 surged to its highest level so far this year, powered by gains in its industrial, consumer-discretionary and energy sectors." (WSJ, 6/1/09)

What about metals? The Report regularly looks at copper prices to monitor the health of the global recovery, check this out:

"Strong stocks, a weak dollar, better-than-forecast economic data and technical chart buying combined to send copper to its strongest level since October.'We have the best of all possible worlds,' said Sterling Smith, vice president at FuturesOne." (WSJ, 6/1/09)

A little different tone than this March buckaroos! The Eureka Miner's Million Grubstake Portfolio had a 5.09% daily jump for a net gain of $101,934 since its kickoff May 10th. If the Grubstake is a barometer for Eureka County's good (or bad) fortunes, it looks like we are at least pointed in the direction of better times.

And all of this whirlwind of happy news on the day after General Motors entered bankruptcy and imminent expulsion from the DOW Industrials! What would my poor daddy say? Strange times indeed.

The Report looks at global trends to see what's coming next for Eureka County. We did two articles on the Canadian dollar (Loonie) and Australian dollar (Aussie) rallies to forecast the recent rise in gold price and fall in the U.S. dollar. The articles were tongue-in-cheek but illustrate the importance of looking at other commodity-sensitive economies to gauge what might pop out from behind the sagebrush:

Eureka Looney Tunes (5/19/09)

Is There a Loonie Aussie in Your Future? (4/9/09)


Besides being resource-rich countries, Canada and Australia for the most part have a similar rule-of-law, governance and capitalist philosophy to our own. This makes them particularly good choices for economic comparisons as opposed to say Venezuela with a popularly elected nut case dictator who got his economics degree from Havana U.

Tomorrow we'll examine the water crisis in Australia to understand what might be in the cards for Nevada in the coming years.

Enough talk, let's walk the walk:

Oil is down $0.49 to $68.09 (July contract); Gold is up $3.00 to $983.0 (August contract); Silver up $0.060 at $15.795 (July contract); Copper is down 0.0185 to $2.3005(July contract); Molybdenum holds at $10.25.

The DOW is down 2.57 points to 8718.87; the S&P 500, down 0.39 points to 942.48. The miners are resting after yesterday:

Barrick (ABX) $37.25 up 0.57%
Newmont (NEM) $48.11 up 0.25%
General Moly (Eureka Moly, LLC) (GMO) $2.64 down 0.07%
Freeport McMoran (FCX) $57.69 down 0.74% (a bellwether mining stock spanning gold, copper & molybdenum)

Steel stocks are down (a "tell" for General Moly):

Nucor (NUE) $46.40 down 1.23% - domestic steel manufacturing
ArcelorMittal (MT) $35.95 up 7.26 down 0.44% - global steel producer
POSCO (PKX) $85.11 down 2.82%- South Korean integrated steel producer

The Eureka Miner's Grubstake Portfolio is up 0.09% to $1,102,880.5 for a daily gain of $946.76.

Cheers,

Colonel Possum

1960 Chevrolet Impala photo by Taringa

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