News

April 01, 2009

Etruscan Resources Has An Exciting Future In Gold Production And Corporate Expansion Thanks To A New Relationship

By Charles Wyatt

A quick look at the share chart of Canadian-listed Etruscan Resources over the past year reveals a bit of a mystery. In April 2008 the shares were above C$2.50 and they then fell steadily to hit a low of C25 cents in November. Since then there has been a bit of recovery to C$46 cents, but this looks quite out of place for a company producing gold from its Youga mine in Burkina Faso, a 40 per cent stake in the producing Samira mine in Niger where its partner is Semafo, and with two other projects on the way to production. If Etruscan was an Australian listed company there would have been a significant uplift in the share price since the beginning of this year, but no.

Maybe investors with long memories still blame it for its failed foray into diamonds in South  Africa some years ago, but that was then and now is now. Maybe investors in North America don’t like West Africa, but Randgold Resources and Red Back Mining give the lie to this. Maybe they still think the company is short of cash and have not realised that it raised C$10.5 million by a private placement from a Russian investment group in February. Maybe it is the hedging that worries them. Maybe...