A thread set up and dedicated to Gold and Mining stocks.

Gold could be set to bounce up again in the near future and throughout the autumn and winter. Higher oil prices and inflationary worries both here and in the states mean its an excelent hedge against the falling dollar and weaking markets.

Please post which stocks you feel may benefit other posters. Lets all try and make some money from Mining.

cheers GF.

Heres a dated but interesting Broker note on the smaller miners in Russia.

Brokers Crumbs



Date: May 26, 2004



WH Ireland Takes A Look At AIM listed Companies Operating Predominantly In Russia And The FSU.


Very timely of Myles Campion, analyst at stockbrokers WH Ireland , to have brought out his research note entitled AIMing for Russia just ahead of the Troika Log forum on Russian mining companies. As he points out several of these have formed alliances with majors viz Highland Gold with Barrick, Peter Hambro with Rio Tinto and Celtic Resources with Alrosa. These majors, however, could also prove to be competitors as the remaining Russian and FSU assets become harder to acquire as demand, and therefore prices, increase.

As the name suggests he has concentrated on those AIM listed companies whose operations are defined geographically by Russia and the FSU. No mention, therefore, of Avocet with a small operation in Tajikistan or Bema Gold which has interests in South Africa and South America. Russia is now the 5th biggest gold producer in the world behind China. South Africa is still the largest producer , but profit margins are being decimated by the strong Rand. Australias declining output can be attributed to consolidation among the mid-cap producers and majors tying up large tracts of land and mothballing mines. The USA, in 3rd place behind these two, has to contend with problems from increasing environmental legislation and lobbying.

The collapse of the Russian rouble against the US$ back in 1998 offered shrewd operators the chance to acquire and produce from a low cost base in US$ terms, utilising Russias good working mines and large reserves and resource bases. A few North American companies had already received bloody noses out there as a result of not using local plant and expertise, so the door was left open for companies such as Peter Hambro Mining. Celtic Resources had already acquired a slice of the massive Nezhdaningkoye mine in Yakutia and was building assets in Kazakhstan. Oxus Mining came next, but it concentrated on the FSU where it formed alliances with the Uzbekistan and Kyrgyzstan governments. Highland Gold acquired the Mnogovershinnoe mine early on and had turned it into profit by 2001. Trans-Siberian Gold secured two projects in Kamchatka in the Far East of Russia at about the same time and the latest entrant is Palladex which has some highly prospective exploration plays in Kyrgyzstan.

The variables used by WH Ireland are interesting as these are crucial to the valuations put on the companies. The spot gold price is US$413/oz for this year, US$404/oz for next and US$375/oz for 2006. Nobody ever knows if they are right about the price of gold until the due date of a forecast is past, but it is unlikely that any of the companies reviewed would agree with these figures. The reasoning is based purely on golds role as a dollar hedge and much store is set by the recent reaction of the US dollar to non-farm payroll data. No mention is made of Americas humungous current account deficit and Mr Campion has clearly not read Marc Fabers excellent book Tomorrows Gold: Asias Age of Discovery or Colossus: The Rise And Fall Of The American Empire by Niall Ferguson.

The same argument applies to the projected US$/ exchange rates which are put at 1.81 this year and down at 1.50 in 2006. More sense is talked about the Russian classification system for resources and reserves which is a vital factor when considering companies operating in this vast country. WH Ireland reckons that Russian C1 and C2 classifications have undergone rigorous and detailed work and can be compared with proven /probable reserves and measured/indicatged resources on the JORC scale. Russian P1, P2 and P3 category resources, however, have not been included in any production schedule or resource tonnage and grade calculation. Instead they have been given a nominal in-ground value of US$5/oz based on pure blue sky potential, which will doubtless get up Mr Hambros nose.

Speaking of which the only two BUY recommendations in this note are Peter Hambro Mining and Trans-Siberian Gold Hambro on the basis of its increasing production base supplying good cash flow to fund further acquisitions, and Tran-Siberian Gold because it is seen as drastically undervalued given its proposed production route over the coming years starting with the Asacha project for which Standard Bank is to contribute US$30 million in development funding. Palladex is assigned a SPECULATIVE BUY on the grounds of its pure grassroots potential. The other three companies are HOLDS. Celtic will be reviewed again when the details of the Alrosa deal are announced; political turmoil in Uzbekistan put a question mark against Oxus Gold; and Highland Gold looks fully valued as it pushes every penny towards expanding production.

cheers GF.

Interesting because the Sunday newspapers make Hambro a buy..............

