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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Angus&Ross | AGU | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| 0.00 | 0.00% | 2.625 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2.625 | 2.625 |
| Top Posts |
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Posted at 23/8/2009 13:37 by yorgi There is little point in looking back in what might have been, as you say Ifc4ever we are where we are.I do think communication is important and believe a well designed website which is kept up to date with all that is going on helps install confidence in existing shareholders and will give all the information that any prospective investors require. If it attracts investors as opposed to loosing them can only help the share price which is obvoiusly better if shares have to be issued to raise cash.....although that is the last thing we want now. However if the share price was a lot higher then maybe a different matter. If all goes to plan with N. then we in a much better position for the start on Black Angel. Who knows where the price of gold might rise to in the next six to nine months ! I think we can be pretty confident that zinc and lead will rise further Are you going to start a new BB with the new name Ifc4ever ? |
Posted at 23/7/2009 12:04 by moreforus Metals Rise on Demand From China; Yen Weakens, Stocks Advance Share | Email | Print | A A A By Justin Carrigan and Stuart Wallace July 23 (Bloomberg) -- Industrial metals rose on speculation China will lead the global economy out of its worst recession since World War II, and the yen declined as investors sought higher-yielding currencies. Aluminum advanced for an eighth day, its longest winning streak in four months, while nickel climbed to a three-week high. The yen fell versus all 16 most-traded currencies, weakening more than 1 percent against the Norwegian krone, South African rand and Australian dollar. The MSCI Emerging Markets Index added 1 percent to 814.37 as of 11:19 a.m. in London. China imported a record amount of refined copper in June and aluminum purchases also gained as manufacturing in the nation expanded for a fourth month. East Asian economies including China, South Korea and Indonesia may post a "V- shaped" recovery from the global recession, the Asian Development Bank said today. "China's appetite for many commodities has exceeded expectations," Standard Chartered Plc analysts Judy Zhu and Helen Henton said in a report. "This has reinforced China's increasing importance in the global market." Aluminum for delivery in three months added as much as 1.1 percent to $1,765 a metric ton on the London Metal Exchange, the highest level since Dec. 1. Nickel rose as much as 2.2 percent to $16,600 a ton. Zinc, tin and lead also gained. Crude oil for September fell 0.2 percent to $65.26 a barrel on the New York Mercantile Exchange. Corn for December delivery rose as much as 3.9 percent to $3.3175 a bushel, the biggest gain since June 5. Earnings Improvement Earnings at companies in the Standard & Poor's 500 Index that have reported results since July 8 topped analysts' estimates by an average of 11 percent, with 85 out of 114 beating projections, according to Bloomberg data. The yen declined as Japanese financial companies prepared to raise at least 700 billion yen ($7.42 billion) for funds that will invest in international assets. Japanese investors were net buyers of 709.4 billion yen of overseas assets in the week ended July 11, figures from the Finance Ministry showed last week. China's Shanghai Composite Index climbed to a 13-month high and benchmark equity indexes in South Korea and Indonesia advanced. The Asian Development Bank said the region's economy will probably expand faster than the 3 percent estimated in March, before growth accelerates to 6 percent in 2010. |
Posted at 05/6/2009 16:07 by wow400 'The ingredients are in place for a bull run in gold and gold stocks'The dollar is beginning to wobble, US treasuries are under pressure on fears of downgrades and mounting deficits, and inflation is set to rise. Rupert Robinson, chief executive officer, of Schroders Private Bank reckons that all the ingredients are in place for a bull run in gold and gold stocks. He said: "The dollar is beginning to wobble, US treasuries are under pressure on fears of downgrades and mounting deficits, and inflation is set to rise. "John Paulson, the now legendary US hedge fund manager, who made billions of dollars from shorting sub-prime, has a very substantial exposure to gold bullion and gold stocks in his fund. "But regardless of your outlook for the economy, gold is a great each-way bet. It is an investment that works as well in an inflationary environment as a deflationary one with bullion, it's "heads you win, tails you win". "Precious metals like gold and silver will rise whether or not central banks are successful in reflating the economy. If the market believes inflation will return, long-term interest rates will rise, the US dollar will fall and gold and precious metal stocks will surge. If deflationary fears resurface, gold bullion will rise as investors run for cover and seek maximum security for their money". Mr Robinson said that fund management teams that he rates highly in the gold sector are from BlackRock, Investec and Baker Steele. He added: "Alternatively investors can buy the Market Vectors Gold Miners exchange traded fund. |
