Cqs Natural Resources Gr... Share Discussion Threads

[washbrook] 17/9/2009 08:47

jonnyboy1 -From your posts you own Golden Prospects.
I am somewhat puzzled that the NAV has failed to take off with most of it's top 5 in Gold and Silver Wheaton (which is a favourite of mine).I noticed NCE was up 11% on Wednesday-You are having a field day.
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[tangosaurus] 17/9/2009 07:06

CYN seems to me a better bet than EML in terms of bagging both the EXT story and the rare earths theme.

[jonnyboy1] 16/9/2009 18:54

i sold my rare earths this morning,arafura, i just could'nt help myself as they 3 bagged in a month!! Its insane but its all paying for the conversion of the warrants i hold so happy to be stepping away from the more volatile stuff and will still benefit if the sector remains red hot.

[etarip] 16/9/2009 17:15

Thanks washbrook for the Dines links. Very interesting to listen to. Do you have any ideas on investing in the rare earth metals?

[washbrook] 16/9/2009 15:26

Note the managers comments ''
One of the driving forces behind the management of the Trust is to invest in growth sectors which might have remained unappreciated by the investing public. Over the last month or so we have completed an increasing amount of work on the
RARE EARTH SECTOR-
listen to
DINES LETTER
Part one:-

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PART 2:-



NOTE to listen to the Dines Letter you have to download software 'Quick Time Player'

[washbrook] 16/9/2009 15:20

UPDATE FOR 31.08.2009:-


MANAGER COMMENT
One of the driving forces behind the management of the Trust is to invest in growth sectors which might have remained unappreciated by the investing public. Over the last month or so we have completed an increasing amount of work on the rare earths sector. Little publicity is afforded this group of metals which is somewhat surprising given the fact that they are an essential ingredient in hybrid car batteries, the new wave of compact fluorescent lights, computers, flat screen panel designs, digital cameras etc., etc. Even more intriguing is the fact that it is estimated that approximately 90% of world production( it is 97%-washbrook note) is in the hands of the Chinese who appear to have designs on the remaining 10%. There are a limited number of companies involved in the exploration and production of rare earths but so far the Trust has initiated holdings in Lynas Corporation, Arafura Resources and Reed Resources.
A sudden rise in the gold price reignited interest in the sector. Even though the rise was relatively small in percentage terms, gold shares reacted with much more enthusiasm with 10% gains not uncommon. Some of the Trust's more interesting investments below the top twenty holdings include Catalpa Resources, Pan African Resources, Allied Gold and Kingsrose Mining. Finally there were some outstanding drilling results from Kiwara, which appears to have a world class copper deposit in Zambia, while it hardly needs saying that, once again, Extract Resources announced startling results with one intersection average over 1% uranium. The Trust hit a high for the year as did the asset value.
All market data has been sourced from BloombergTOP 20 HOLDINGS
Gross Assets
(%)
1. Extract Resources- 9.0%
2. Kalahari Minerals -6.2 %
3. Goldcorp -4.5 %
4. REA Ordinary and 9.5% Pref- 3.0 %
5. New Britain Palm Oil -2.6 %
6. Kiwara- 2.6 %
7. FMG Finance 9.75% 2013 -2.5%
8. Randgold Resources -1.7 %
9. Nido Petroleum -1.4 %
10. New Gold Inc -1.4 %
Top 10 holdings represent -34.9%

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11. Nufcor Uranium -1.4 %
12. Mercator 11.50% 2012 - 1.3 %
13. AMI 2013 10% Cv -1.2 %
14. Lihir Gold - 1.2 %
15. Horizon Oil - 1.2 %
16. Blue Energy 10% Cv 2010 -1.2 %
17. Anglo-Eastern Plantations - 1.2%
18. Metals Exploration 9% -1.2 %
19. Mano River 9% 2010 -1.1 %
20. Western Areas 8% 2012 -1.1 %
Top 20 holdings represent 47.0%
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The Trust has 196 holdings

[jonnyboy1] 16/9/2009 11:49

Hi washbrook, i know from experience that they are hard to buy. I have had many fill and kills failed on them.