SUNDAY TELEGRAPH
Equity View:
* Worth tucking away Rexam at 419.5p for the long tem - Keep buying Friends Provident at 130.25p - Sell JJB Sports at 183.25p - Worth tucking away Johnston Group at 503.5p - Buy Peter Hambro Mining at 452p - Pipex remains a buy at 8.25p - Avoid Teather & Greenwood at 32p (Look Who's Trading)

AND

THE BUSINESS
Benchmark:
* How Sergey Brin and Larry Page bowled themselves a Googley - Collins Stewart Tullett: the Middleweek affair doesn't end here - Retail sales are still growing at an annualised rate of 6.6%


Inside the Market:
* Technology Investor: Belgacom valuation looks undemanding
* Small-Cap Investor: Turbo Genset shares are still speculative
* AIM Investor: Buy Peter Hambro MiningENDS.

Avocet I think is also a good BUY at the moment.

cheers Gf.

Evolution Beeson Gregory on Avocet.

--------------------------------------------------------------------------------
Latest Broker note on Avocet.........
Avocet Mining (AVM) Buy (unchanged)
Mkt cap: 72m Net cash: 9.5m Trading update Price/Target: 70p/105p

Increased control in Tajikistan
Avocet has increased its shareholding in Tajikistan to 75%. It has managed
this at little or no cost through the forgiveness of a debt owed by the
Tajikistan government acquired in the original purchase for $1.
Avocet has secured an additional 26% of the Zeravshan Gold Company
(ZGC), the operating company for the Tajikistan assets, resulting in a 75%
stake in ZGC. . This has been done in exchange for forgiving a debt of $98m
and is the culmination of protracted negotiation with the government, which
holds the balance of 25%. This will mean the company will go ahead with
$10 million investment program to expand production to 100,000 oz per
annum and decrease costs to below $250/oz.
ZGC is a joint venture company formed in 1994. Prior to Avocets acquisition
the Tajikistan government owned 51 per cent, Nelson Resources 44 per cent
and the International Finance Corporation 5 per cent. The 44% interest is
held by Commonwealth & British Minerals Limited (CBML), which has
operating control. In November 2002 Avocet purchased the entire share
capital of CBML from Nelson Resources for 14 million Avocet shares and
cash of $1.45 million. In March 2003 Avocet purchased the IFCs 5% interest
for $409,500 using CBML as the acquisition vehicle. The two acquisitions
gave Avocet a 49% interest in ZGC plus management control. A nominal
amount of the purchase consideration was for the $98 million loans owed to
CBML by ZGC. This entitled Avocet through CBML to 100 per cent of the
cash flows from the operation. The loans were originally advanced to ZGC
by Nelson Resources to fund the reopening of the Jilau open pit and build a
CIL plant. Since the acquisition Avocet has been negotiating with the
government to swap these loans in exchange for an increased stake in ZGC.
The additional 26% will mean the company adds 970,000 ounces to its
attributable resource inventory and 200,000 ounces to its attributable ore
reserves. It will retain control of the cash flows from the operations until the
additional capital investment is repaid; we estimate this to be around 2011.
This is potentially worth an additional 15 pence per share taking $130 to be
the average the market is currently paying for reserves. The increased
shareholding will increase our projected earnings for this year by 10%.
Avocet plans to go ahead with a $10 million capital investment program,
which was announced at the final results last week but was predicated on
having an increased shareholding. The ZGC operation was brought into
production in 1996 at a rate of 100,000 ounces per annum and at costs of
$200/oz. In the interim a lack of investment in the operation and in
exploration saw grades and recoveries decline. Avocet saw this as an
opportunity since Russian estimates of mineralisation in the area, covering
Increased control by 26% in
Tajikistan
Debt owed by government to
operator forgiven in exchange shares
Increased reserves worth 15p per
share
$10 million capital investment to
increase output and expand reserves.