Posted at 01/6/2009 06:09 by moreforus POG up again -> metals up again - at some point "value" investors will pile in here..Asian Stocks Advance on China Manufacturing, Commodity Prices Share | Email | Print | A A A By Jonathan Burgos and Shani Raja June 1 (Bloomberg) -- Asian stocks rose, extending the longest monthly winning streak since the financial crisis began in 2007, as an expansion in Chinese manufacturing for a third month drove commodity prices higher. Mitsubishi Corp., a trading house that gets more than half of its profit from commodities, jumped 6 percent in Tokyo. Cnooc Ltd., China's largest offshore oil producer, gained 6.9 percent as oil climbed to a seven-month high. Energy stocks are headed for their highest close since Sept. 25. BOC Hong Kong (Holdings) Ltd., a Bank of China Ltd. unit, surged 7.6 percent after Deutsche Bank AG recommended investors buy the stock. "Positive economic numbers, particularly from China, should provide a further leg up for this rally," said Khiem Do, head of multi-asset strategy at Baring Asset Management (Asia) Ltd. in Hong Kong, which oversees $7 billion. "Risk appetite is coming back with a vengeance." The MSCI Asia Pacific Index advanced 2.1 percent to 104.21 at 1:56 p.m. in Tokyo. The gauge has surged 48 percent since falling to a more than five-year low on March 9 on speculation the worst of the financial crisis has passed. The Nikkei 225 Stock Average rose 1.6 percent. Australia's S&P/ASX 200 Index gained 1.7 percent as the government said retail sales rose for a second month. China's Shanghai Composite Index jumped 2.9 percent after the Federation of Logistics and Purchasing reported a reading of 53.1 for its Purchasing Manager's Index in May. A result above 50 indicates an expansion. Oil, Copper Prices City Developments Ltd. climbed 3.8 percent, leading gains among Singapore's real-estate stocks, on speculation rising property prices will boost profit. Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line by sales, jumped 6.7 percent as shipping rates climbed for a 20th day. Hyundai Motor Co., South Korea's largest carmaker, rose 3.3 percent after Morgan Stanley raised its share-price target. Futures on the Standard & Poor's 500 Index gained 0.6 percent, erasing an earlier 0.2 percent drop. The gauge climbed 1.4 percent in New York on May 29, capping a three-month rally for the index, as commodities climbed on speculation an economic recovery will boost demand for fuel, metals and crops. Optimism that government spending and interest-rate cuts will support global growth has helped drive the stock rally since March. MSCI's Asian gauge climbed 12 percent in May, its third monthly advance, and the longest winning streak since Bear Stearns Cos. filed for bankruptcy protection in July 2007 for two hedge funds. Stimulus Package Mitsubishi gained 6 percent to 1,907 yen in Tokyo. Its closest rival Mitsui & Co. climbed 5.8 percent to 1,287 yen. BHP Billiton Ltd., the world's largest mining company, added 3 percent to A$35.71 in Sydney. Energy and materials stocks accounted for 25 percent of the MSCI Asia Pacific Index's gain. Crude oil futures in New York climbed as much as 1 percent $66.95 a barrel in after-hours trading, the highest since Nov. 5. The price advanced 30 percent in May, the biggest monthly increase since March 1999. Copper prices rose 2.8 percent on May 29, capping a 7.3 percent gain in May. Cnooc climbed 6.9 percent to HK$10.90. The MSCI Asia Pacific Energy Index climbed 2.8 percent to 483.80, set to close at its highest level since Sept. 25. Jiangxi Copper Co., China's largest producer of the metal, surged 8.6 percent to 30.95 yuan in Shanghai. Loan growth, accelerating fixed-asset investment and rising retail sales in China have spurred confidence that Premier Wen Jiabao's 4 trillion yuan ($586 billion) stimulus package is working. In Japan, the government last week raised its assessment of the economy for the first time in three years. Property Rally "China has been the only beacon in the intense global economic storm we've found ourselves in," said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management in Sydney. "Continuing