Posts Tagged ‘mining and exploration stocks’

Northgate Minerals Corporation (NXG) shares surge on sale to AuRico

Monday, August 29th, 2011

Northgate Minerals Corporation (AMEX: NXG) shares shot higher 38.1% to $4.35 on word that it had been acquired by AuRico Gold Inc. (NYSE:AUQ). Volume for Northgate topped 11.7 million shares, or better than quadruple its usual volume.

A news release out August 29 revealed that the Toronto-based AuRico and Northgate have entered into a definitive acquisition agreement to create a new leading intermediate gold producer. The new company will have five operating gold mines, a sixth mine targeting production in 2012 and three gold development projects in Mexico, Canada, and Australia, three of the top global mining jurisdictions. The combined company is completely unhedged and offers full exposure to record gold and silver prices and an exceptional growth profile from approximately 475,0001 gold equivalent (“Aue”) ounces2 this year to 730,000+3 Aue ounces in 2013 (growth of approximately 54%).

Under the terms of the Agreement, AuRico will acquire all of the issued and outstanding common shares of Northgate on the basis of 0.365 AuRico common shares per Northgate common share.

Northgate CEO Richard Hall was quoted in the release as saying, “This transaction gives Northgate shareholders a significant premium to market and an exciting opportunity to participate in a leading intermediate gold company. The Northgate team has worked hard to develop a highly successful business in Canada and Australia and we look forward to further value creation through our combination with AuRico.”

Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in the Americas and Australia.

McMoRan Exploration Co. (MMR) jumps on new Gulf find

Wednesday, June 29th, 2011

McMoRan Exploration Co. (NYSE: MMR) shares climbed 11.5% to $18.48 Wednesday, after the oil producer said data from four wells pointed to the possibility of large accumulations of crude oil and natural gas in the Davy Jones prospect in the Gulf of Mexico. Shares in the company totaled 8.2 million, or about four times its normal daily volume average.

A news release announcing the find on June 29 indicated that McMoRan has actively pursued large ultra-deep targets located in the shallow waters of the GOM below the salt weld (i.e. listric fault) at depths generally below 25,000 feet since 2008. The data gained to date from four wells confirms McMoRan’s geologic model and the highly prospective nature of this emerging geologic trend.

Prior to McMoRan’s involvement in the ultra-deep, there had been only two wells drilled on the Shelf targeting these objectives; one did not reach its targeted depth and the other was outside of McMoRan’s focus area. Importantly, McMoRan’s results to date have indicated the potential for large accumulations of hydrocarbons at these deeper depths in the shallow waters of the GOM, which is expected to reduce the risk of future activities.

The Davy Jones offset appraisal well (Davy Jones No. 2), located on South Marsh Island Block 234, two and a half miles southwest of the Davy Jones No. 1 discovery well, was drilled to a total depth of 30,546 feet. As reported in February 2011, preliminary log results above 27,300 feet confirmed hydrocarbon bearing Wilcox sands with continuity across the major structural features of the Davy Jones prospect.

The release did not quote officials of the company.

McMoRan Exploration Co., headquartered in New Orleans, is an independent public company engaged in the exploration, development and production of natural gas and oil in the shallow waters of the GOM Shelf and onshore in the Gulf Coast area.

Layne Christensen Co. (LAYN) – Buzz Stock of the Day

Wednesday, June 2nd, 2010

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Shares of construction services provider, Layne Christensen Co. (Nasdaq: LAYN) were sharply higher in morning trading on Wednesday, after the company released first quarter results that shattered analysts’ expectations thanks in large part to an 85 percent increase in revenue from the company’s mineral exploration division.

Net income for the first quarter ended April 30 rose to $6.6 million, or 34 cents a share, from $1.0 million, or 5 cents a share, last year. Revenue for the quarter rose 13 percent to $230.7 million.


Analysts on average expected the company to earn 22 cents, on revenue of $216.9 million, according to Thomson Reuters I/B/E/S.

Earnings before income taxes for Layne Christensen’s mineral exploration division increased 386.0 percent to $8,587,000 for the three months ended April 30, 2010, compared to $1,767,000 for the same period last year. Mineral exploration revenues increased a staggering 85.0 percent to $45,878,000 for the three months ended April 30, 2010, from $24,794,000 for the same period last year.

“The extremely sharp turnaround in our mineral exploration business in North America and Africa produced a strong quarter considering where we were a year ago,” said the company’s president and CEO, Andrew B. Schmitt. “Our water supply project in Afghanistan also was an important contributor to earnings and the rest of the water infrastructure side of our business improved as well. Going forward, the question will be whether a stronger mineral exploration market and, hopefully, some turnaround in the housing and municipal infrastructure markets, can compensate for the reduced earnings as a result of lower current natural gas prices and the New Orleans project that was completed during this quarter.”