ZGC is a joint venture company formed in 1994. Prior to Avocets acquisition
the Tajikistan government owned 51 per cent, Nelson Resources 44 per cent
and the International Finance Corporation 5 per cent. The 44% interest is
held by Commonwealth & British Minerals Limited (CBML), which has
operating control. In November 2002 Avocet purchased the entire share
capital of CBML from Nelson Resources for 14 million Avocet shares and
cash of $1.45 million. In March 2003 Avocet purchased the IFCs 5% interest
for $409,500 using CBML as the acquisition vehicle. The two acquisitions
gave Avocet a 49% interest in ZGC plus management control. A nominal
amount of the purchase consideration was for the $98 million loans owed to
CBML by ZGC. This entitled Avocet through CBML to 100 per cent of the
cash flows from the operation. The loans were originally advanced to ZGC
by Nelson Resources to fund the reopening of the Jilau open pit and build a
CIL plant. Since the acquisition Avocet has been negotiating with the
government to swap these loans in exchange for an increased stake in ZGC.
The additional 26% will mean the company adds 970,000 ounces to its
attributable resource inventory and 200,000 ounces to its attributable ore
reserves. It will retain control of the cash flows from the operations until the
additional capital investment is repaid; we estimate this to be around 2011.
This is potentially worth an additional 15 pence per share taking $130 to be
the average the market is currently paying for reserves. The increased
shareholding will increase our projected earnings for this year by 10%.
Avocet plans to go ahead with a $10 million capital investment program,
which was announced at the final results last week but was predicated on
having an increased shareholding. The ZGC operation was brought into
production in 1996 at a rate of 100,000 ounces per annum and at costs of
$200/oz. In the interim a lack of investment in the operation and in
exploration saw grades and recoveries decline.

Avocet has invested $3million to
date on improving the processing facilities at the Jilau operation. The
company has successfully tested dump leaching to mine lower grade ores at
low cost and a significant portion of the new capital investment will see
construction of leach pads to increase throughput and improve recovery.
We believe that the additional investment in Tajikistan will improve output
and unlock the latent value in the Tajikistan assets through increased
exploration and the investigation of the Chore and Taror deposits. We are
holding our target price at 105p
John McGloin +44 (0)20 7071 4387 john.mcgloin@evbg.com EVBG is broker to Avocet Mining

Year end Sales ($m) EBITDA ($m) PTP ($m) EPS (c) PER (x) Yield (%) EV/EBITDA (x) Revised?
Mar 03a 48.5 10.2 3.6 3.03 35 11.3
Mar 04a 68.8 21.3 15.6 12.2 10.4 5.4
Mar 05e 72.7 20.2 15.5 11.5 9.9 5.7

cheers GF.

Pretty impressive update from Peter Hambro Mining......................
Peter Hambro Mining PLC
26 July 2004


Peter Hambro Mining Plc

Trading Update

26 July 2004

Highlights

Peter Hambro Mining Plc ('PHM' or the 'Group') attributable production of
72,541 oz of gold for the first half-year of 2004 is 52% up on the same
period in 2003
The Group is on track to meet its 204,000 oz per annum production target for
2004. Seasonal factors are expected to lead to an increase in production in
the second half of the year
Pokrovskiy Mine production at 60,000 oz of gold for the half year is 26% up
on the first half of 2003
Omchak Joint Venture production of 25,081 oz of gold (50% of which is
attributable to the Group) for this period is ahead of expectations. On the
basis of past experience a higher level of production can be expected in the
second half of the year because of the seasonal character of alluvial
production
The opening of the Pioneer pit, which involved pre-stripping and additional
sampling, has supported the Group's confidence in a high-grade deposit. This
is proposed to be mined on a trial basis from September 2004 and the
previously indicated average grade of 14 g/t is considered achievable. High
grades, including visible gold, were encountered in the vicinity of the
planned starter pit
Operating costs per ounce in the first half of 2004 at Pokrovskiy were reduced
substantially, compared to the previous year, due to a full production rate
being achieved from the Resin-in-Pulp (RIP) plant
The Group raised 40m (before expenses) in equity funding for, among other
purposes, the further development of the PHM's existing and newly acquired
assets. Further discussion on development financing is underway with a number
of Russian and International Banks.

cheers Gf

Coal prices have more than doubled in the last 6 months on a massive demand from china and India and this little Coal Miner market cap circa 11 million and established P/E of 13 forward P/E circa 7 is just going on up and up. It exports a lot of its coal to the mentioned areas and a added bonus is the property and land it owns.



cheers Gf.

to top

GD

Did you say that a tip sheet had a long write-up on Trans-siberian gold,can you post it please, TSG is my 2nd largest holding. cheers. Ald.

aldwickk, will do this evening not that much too it though when Ive had a second look.

cheers GF.

Can anyone explain what is happening to AFE and OXS. I understood that once the rainy season had passed they should be news from AFE which should see its price begin to rise but alas I have heard nothing and it seems that no news is bad news and the price continues to drift south.

OXS is showing a similar trend. Is this drift because of lack of news typical of mining stocks? Any views would be welcome

Cheers

B2B

Thanks GF, at the moment i have slightly more diamond miners then Gold, FDI,AFD and a few NML, do you hold any? whats your view? I have a large investment in FDI which i consider to be one of the best small diamond miners around.

