Mining Minerals & Metals Share Discussion Threads

[bongo bwana] 21/3/2009 17:36

Nothing obscure about the management of this exploration company IMHO but thats not to say that HMc wont get a flea in his ear at the AGM from the odd shareholder who is peeved at the lack of drilling results this season to date. But that wont remain the case as we proceed towards the AGM.

Im suggesting nothing other than I really should tighten up the loose use of my second language. GEX has NOT exhausted its funds.

In order to optimise the effectiveness of drilling programmes drilling can be temporarily suspended in order to allow the assessment of results to date - as well you know H.

[bongo bwana] 20/3/2009 10:16

Dek its my understanding that a considerable degree of extra clarity has developed in relation to GEX's drilling plans and their finances - so much so that Id expect that drilling has recommenced or is about to recommence.

Let me recommend that you give HMc a buzz.

[bongo bwana] 20/3/2009 09:08

Sh 1 teeeeeee

Naaaahhh Deka but Im not surprised - this is the way CEY will go to IMHO.

I see that Paulson made a killing (estimated $450million ) on shorting Lloyds Bank and within days bought a 12% stake in a large US based gold producer.

Ive found myself wondering in recent days would GEX be in preliminary discussions to sell the Komana or Sankarani license in its entirity to GF? Im sure HMc would have INFORMALLY met up (as one would) with GF hierarchy at that recent conference he attended and Im certain that progress at both would have been the subject of animated detailed discussion.

In time GEX will go the way of CEY and then MML, LOL and IMHO

[deka1] 20/3/2009 08:15

Hi eintracht, my av here 10p, sure this will recover , when he gets round to telling us whats going on

[bongo bwana] 20/3/2009 07:04

I wonder is JP Morgan continuing to offload??

[eintracht] 20/3/2009 00:16

Hi deka, very similar investments to me ecept I havn't got MCR but EMED in the UK and ALK and EXT in Oz. CEY is by far my biggest share - over 60% of my portfolio. Average 12p here so could do with a little bit of a recovery.

[deka1] 19/3/2009 19:27

Hi H, got my money in four golds, GEX,-- MML av 47P (largest holding at the mo ) CEY, (second largest) and whats left of mcr, had my chips with that one i think, fritter it away, lol

[haydock] 19/3/2009 19:16

Dekal.
So,you still haven't got all your potatoes in one basket, i have wondered about all in CEY, but I think the greater gain will be GEX.
Still above the Japanese clouds, & with the climate as it is, surely only a matter of time, before we start really frying.

I think I would rather be a fryer on GEX as well, instead of just a chipmunk on CEY.
All very chipper today, for Gold & oil.
I notice my other gold HIF is also dead, having been pumped & dumped last month.
Lots of activity around Argentina though & lots of good gold news from that area as well.
Only a matter of time for the tiny golds.
Regards Hay.

[deka1] 19/3/2009 18:28

Haydock hi, a bit strange i agree , 500k at 3.7p looks like a buy, got to be an RNS soon, nothing since Oct 08

[haydock] 19/3/2009 17:41

There are eating their chips on CEY, the euphoria of the rise ias giving us indigestion.

Just thought I could add my penneth on here, looks a little fishy on here :half a million went through & no change???

[robbi123] 18/3/2009 19:12

Gold back at $940, very nice bounce.

[robbi123] 18/3/2009 18:06

Better volume today, seems to have found a level again. Lets hope we can hold onto our gains after the next rise

[spaceparallax] 17/3/2009 17:19

Aren't Japanese clouds similar to European clouds - less stylish but more reliable?

[haydock] 17/3/2009 08:43

Well, i do not claim to understand in any way the Japanese clouds.

However from a visual opinion we are still floating above.

Anybody read the tealeaves?

[maniac3] 16/3/2009 22:18

Possibly .... short term though it's just a shame to see recent gains chipped away at in just a couple of sessions.

Oh well.