strength in China's economy bodes very well for the Asian region generally." The stock rally since March has driven the average valuation of companies on MSCI's Asian index to 1.4 times the book value of assets on May 29, an increase of 17 percent from the end of 2008. BOC Hong Kong surged 7.6 percent to HK$13.28. Deutsche Bank raised its recommendation on the stock to "buy" from "hold," saying it was the top pick among Hong Kong banks amid an increase in return on equity. City Developments, which last week increased prices at one of its developments by as much as 6 percent, gained 3.8 percent to S$9.81. CapitaLand Ltd., Southeast Asia's biggest developer, rose 5.3 percent to S$4. "We think this is a positive development and suggests high probability of a meaningful recovery from the second half of 2009," Regina Lim, an analyst at UBS AG in Singapore, wrote in a note today. Best Performers Sino Land Co. rose 2.2 percent to HK$14.70 in Hong Kong. The company said it will lift prices at its Lake Silver development by as much as 5 percent after selling more than 1,600 apartments since May 27. Sun Hung Kai Properties, the city's biggest developer by market value, gained 2.8 percent to HK$99.20. A gauge of property stocks on Hong Kong's Hang Seng Index has climbed 51 percent this year, the most of the benchmark measure's four industry groups. Kawasaki Kisen, Japan's third-largest shipping line by sales, advanced 6.7 percent to 460 yen in Tokyo. STX Pan Ocean Ltd., South Korea's biggest bulk carrier, added 3.4 percent to 13,650 won. China Cosco Holdings Co., the world's largest operator of dry-bulk ships, rose 3.6 percent to HK$10.98. Baltic Dry The Baltic Dry Index, which measures the cost of shipping commodities, rose 5.9 percent in London on May 29, its 20th day of gains. The gauge climbed 96 percent in May, its biggest monthly advance on record. Hyundai Motor rose 3.3 percent to 71,600 won. Morgan Stanley raised its share-price target by 10 percent to 88,000 won and maintained its "overweight" rating, citing the company's stronger-than-expect The stock also advanced as the U.S. government said General Motor Corp. will file for bankruptcy today, emerging with majority ownership by taxpayers and liabilities reduced by more than 50 percent. Toyota Motor Corp., the world's largest automaker, was added 0.3 percent to 3,820 yen, erasing an earlier drop of 1.1 percent. The GM bankruptcy won't disrupt Japan's auto industry, Chief Cabinet Secretary Takeo Kawamura said. |
Posted at 16/5/2009 21:52 by moreforus i think this is the most interesting statement:-Mr Keen believes that one of the reasons for the increased fund raising activity is investors recognising that there is a lot of very good value out there in small cap companies. He concludes: "The markets are open to do business." i think investors will begin to recognize that value in AGU....probably we are at the point price wise of maximum pessimism, however the company as far as i can see is still going.... |
Posted at 15/5/2009 13:01 by wow400 Comment from Investor's Chronicle:____________________ Fundraising flood continues Created: 13 May 2009 Written by: Martin Li When builders merchant and home improvement retailer Travis Perkins announced a £300m rights issue on Monday, it joined a growing list of UK companies tapping their shareholders for further funds in the face of the credit crisis. Lonmin(£300m) and 3i (£700m) have also launched rights issues, while Taylor Wimpey has announced a £510m placing and open offer. Despite the Bank of England printing more money to stimulate the financial system, banks remain reluctant to lend, which has left companies needing to shore up their balance sheets with few options but to make cash calls to shareholders. Some £23.3bn had already been raised through rights issues alone by the end of April. The smaller end of the London market - which had seen some resistance to cash calls as insititutional investors focused on larger companies - is also witnessing increased fund raising activity. The placing by Iraqi oil explorer Petrel Resources was broker Blue Oar's seventh of the year, which, though hardly a spectacular number, is a considerable improvement on recent times. Jerry Keen, director of corporate broking at Blue Oar, confirmed, "We are starting to see activity come back. There is a feeling that we can see our way through the credit crunch." Less conventionally, Aim companies Gulf Keystone, EMED Mining and Angus & Ross have raised money through an unusual financing technique called a 'standby equity distribution agreement', whereby companies sell shares to a financial entity which then drip feeds shares into the market. Mr Keen believes that one of the reasons for the increased fund raising activity is investors recognising that there is a lot of very good value out there in small cap companies. He concludes: "The markets are open to do business." |