B2B, will likewise get back tonight on AFE. Will give winnie a ring and ask him if he has heard anything. Got to go to the rotten dentists now. See ya later.

cheers GF.

Got the gear lads, please just be patient, nothing critical except me and my gob. That dentist was a butcher and thats for sure.

cheers GF.

The latest news I could find on African Eagle...............

However two releases in three days shows African Eagle* (AFE) is not inactive. The statement concerns the copper deposit Eagle Eye in Zambia where African has drilled 4 of a 34 hold drilling programme planned for this summer. The key phrase reads:

Some of the drill cuttings contain visible copper mineralization and the samples are being shipped for laboratory assay. We will await the results keenly over the coming weeks. In addition to the drilling, our latest geological mapping has revealed copper mineralization in the southern limb of the Mweze fold structure, extending the known strike length of the system from 8 to 10 kilometres.

Ends

Visible mineralisation is encouraging but lets not get carried away. We need to wait a few weeks for the assay results and ideally a few more months for more drill holes to be completed before anyone can really start talking about commercial - let alone World Class - deposits. If however Eagle Eye comes even close to living up to the hopes of its supporters in terms of grades, news that the strike length is 25% greater than previously thought is also very positive.

With both Eagle Eye and Miyabi making good progress and an exciting drilling campaign at both ahead over the summer my stance remains "speculative buy" .

cheers GF

Right extracts from the tip sheet item on Transiberian Gold.

Price at the time was 134p.

Claims gold deposits worth 1.2 billion v market cap of 36million.

Highly speculative tip for value investors.

Latest figure of total mineral approx3.2 million worth circa $1.2 bilion at market prices.

Stupendous figures for such a small company.

Says this is generally a pretty low margin business and a lot depends on POG atany one time.

Director speak - " our gold resources after accounting for production costs are worth circa $25 a share and our present market value considerably understatets that".

$25 is about 13 to 14 at exchange rates against a share price of 134p.

Company has noy yet sold one solitary piece of gold.

Company flush with cash but this will be used for exploration and development.

Ultra high risk tip.

Were in Russia so that can have problems.

Speculative Buy. ENDS.


Wont give the tip sheet but it is a specialist one for value investors.


Sounds very promising, might have a few bob on these further down the track.

cheers GF.

Many thanks for your efforts GF.

Much appreciated.

B2B

Many thanks GF

Bisichi up another 4p today. Good stuff.

cheers GF.

Gf
Re post 13. How recent is this news please as I haven't seen anything from AFE since 24 June?
Regards

http://www.africaneagle.co.uk/news-85.html

This is what I had in mind

Is Griffin mining still a gold play? or is it going to mine more zing then gold.

ZAF last month.

cheers GF.

Will do cheers.

GF.

Those massive trades must be Venon Viper [ testex ] adding to he's one share.

Triple Plate could be one to have a look at.

I will post the latest Broker comments monday.

cheers GF.

POG starting to move up on serious volume.......................


Never mind gold's price, look at volume

By John Brimelow
Last Update: 12:01 AM ET Aug. 30, 2004

NEW YORK (CBS.MW) -- Gold is back above $400 (again). Last week, it seemed to stall (again). But look below the surface.

Peering closely, I see three factors at work:

First, India, the world's biggest gold importer, was unfalteringly a buyer right up to the high of $412 this past week. I gauge Indian off-take by looking at the local premiums. (Read related column.)

Previously, Indian buying has been choked off at these levels. And the busy season for gold purchases in India is only just beginning.

Inevitable outcome: A great deal of metal will go to live in India this fall -- unless world gold moves up sharply from the $400-plus level.

Second, the Middle East also appears to have become gold-hungry. It's more difficult to follow, but those local premiums I can access have started to suggest this.

So do recent reports of quantities traded. Turkey, for instance, imported a record weight of gold in July.

Conclusion: the physical demand for gold is ratcheting up to support the price.

Thirdly, and below the surface, the past two weeks have seen extraordinary increases in Comex (New York Commodities Exchange) open interest, which have accompanied gold price recent moves.

"Open Interest," is the total of futures contracts outstanding. An increase occurs when a buyer bids to acquire a contract -- a promise to deliver -- and is accommodated by a new seller. Or, when a short seller is accommodated by a new buyer.

Since Aug. 12, open interest has gone up 24.6 percent, 54,749 contracts, equivalent to 170 tonnes of net gold buying. This includes one day, Aug. 19, where the rise was apparently the second highest on record.

In other words, gold volume has been huge. It's just the price that has been boring.

