Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, October 16, 2009

Article Excerpt

NEW GOLD, $4.54, symbol NGD on Toronto, stands to gain as a result of Barrick Gold’s (Toronto symbol ABX) agreement this week to pay $465 million for Xstrata plc’s 70% stake in the El Morro copper/gold project in Chile. El Moro contains an estimated 8.3 million ounces of gold and 6.3 billion pounds of copper. The project is 70 kilometres north of Barrick’s 100% owned Pascua-Lama project, where the company is currently building a mine, and 110 kilometres south of Barrick’s 50%-owned Cerro Casale project. The proximity to the two mines would let Barrick hold down the costs of building a $2.5-billion mine at El Moro. New Gold owns the remaining 30% of El Morro, and has a right of first refusal on Xstrata’s 70% stake. New Gold has until January 11, 2010, to exercise that right. It’s unlikely that New Gold will buy the remaining 70% of the project. However, Barrick intends to accelerate mine construction at El Morro, which adds…