Posted at 10/10/2008 17:55 by tsmith2 Wise Words For Investors In A Bear MarketBy Lawrence Roulston of Roulston Opportunities We have all heard enough about how bad the financial situation is. There is no question that the markets are in a terrible mess. The U.S. credit crisis is serious, it is spreading, and it's not going to get better over night. The situation is worse than nearly anyone imagined. However, there are some bright spots and those bright spots represent investment opportunities. As so often happens, the markets act like pendulums, swinging from one extreme to the other. A year and a half ago, the U.S. economy was booming, fuelled by a fraud of gigantic proportions that pushed housing prices and debt to absurd levels. The bursting of that housing bubble saw the pendulum swing to the opposite extreme as investors panicked and sold everything. There may be a long period of transition as the various bailout measures kick in and get the economy back on track. But, let's not forget that the U.S. has been through a number of difficulties and always manages to muddle along and then recover to be stronger than ever. I don't believe that the U.S. will ever regain the level of supremacy that it once held in the financial world but the current crisis will pass, as it has every time before. Look, the U.S. economy is not going to drop into some great black hole in the ground and suck the rest of the world in as some would have you believe. As far as the rest of the world is concerned, it doesn't really matter a great deal if the U.S. economy grows by 1 or 2% or shrinks by 1 or 2%. Looking at the metals: China has been and continues to be the most important driver in the metals markets. Headlines are now screaming out that the Chinese economy is slowing. Those few investors who read beyond the headlines will see that China's pace of growth has slowed from more than 11% a year to just over 10%. If you think about it further, you will realize that 10% growth, coming on the larger base, actually represents the same amount of real growth as last year. India is still growing strongly, as is much of Asia. Similarly, the pace of growth is slowing, but is still at a pace that developed countries can only dream of. Similarly, the popular press trumpets the fall in the oil price. It is only down when stacked up against the spike earlier in the year when speculators pushed it briefly to $140. When measured against the level of a year ago and two years ago, the oil price is up. Huge amounts of money are flowing to oil exporting nations which, like the Asian nations, are building infrastructure. We constantly hear about the bursting of the commodities bubble. Yet, metal prices are still well above long term trends. Iron ore prices are still rising sharply: and definitely not driven by speculators. The prices are set by producers dealing directly with users. When President Bush and the Treasury Secretary were trying to sell the bailout package, they painted a picture of dire consequences if the measure did not pass. That message seems to have been taken literally by many investors who are now even more terrified than they were before. Whether the U.S. grows by a couple of percent, or shrinks by a couple of percent, other parts of the world continue to grow. It is important to note that the emerging markets are far more intensive users of metals that the developed world. The U.S. is more of a service-oriented economy, whereas China and the other developing nations are more heavily involved in building factories, housing, infrastructure and other things that use a lot of metal. The net result is that world-wide demand for metals continues to grow. New sources of supply are needed to match that growing demand and to replace older mines as they are depleted. Much of the mining industry investment in this cycle has been directed to buying existing production. The major producing mining companies are being valued on the basis that metal prices will fall hard based on a U.S. recession impacting the rest of the world. That hasn't happened, and will not happen. And that means that the mining companies are being valued at exceptionally low levels in relation to actual and projected earnings. Teck Cominco represents exceptional value. The majors have suffered, but the smaller companies have been beaten down to absurdly low levels. We are already seeing takeovers as the larger companies go bargain hunting. The smaller and mid-tier companies are beginning to merge. Those deals will be accretive to shareholder value as they will create larger and stronger companies. Recovery in the junior mining sector will not be the same for all companies. Those