The surge in open interest tells us good and bad news. Good: huge buyers have appeared. Bad: so has a huge seller(s).

Who are the buyers? The most popular theory among gold bears: a big mining house trying to eliminate a hedge position.

I think this is unlikely. No one producer is big enough.

My guess: Some U.S. hedge funds are buying gold because they think the geopolitical/economic is unstable. So are large operators from elsewhere, partly responding to the same anti-American sentiment which that is driving the retail Middle Eastern markets.

Next question: Who is the seller? After all, someone has to have taken the other side of the trades.

To me, it has to have been a central bank. There is simply no other long (or short) around with this kind of size, or courage.

There is increasing evidence that the gold market is being manages by the official sector. Imperative reading for serious gold followers is money manager John Embry's discussion of gold manipulation at Sprott.com.

Ultimately, central bank supplies will be exhausted. Revco Research, the adroit Chicago-based traders, bravely went long on Friday, reasoning that selling of this magnitude cannot persist.

Gold's price breakthrough will be fortune-making. In the meantime, a modest rise to a level which will temporarily slow physical buying is very likely.

If gold passes its $431 March high, it will be at a level not seen since the mid-1980sENDS.

cheers GF.

avocet mining will move up soon as long overdue IMHO. its gone up quite a bit in recent months

Yes I agree Scotinvestor and I once again hold this one.

Evolution Beeson Gegory have a 1 plus target on it.

cheers GF.

The comparitive charts showing percentage movement over 1 year for

1. Small Gold Miners

2. Medium Sized Miners

3. Small Gold Exporers.



1.

Blue = Golden Prospect, Black = Avocet, Red = Oxus


2.

Blue = Peter Hambro, Black = Randgold*, Red = Highland Gold

* Randgold as had a share split.



3.

Blue = Cambridge, Black = Caledon, Red = Centamin.


cheers GF.

Goldfinger.

Did you buy any TSG.

Not yet aldwick Im still waiting for POG to rise higher.
cheers Gf. In fact lets show TSG compared to the other gold explorers.



Black = Caledon, Red= Trans Siberian Gold, Blue = Cambridge.

cheers GF.

NB, if anyone wants a comparative gold chart putting up let me know, but remember 3 is the limit on one post.

cheers GF

goldfinger, i dont care what evolution say about AVM's price. I only care about what i think is right. All these brokers and shares magazines are a load of crap.

I expect AVM in next couple of years to be around 2 plus

Fine Scotinvestor thats why we live in a democracy. I hope you are right.
cheers GF.

i was only stating what i thought of them. Yes, we do live in a democracy which we should all be truly thankful.

But most of these brokers only look at things no more than once a year. They dont give a stuff about their clients

Avocet price comparison with other junior miners earlier in the thread.

cheers GF.

I would like to see the comparsion between junior miners and the gold price chart, TSG seems to be linked more closely then most to the price these days.

anyone heard anything positive about MANA lately?

aldwickk, sorry the software cant help with that one.

cheers Gf.

Back to top for Caledon fans.

cheers GF.

Avocet rising nicely at the moment.

cheers Gf.

If there is anybody in Medoro the gold explorer I was told late this afternoon that the Sargold deal would go through in the next few days.

cheers Gf.

South African Resources, (SFU) have been ticking along quite nicely recently. Are probably sitting on quite a pile of Platinum, (and Gold), and have been growing at a considered rate. Some very experienced mining professionals also added to the board in the last few months.



Southern African Resources PLC
03 August 2004

Southern African Resources Plc: SFU / Index: AIM / Sector: Exploration

3rd August 2004
News Item

SOUTHERN AFRICAN RESOURCES LOCATES PGE+AU
DRILL TARGETS IN BOTSWANA AND MAKES OFFER FOR REMAINING TAU MINING SHARES



Southern African Resources Plc ('SAR' or 'the Company'), through its Australian
exploration subsidiary Tau Mining Ltd ('TML'), has identified significant drill
targets for Platinum Group Elements + Gold ('PGE+Au') on its Molopo Farms
Project in the Molopo Farms Igneous Complex ('MFIC') in southern Botswana. The
Company is now commissioning a drill contractor and expects to commence drilling
on a first-pass reconnaissance programme in August.



Following the interpretation of airborne and ground electro-magnetic surveys on
the property, TML has identified a number of targets to be drill tested. These
are situated in the lower part of the MFIC, which is a layered ultra-mafic to
mafic succession. The targeted area is similar in age and litholgy to the
Bushveld Igneous Complex ('BIC'), recognised as the world's premier PGE district
and situated approximately 200 kilometres to the east in South Africa.