[bo doodak] 16/3/2009 18:37

Don't comment often, so thanks to all for all the regular info on here.

I think we are about to go through a double dip recession similar to the 70's. So I envisage GEX won't really be sought until inflation accelerates the 2nd part, in a couple of years.
Quite happy to wait & slowly add on progress untill then. Hopefully the next funding arrangements might take us through to recognition in the market.

[1waving] 16/3/2009 17:24

Jim Rogers speaks out on Comex gold and silver.

Extracts:--

Comex gold trading is a paper game: Jim Rogers
2009-03-15 23:00:00

Commodity Online
Even as gold spot and futures prices surge globally and bullion analysts continue to predict that the yellow metal prices will zoom to astronomical levels ranging from $1,000 to $5,000, there is more opposition coming to the paper gold at Comex.

Renowned global commodities investor and analyst Jim Rogers says gold trading at Comex, a division of Nymex, is a paper game and not a physical game.

"If you can take 50% of the gold away from the Comex then the price will be closer to what you are paying for physical today. If you take 50% of anything away, you know take 50% of IBM away the prices are going to go up," said Rogers, a vocal critic of America and Britain, who left the United States to settle down Singapore."

"It is not just Rogers alone who is upset at the way Comex gold is going. Bevan points out that there is something going on in gold. "The Comex stocks have hardly changed since December and demand and deliveries have been substantial. Also the ETF's have added over $3 billion just this January. I don't know where they get their gold but certainly not the Comex."

Now, do you know that some large American banks are dominating the gold market in the world? Or some of the same banks that helped spawn the current global financial crisis, have the largest positioning in gold and silver futures at Comex, a division of Nymex?"
--------------------------

Full article:--

[haydock] 16/3/2009 09:59

Chart was indicating overbought situation now seems ready to bounce off the 50dma?
200day now at 5.25 could be the next stop, unless it breaks down with gold weakness, poor sentiment etc.

Should have a chance when our newsflow recommences, & we have a long trail of that to come for certain.
Todays mini bear rally may encourage our man, but miners started badly.

[1waving] 16/3/2009 09:39

By Carli Lourens
March 16 (Bloomberg) -- Gold bulls, flush from a ninth year
of gains in the metal, should pour their winnings into mining
companies as the shares benefit from falling costs, according to
analysts at JPMorgan Chase & Co. and Fairfax IS.

The CHART OF THE DAY shows the FTSE Gold Mining Index,
including Barrick Gold Corp., Newmont Mining Corp., AngloGold
Ashanti Ltd. and Gold Fields Ltd., has underperformed spot gold
for about a year. Surging costs for fuel, labor and steel last
year, and declines in global stock markets have pushed the
mining index to near a record low relative to the gold price.
We would expect gold companies to outperform the gold
price from here, John Meyer, an analyst at Fairfax in London,
said March 12. Gold miners are not having to compete quite so
much with other miners in terms of skills and supplies. Margins
are relatively good in the industry.

Barrick last month said the increase in so-called cash
costs for mining gold would slow this year. AngloGold and Gold
Fields, Africas biggest producers, expect fewer government-
ordered safety stoppages after boosting worker training and
upgrading mine infrastructure to reduce fatal accidents.
Every dog has its day, said JPMorgans Steve Shepherd,
Allan Cooke and Abhishek Tiwari in a note. South African gold
equities will have their day in 2009. We expect shares to
outperform physical gold during the next six months as the
market starts to reward expanding free cash flow and margins.
---------------------------------

[share_shark] 16/3/2009 08:10

from above article.


Other stocks on the radar of brokers who spoke to TheBull were Alkane, considered interesting for its copper-gold projects in central New South Wales and Centamin Egypt which last month began mining the Sukari Gold Project in Egypt.

[share_shark] 16/3/2009 07:56

Gold has reclaimed its reputation as a haven in uncertain times and is set to run

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By Jan McCallum | 16.03.2009

After failing to shine for 25 years, gold has reclaimed its reputation as a haven in uncertain times and looks set to run for a while. Australian producers are benefitting not only from renewed interest in the metal but also the fall in the local dollar against the US currency.

