Categories: General Market Commentary
Topics: General Market Commentary

Powerful December Kick-off

This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points.

What am I watching this week?

Well, it sure seems like December is off to a pretty fine start. We’ve got the NASDAQ at all-time highs. The S&P 500 is up. Tesla is surging; Intel is getting a boost as it seeks a new CEO. Treasury rates are up with the dollar index approaching the 107 level. 

And despite a perpetually strong dollar, gold is continuing to look technically solid above US$2,650 per ounce with silver firmly in tow above US$30 an ounce.  

We’ve also been keeping a keen eye on copper, particularly with phase-one drilling just around the corner for our #1 copper-gold play out of Peru. So far so good with the red metal holding the US$4 mark, currently right around US$4.10/lb. 

All in all, it looks like we’ll be closing out 2024 with some gusto and with a very, very favorable outlook as we head unflinchingly into a new year. Of course, inevitably, something unexpected always seems to happen, particularly with a new — well, sort of new — administration coming in… so we’ll see what happens as that page is turned. 

Speaking of gusto, Australian gold miner Northern Star Resources announced it is buying smaller De Grey Mining in an all-share deal valued at US$3.3B! Northern Star is taking advantage of near-record-high gold prices as it seeks to boost reserves, which I expect is just the start of things to come M&A-wise in the precious metals space. 

What else are we watching? 

We're also keeping an eye on the uranium space. In one of the better deals across the junior landscape, Cosa Resources (TSX-V: COSA)(OTC: COSAF) just received conditional approval for its transaction with NYSE-listed Denison Mines on the acquisition of a 70% interest in a portfolio of three uranium exploration properties in the eastern part of Saskatchewan’s prolific Athabasca Basin. 

Essentially, the deal will see Denison take a stake in Cosa with Cosa, in exchange, becoming the exploration arm as JV partner on the aforementioned properties with Denison retaining a 30% interest in each respective property. In other words, great for Denison Mines, great for Cosa Resources, and great for shareholders.

Folks, I’m liking what I’m seeing! Have a great one out there everyone. 

Let’s get it!

Gerardo Del Real
Editor, Resource Stock Digest