The detailed airborne survey area at 250 metre line spacing was carried out
earlier this year along the northern margin of the MFIC. The new aerial
electro-magnetic survey technology used appears to have penetrated the veneer of
Kalahari sand material and has identified conductor zones that are ideal hosts
for PGE and nickel mineralization.



The targets extend over an unusual 26 kilometres in length within this detailed
survey area. Additional targets were identified on reconnaissance lines
throughout the tenement area, which extends over 6,185 square kilometres. Recent
exploration by TML has also included the update and verification of its drill
hole database, and a new integrated geophysical and geological interpretation.



The Molopo Farms Project comprises 10 Prospecting Licences in a first-tier
mining country. The area is considered to be a key exploration district by TML
due to its relatively under-explored nature and the presence of several similar
geological characteristics to the PGE-rich BIC in South Africa, where SAR
already holds significant properties. These include the flagship 4,600-hectare
Leeuwkop 402JQ, the 460-hectare Wolwekraal 407JQ and the 605-hectare Kareepoort
407JQ properties. Recent resource estimates by independent consultants Snowden's
have put the geological potential of this property package at up to 125 million
ounces of PGE+Au, making it potentially one of the largest known platinum
deposits in the world.



Southern African Resources CEO Roy Pitchford said: 'SAR is very keen on
advancing the exploration of its Molopo Farms Project. It has reviewed the
survey data, which was very encouraging, and as a result, a number of drill
targets for the first drill campaign have been defined. SAR believes that there
is huge potential on The Molopo Farms Igneous Complex, which bears geological
similarity to the Bushveld Igneous Complex, the world's most important platinum
district, and view it as one of the most prospective platinum targets in
southern Africa. While there can be no assurance of success, SAR hopes to locate
deposits that will significantly increase an inferred resource base that already
has the potential to emerge as one of the largest platinum group metals
inventories in the industry.'



As anticipated in SAR's announcement of 6th July 2004, the formal Offer Document
for the acquisition of the remaining Tau Mining shares was lodged on August 2nd.
Accordingly, provisional application is being made for the admission to
trading on AIM of up to 10,775,000 ordinary shares of the Company being the
maximum number of shares to be issued if all Tau Mining shareholders accept the
Company's takeover offer.



**ENDS**

Issued on behalf of Southern African Resources Plc by St Brides Media & Finance
Ltd, 46 Bedford Row, London WC1R 4LR.

Contacts:

Roy Pitchford Southern African Resources Plc Tel: 0845 108 6060
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477

I have a small interest in this company.

Regards

PTH

Thanks PTH (sfu) look very interesting indeed.

cheers GF.

Note Anglo Pacific have a stake in Kirkland Lake, lovely.



Kirkland Lake Gold Inc
02 September 2004

September 2nd, 2004
EXPLORATION OVERVIEW FOR YEAR ENDED APRIL 30TH, 2004

PROVEN AND PROBABLE RESERVES INCREASE 28%

Kirkland Lake Gold Inc (the 'Company') is pleased to present its overview of
exploration efforts and expenditures in its 2004 fiscal year, which ended April
30, 2004 and new year-end (April 30, 2004) reserve and resource estimates for
its operations in Kirkland Lake, Ontario.

Exploration Overview

'The first half of the year was spent completing the compilation work necessary
for the foundation of the three year, $21 million exploration campaign announced
October 21st, 2004' said Michael Sutton, Chief Geologist. 'Given that we did not
begin aggressive exploration of the property until the second half of our fiscal
year, we are pleased that in the last 6 months, 269,814 tons of ore was added to
reserves, grading 0.47 ounces of gold per ton (138,948 ounces) for less than $10
per ounce. Due to the wide-spaced drilling in the early phases of the major
drilling campaigns underway an increase in resource levels was not expected
until this fiscal year and beyond.'

During the second half of the 2004 fiscal year, the Company began the first six
months of a major three year $21 million exploration campaign. The increase to
the reserves was a total of 269,814 tons of ore was added grading 0.47 ounces of
gold per ton (138,948 ounces, or 28%). Since the December 2002 reserves were
released, Kirkland Lake Gold has increased the reserves by 78%.

An extensive definition drilling campaign was carried out in the first six
months of the 2004 fiscal year. An on-going expansion of mining activities at #3
shaft, #2 shaft, and at the Lake Shore Ramp required an emphasis on definition
drilling. The 2004 accomplishments achieved in the definition drilling enabled
the Company to lower the definition requirements in the 2005 fiscal year
allowing the re-allocation of resources to the exploration program.