An Australian dollar gold price of $1400, compared with $900 in US dollars, has thrown a lifeline to many smaller local producers and the stampede into gold stocks means that companies that were struggling six months ago are now able to raise equity and attract investor interest. But like all booms, this one has its pitfalls. Some of those companies have high costs or are mining projects that have previously been worked and have little upside.

"There are a lot of ragtag stocks that call themselves producers," warns BGF Equities analyst Warwick Grigor who in his latest gold sector review says the price could reach US$1300-$1400 this year.

Grigor contends the bull run will continue for the foreseeable future because gold has become the defacto currency of choice. He argues the US dollar is overpriced but there is no confidence in other currencies. "The only alternative currency is gold; that is why we are seeing the gold price rising. Gold is the only credible currency right now."

As opposed to the euphoria of previous booms, Grigor says the rise of recent months has been a "strong and well behaved market responding to the real demand for gold as opposed to a speculative bubble" and says the price will rise as long as the recession continues and liquidity is pumped into economies.

The problem for stock investors has been a dearth of choice. The sector is dominated by the big cap. stocks of Newcrest (market cap. $15 billion), Lihir ($7.4 billion) and the Sydney-based Chinese producer Sino Gold at over $15 billion. South Africa's AngloGold has a listing here and market cap of over $800 million then it's then a big step to St Barbara at $590 million and Dominion at $547 million. The three majors were the first to move on the gold price as institutions and investors jumped into the known, producing companies. Having had early runs, there is a view they are now marking time while interest moves onto the smaller and emerging producers.

But Macquarie Research Equities gold analyst Jim Copland says although the larger companies are pricey now, institutional investors are still ignoring the smaller companies because they rate liquidity over valuation and only want to buy stocks they can quickly exit if they need to.

He can see this changing if the gold sector moves into a medium term phase and the funds become more confident that the price will remain higher, but until then says the funds are sticking with the known despite outstanding valuation at the smaller end.

Copland likes St Barbara, as a locally-listed domestic producer with an Australian-denominated cost structure, Sino Gold for growth, and Kingsgate for growth and value.

Warwick Grigor also likes Kingsgate, which has forecast production of 100,000 ounces a year from its Chatree North mine in Thailand, and Intrepid Mines on its new mine potential. He also likes Perseus Mining, which has deposits in Ghana, Ivory Coast and Kyrgyzstan and is a possible takeover target as it does not have a controlling shareholder.

Grigor sees best value in companies that will become producers of virgin deposits in the next one to two years. "A lot of the brown field operations out there are high cost and have limited upside on the exploration front."

He suggests a conservative investor might consider Newcrest, Lihir and Kingsgate while someone wanting to be more aggressive could go for Kingsgate, Perseus and Intrepid.

Other stocks on the radar of brokers who spoke to TheBull were Alkane, considered interesting for its copper-gold projects in central New South Wales and Centamin Egypt which last month began mining the Sukari Gold Project in Egypt.

Gold stocks can be highly volatile so are not for setting and forgetting. Apart from reacting to volatility in the metal's price, they can also be subject to three phases of investment: the price jumps when a discovery is announced, trades sideways while the resource is proved up and the company raises money to get into production, and then jumps again as the company moves towards commissioning the mine. The skill for investors is to get in at the right phase and monitor the stock so as not to get stuck in a price lull.

Newcrest is Australia's largest producer, at over 868,000 ounces last year and Lihir mined 882,000 ounces, principally from its Lihir island mine in Papua New Guinea, but it should be noted that BHP Billiton is also a significant gold miner at 80,000 ounces, and sits on the world's fifth largest gold deposit at Olympic Dam. Gold comes under BHP's base metals division along with uranium and copper and did not rate a mention in the last financial report. That might change in coming months when it is one product that gives a lift to the bottom line.