companies that need to raise money in the near term will continue to face real challenges. Many will have to look to joint ventures, asset sales and mergers to find the money they need to move forward. There are many small companies with defined metal deposits, strong management, and cash. Those companies will come back early in the recovery. Some commentators worry that there will be no money for mine development. Clearly, if a junior walked into a bank tomorrow and asked to borrow a few hundred million dollars to develop a mine, they would get a rather chilly reception. However, the smelter companies, the metal trading companies, and the majors are awash in cash and are seeking new supplies. Baja Mining recently completed an $800 million financing package to develop a mine in Mexico. They worked with a consortium of Korean metal companies. The market seems to have missed the fact that Baja's project is now funded and well on its way to production. Base metal companies are out of favour, making advanced-stage deals like Baja excellent investment opportunities. Once the panic subsides, there will be a great many banks and other investors who welcome the opportunity to invest in tangible assets instead of the alphabet soup of financial hocus pocus that was on offer for the past few years. I believe that the current financial mess will result in a return to more fundamental-based investing and that move will benefit mine developers. It won't happen overnight, but it will come. The message here is that those juniors that hold metal deposits that can be developed into mines will see a return to more rational values. Those companies that are still hoping to find a metal deposit at some time in the future may have longer to wait. There is lots of cash available among the larger mining companies. Just looking in Canada, we see Barrick with nearly $2 billion, and Teck, Goldcorp and Inmet all sitting on more than a billion dollars of cash. What I'm saying here applies equally to precious metals, base metals, minor metals and uranium. We aren't looking to gains in the commodity prices. We are looking to companies that are adding value to their assets. The most immediate market action is likely to come in the gold sector. The cost of the financial bailout in the U.S. is measured in the trillions of dollars. The latest bailout package was $850 billion, including the tax breaks thrown in to get it approved. Add in the earlier bailouts and recognize that nationalizing Fannie Mae and Freddie Mac added $5 trillion dollars of liabilities to the U.S. government, bringing the total debt to $14 trillion. Don't forget the on-going wars in Afghanistan and Iraq and the huge trade deficit. The dollar was falling sharply before the burden of the bailouts was added. European governments are also conducting bailouts of failed banks. Ironically, the bailouts have hurt the price of gold. That is a short term reaction, as traders seem to reason: "OK, the U.S. financial system isn't going to collapse this week, I don't need to own gold", and they dump their holdings. Anybody who takes a longer term perspective will realize that if a government simply keeps spending enormous amounts of money that it doesn't have on things that do not generate a return for the economy, then the value of the currency will decline. The whole financial mess, for many investors, has destroyed confidence in the global financial system. Right now, investors seeking safety are flocking to U.S. treasury bills. That is particularly ironic, as the dollar, in the longer term, will suffer the most from the bailouts and the plummeting confidence. In time, gold will be the biggest beneficiary. I can't tell you what the gold price will be tomorrow, or next week or next month. Nobody can. I can tell you with certainty that the gold price will be high enough that the major gold producers will continue to mine it. As long as gold companies are mining gold, they will be looking for new deposits to at least offset the amount mined each year. The juniors will continue to play an important role in finding and developing new gold deposits. It doesn't really matter what the gold price is: a new discovery will generate big returns for shareholders of a junior gold company. Advancing a deposit toward production will generate returns for shareholders of a junior gold company. It's not hard to make the case that the situation in the junior mining sector will improve in time. Of course, we all want to know precisely when the markets will turn around. Just remember that the situation always looks bleakest at the bottom of the market and it looks rosiest at the top of the market. It requires a lot of nerve to invest contrary to what appears to be the right thing to do. At present, at least on the surface, this appears