Drilling has resulted in the addition of 132,000 ounces of gold in reserve and
resource categories (plus 32,000 ounces inferred), virtually all of which was
found in the last six months. The exploration programs that were targeting the
large-tonnage potential structures did not begin until the end of 2004 fiscal
year, are now in full operation, and are planned to be developed over the next
21/2 years. The discovery of a completely new ore trend - north-south, rather
than the classic east-west of the Camp - beyond the original goals of the
exploration program opens up substantial areas for new resources to be added.

The finding cost per ounce found for the mine site exploration was $9.41.
Including grassroots exploration drilling away from the Mine, the figure is
$12.30 per ounce. The newest discoveries to the south of the Mine have a cost
per ounce found of $6.44 (including the cost of drilling a portion through to
reserve).

'In last fiscal year's new discoveries, resources were quickly converted to
reserves and remain open for reserve expansion this year. The Kirkland Lake Camp
has tremendous exploration potential, and as the new South Zone attests to, the
cost per ounce found can be very economic' said Stew Carmichael, Chief
Exploration Geologist.

The first six months of the drilling campaign has been successful in laying the
foundation for the next phase of exploration. The campaign is on target with the
goals of drilling 500 -1,000 foot centres on aerially large, ore-bearing,
unexplored, vein systems and structures that have been identified on the
properties in Kirkland Lake. These targets have a combined potential to host
15,000,000 tons of ore (using a 25% success ratio although the Company has
demonstrated better than the historical 25% success ratio). There will be
follow-up of ore intersections to bring in new resources and reserves (50 - 200
foot centres). For the 2005 fiscal year the Company has budgeted exploration
expenditures of approximately $9,230,000.

A total of 231,390 feet were drilled in the one year period (Apr 31 2003- Apr 31
2004). Of the total spent on drilling ($3,147,000), $1,700,000 was exploration
drilling. This exploration covered various surface targets, the Narrows/'05
Break to the north, the D vein, the newly-discovered South Zone, and many
newly-discovered veins throughout the property. Most of the surface exploration
focused on grassroots targets.

Resources & Reserves Increase

The Company has calculated reserves and resources as of April 30, 2004 which are
summarized in the following table.

TONS GRADE OUNCES
(ounces
per ton)
Reserves
Proven 586,400 0.42 248,900
Probable 735,200 0.52 381,200

Total Proven + Probable 1,321,600 0.48 630,100

Resources
Measured 923,300 0.37 337,300
Indicated 2,329,500 0.30 708,800

Total Measured + Indicated 3,252,800 0.32 1,046,100

Total Proven + Probable + Measured + 4,574,400 0.37 1,676,200
Indicated

Inferred Resources 642,800 0.30 191,300

Notes:
1. The reserves and resources are estimated using the polygonal method.
2. All intersections are calculated out to a 5.0 foot minimum horizontal
mining width.
3. Dilution is added to reserves at varying rates depending on mining
method, and the width of the ore. Dilution in the reserve estimate overall
averages 26% at 0.02 ounces of gold per ton. All higher grades are cut to
3.50 ounces of gold per ton. The cut-off is 0.25 ounces of gold per ton
over the horizontal mining width.
4. The area of influence of the proven and measured categories are 30 feet
from development chip samples, probable and indicated categories are
50 feet of radius from a known sample point (drill holes); inferred is
another 50 feet of influence.
5. A 94% tonnage recovery is used. Continuity of the veins appears very good.
6. The assumptions used include $375 U.S. per ounce of gold, and an
exchange rate of $0.75 Canadian= U.S. $1.00 ($500 Canadian per ounce).
7. The Company is not aware of any environmental, permitting, legal,
title, taxation, socio-political, marketing or other issue that may
materially affect its estimate of mineral resources.
8. Mineral resources which are not mineral reserves do not have demonstrated
economic viability.

The full breakdown of the reserves and resources can be seen on the Company's
website.

Mining Now Self-Sustaining

Production has achieved continual increases both in terms of tons and grade
since resuming earlier in the fiscal year. Production tonnage has increased at a
constant rate of at least 1,000 tons per month. The extensive mine dewatering
campaign has a negative impact on the mine plan. The development tonnage
necessary to re-access the stope blocks has had the affect of lowering the grade
to date. This quarter is slated to have full production for the first time since
Kirkland Lake Gold began rehabilitating the property.

New Zones Found to the South of the Mine

The South Zone has added a new outlook to the Kirkland Lake Camp. Not only is it
a different style of mineralization (wide sulphide system), but it is running
north-south as apposed to the east-west nature of the mineralization from which
24 million ounces of gold have been mined to date in the Camp. The D Zone was
discovered last year and it too is north-south trending. At least four other
mineralized zones have been discovered to the south of the Mine.