Make sure that you either sell them or exercise them before the end of october as they could just expire.

SP ticking up nicely

cheers
Jon

[washbrook] 16/9/2009 11:05

There are 3,932,914 warrants outstanding.
All these will not be exercised, they never do when it comes to the exercised time.
In my experience the outstanding warrants not exercised, the company will buy them at market value.

[washbrook] 16/9/2009 09:43

johnnyboy1
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After trying to buy cynw many times over the last few weeks I managed to pick up 10000 this morning at 79.75p.
A cheap way in the ordinary=£7999.7 9consideration) +£8500(excercise price)total =£16499.7
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current price for 10000 ordinary=£16894.95(consideration) therefore 2.395% discount.

[washbrook] 16/9/2009 08:12

GOLD AT $1017 per oz at 8.11am
Also the US$ index is weak =76.33

[jonnyboy1] 16/9/2009 07:46

NAV now over £2, and that does'nt include this mornings jump in EXT and all the gains in the gold silver sector.

I suspect 2.05 is nearer the mark.

[jonnyboy1] 15/9/2009 19:22

hi washbrook

yes i have checking for the new fact sheets everyday now as i hold cynw, nce, and gpm

I expect NAV to close significantly in Novemember as when people like me exercise their warrants it removes uncertainty.

For example, i hold 50,000 warrants and to maintain the same exposure i could exercise and then sell 25,000 shares. This is currently a drag on price and one of the reasons for the discount. Of course, liquidity of some of the underlying also is a factor and that improves as the MCAP of the companies increases. All in if NAV makes it to 250 i would expect discount to be sub 10%. Given, the convertibles there is an argument for a premium but that is bridge to cross later.

I wont BTW sell as i have put the money aside to pay and i will then join the ranks of the dividend collections as well.

[washbrook] 15/9/2009 18:22

etarip
Yes if it gold breaks a new high $1040.
it will be interesting what the portfolio top 20 holdings are for end of August2009 should be out within the next couple of days.
Notice after the down spike to 2.00pm today@$993 now picked up to $1004.
Blackrock World Mining trades on a discount usually 13% to 16% but does not own as many gold sharesas a % in it's portfollio.

I own 3000 in BRWM but I much prefer cyn.

[etarip] 15/9/2009 18:07

washbrook: Can you see the discount going below 20%?

[washbrook] 15/9/2009 14:00

Gold spike down to $993per oz@14.00 hours

[washbrook] 15/9/2009 13:59

UPDATED FOR 11.9.09:-

[washbrook] 15/9/2009 09:11

SMITHERS -thanks-Updated the 3 graphs this morning 12.8.09 to 14.9.09

[smithers] 14/9/2009 23:21

Washbrook. Your graphs and comments persuaded me to buy these shares some time ago. Your posts are appreciated.

[aylingd] 12/9/2009 20:49

Washbrook & Jonnyboy1, you are definitely not alone.

Been in and out of these since 06. Mostly in I'm pleased to say; has been most rewarding - can't see any reason not to continue to hold.

I guess I'm largely a silent investor & don't have much to add other than this is a solid investment imo however much appreciate your comments on this bb so please don't get feeling lonely.

D.

[etarip] 12/9/2009 10:03

You are not alone. My broker suggested I bought these back in Feb this year I am pleased to say.

[jonnyboy1] 11/9/2009 20:33

just you and me here washbrook. Easiest share i have ever owned. NAV 200+ next week?

I have been selling pretty much everything this week EXCEPT this and nce because we still have such a large cushion to NAV and a very good FM

[washbrook] 11/9/2009 12:15

UPDATED FOR 9.9.09

[washbrook] 08/9/2009 11:32

UPDATED FOR 4.9.09:-