to be a really bad time to be investing. And that makes it the best time to be buying. The greatest gains come from buying at the bottom of the markets and selling at the tops. That means buying when prevailing wisdom says it is a bad time. We will never know exactly when the bottom is. Here are some things to consider at present. Over the past few weeks, Warren Buffet has invested $12.7 billion into the markets, including $5 billion into Goldman Sachs, one of the investment banks. The popular press thinks it strange that Buffet is investing at a time when things are so bad. But, that is precisely how he became the world's richest investor. Other signs that the worst may be over: the U.S. bailout has been approved. It will take some weeks for the program to be implemented, but at least bankers know there will be relief coming. The failed banks are being snapped up quickly by other banks. In the latest deal, Citigroup tried to scoop up Wachovia within a day of its collapsing, but they were outbid by Wells Fargo. Citigroup, which had the smarts to avoid the moves that led other banks into trouble, published a report last month that examined the commodities. They concluded: "It is important not to lose sight of the long term picture. We regard these conditions as a correction ... in a secular bull market. The drivers of the super cycle - urbanisation and industrialization in China and supply shortfalls are intact. Indeed the next up-cycle could be even more powerful than its predecessor." If that report had come from one of the failed banks, I would not have paid much attention. Citi had enough smarts to avoid the mistakes that overtook so many of the other banks. Investors are not going to suddenly rush back into the junior resource markets. But, those who buy the solid companies at the present severely depressed prices stand to enjoy big gains in the fullness of time. The most immediate reaction will come from within the industry. Smaller companies will merge in deals that add shareholder value. The larger companies will be taking over smaller companies with good deposits. To give an indication of the valuations: At present, major gold companies are valued on the basis of just under $200 per ounce of total gold resources. Juniors, on average, are valued at a mere $29 per ounce. At prices like that, the juniors must look extremely enticing to the larger companies. Obviously, there would be takeover premiums that would generate returns from the current price levels. Companies like CGA Mining, which is close to production, look very attractive.Another interesting area is platinum: the price is down 60% from the $2,300 level earlier this year. Demand is growing and supplies are constrained. The market was clobbered by a big selloff by a platinum ETF. Eastern Platinum is making big profits even at the current price and will do very well with a rebound. It's a similar situation for silver: development stories like Bear Creek, small producers like Aurcana and Great Panther. Uranium is going to come back in the not too distant future. Hathor has made a very important discovery and is not getting full value. Soon enough, investors will again wake up to the fact there is an energy shortage and uranium stocks will again become popular. Panic selling at this stage is definitely the wrong thing to do. Taking advantage of the panic selling of others could net you some good companies at attractive prices. Be selective. Be patient. The market will come back. |
Posted at 24/9/2008 19:26 by wow400 Crunch time looms for RAB CapitalInvestors in RAB Capital have until Monday to decide whether to lock up their money in its struggling flagship fund or to pull out their cash. By Katherine Griffiths, Financial Services Editor Last Updated: 6:53PM BST 24 Sep 2008 RAB asked investors in its $1bn (£540m) special situations fund to agree to a three-year lock-in earlier this month in an attempt to turn around the fortunes of the fund, which has been hit by the fall in commodity prices. RAB will hold an extraordinary general meeting about the lock-in in the Cayman Islands on Monday. If 75pc of investors who vote do not back the plan, RAB may liquidate the fund. Philip Richards the R in RAB stepped down as chief executive of the group at the beginning of September to concentrate on managing the special situations fund. The fund is down 12pc this month. RAB has a total of $4.7bn funds under management. City sources said investors were not happy with the lock-in, which will mean reduced management and performance fees in return for a promise by investors to leave their money in place. But investors are unlikely to want their holdings to be liquidated at current depressed prices. RAB has canvassed its biggest investors and is understood to be confident it will win the vote at the EGM. Mr Richards gave up his role as chief executive to concentrate on trying to revive the special situations fund after it performed badly in August. Investors who put their money into the fund several years ago have realised huge gains. But Mr Richards has been criticised for certain recent high-profile holdings, such as Northern Rock and A1 Grand Prix, a rival to Formula One. |
Posted at 10/9/2008 16:59 by wow400 Wonder if this had anything to do with it:RAB Capital stops investors taking money from Special Situations Fund By Emma Thelwell Last Updated: 9:48am BST 10/09/2008 RAB Capital, the London-listed hedge fund group, plans to freeze clients' redemptions from its flagship Special Situations fund after the fund lost almost 50pc this year. RAB proposed to lock down investor funds and postpone redemption by three years to October 3, 2011. Currently withdrawals from the fund are paid out on a quarterly basis and investors can ask for their money back by giving 180 days notice. Philip Richards, who runs the fund, stepped down last week as chief executive of RAB Capital to concentrate on turning the Special Situations fund around. Mr Richards said today: "We are very disappointed with the performance of Special Situations in 2008 and greatly regret the impact that the performance will have on investors. "However, we believe that the underlying thesis of investment in early stage natural resources is one that will repay patient investors over time." RAB blamed poor liquidity and the very weak market for early stage natural resources and other development stocks for its decision. Katrina Preston, an analyst at Landsbanki, said: "Given illiquidity issues in a number of RAB's other funds, we believe the company may be forced to propose similar fee cuts elsewhere in order to avoid forced selling to satisfy accelerating redemptions." The Special Situations fund - which incorporates three investment vehicles - has estimated assets under management of $923m. RAB Capital shares tumbled 12pc in morning trading, to 25.75p each. |
Posted at 21/12/2007 12:00 by julianc35 Retail investors burnt by small miners and explorers. By Rob Mackinlay Retail investors work on too short a time frame to reap the rewards of AIM-quoted mining exploration companies, according to a www.investegate.co.u The panel - Andrew Zemek, chief operating officer at Angus and Ross; Cailey Barker, vice president and mining analyst at Royal Bank of Canada; Rory Sullivan, head of investor responsibility at Insight Investment and Brock Salier, mining analyst at Ambrian Captial agreed that retail investors provide the backbone of AIM-quoted mining exploration and small miner investment. Zemek said that retail investors dominate the sector but said that his firm Angus and Ross gained a strong institutional following after a successful promotions. The panel agreed that institutional investors are limited in their involvement because the companies are so small that they fall below the radar of institutional investors. Institutional investors are often further constrained by a 25% cap on the size of the stake they can hold in any company. Salier said that the lack of interest in London meant there was a lack of geological expertise required for analysing explorers. He said that this was concentrated in Australia and Canada. Barker said that, after the initial floatation, retail interest in the UK was often too weak to sustain liquidity in small explorers. He said he had seen a number of them leave the London Stock Exchange and return to Australia or Canada. Salier said that this factor posed the greatest risk to retail investors who are active in the AIM mining sector. He said that they often work on too-short a time frame to reap the rewards of their investments. He said: "If a junior lists with a two year development story, for example, in Australia or Canada, the share price might tick up slowly over two years. But here it will be zero or very low trading because the institutions will buy and hold and the share prices tend to tick down over an 18 month period and then scramble up over the last six months as the development story actually materializes. "Institutional investors will all hopefully have done well out of that. But that's quite a long time frame for retail investors who may see it losing money in the short term." Salier said: "The illiquidity on AIM means that if you buy and hold you are far more likely to do better. If you are expecting a three month return and you pull out after three months you could be losing out on annualized returns of 50-100% but most of that may come in the last three months of a two year investment so time frame is critical." A full transcript of the www.investegate.co.u |
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