About the Company

The Company purchased the Macassa Mine and the 1,500 ton per day mill along with
four former producing gold properties - Kirkland Lake Gold, Teck-Hughes, Lake
Shore and Wright Hargreaves - in December 2001. These properties, which have
historically produced some 22 million ounces of gold, extend over seven
kilometers between the Macassa Mine on the east and Wright Hargreaves on the
west and for the first time are being developed and explored under one owner.
This camp is located in the Abitibi Southern Greenstone Belt of Kirkland Lake,
Ontario, Canada.
The results of the Company's underground diamond drilling program have been
reviewed, verified (including sampling, analytical and test data) and compiled
by the Company's geological staff (which includes a 'qualified person', Michael
Sutton P.Geo. for the purpose of NI 43-101, Standards of Disclosure for Mineral
Projects).

The Company has implemented a quality assurance and control (QA/QC) program to
ensure sampling and analysis of all exploration work is conducted in accordance
with the best possible practices. The drill core is sawn in half with half of
the core samples shipped to the Swastika Laboratories in Swastika, Ontario or to
the Macassa mine laboratory for analysis. The other half of the core is retained
for future assay verification. Other QA/QC includes the insertion of blank
(non-mineralized) sections of core, and the regular re-assaying of pulps and
rejects at alternate certified labs (Polymet, Accurassay). Gold analysis is
conducted by fire assay using atomic absorption or gravimetric finish. The
laboratory re-assays at least 10% of all samples and additional checks may be
run on anomalous values.

The Company's Kirkland Lake properties are the subject of a report prepared by
Roland H. Ridler, B.A.Sc.(hons.), M.A.Sc., Ph.D.(Econ.Geol.), P.D., entitled
Kirkland Lake Mineral Properties (Macassa Mine, Kirkland Lake Gold, Teck-Hughes,
Lake Shore, Wright-Hargreaves dated November 30, 2001. The Company's Macassa
Mine Property is the subject of reserve reports prepared by

David W. Rennie, P.Eng. and Richard E. Routledge, M.Sc., P.Geol.
entitled Review of Mineral Resources and Mineral Reserves of the Macassa
Mine Property, Kirkland Lake, Ontario Prepared for Kirkland Lake Gold Inc
dated December 23, 2002 .
Michael Sutton P.Geo., and Stewart Carmichael, P.Geo. entitled Mineral
Resources and Mineral Reserves of the Macassa Mine Property, Kirkland Lake,
Ontario (Kirkland Lake Gold Inc.) as at April 30, 2003 dated August 30, 2003
Michael Sutton P.Geo., and Stewart Carmichael, P.Geo. entitled Mineral
Resources and Mineral Reserves of the Macassa Mine Property, Kirkland Lake,
Ontario (Kirkland Lake Gold Inc.) as at April 30, 2004 dated August 31, 2004


All of these technical reports have been filed on SEDAR (
www.sedar.com
< http://


www.sedar.com>),
except the 2004 report which will be filed within 30 days.


For further information, please contact:
Brian Hinchcliffe Investor Relations
President Scott Koyich
Phone 1 705 567 5208 Phone 1 403 215 5979
Fax 1 705 568 6444 E-mail:
info@klgold.com

cheers Gf.

Anyone know why Patagonian Gold blasted up 16% today? Also Zincox jumped 10%. Maybe time to go back into this GF.

rgrds
gk

Hi Gallick sorry I dont know, anyone else who can help out???????.

cheers GF.

Watch this one very carefully, it could become another stock market darling..................................................

Vane
MINERAL exploration company Vane Holdings has entered into a option agreement with Minera PAFEX, SA, to acquire the Mina Charay gold and silver prospect in the State of Sinaloa in western Mexico. Vane has planned a drilling and sampling programme on the prospect to take place throughout October and November and expects to announce the results of this programme early next year.


Daniel Stewart

cheers GF.

>> GF

Could just be the commodity bandwagon. I notice a Canadian organisation have taken a slice in zincox, and I have had my eye on PTG for some time.

The interesting thing about these stocks is that sometimes taking a flyer is not a bad idea. ie somebody knows something, but it may not constitute official news and therefore nothing is visible. Both these two are on the bounce, might be worth a punt (with the long term backdrop that commodities WILL rise further). Did you notice the bounce in BAU recently (I imagine you did as you are holding)?

PS. Liking the look of APF the more we go along.

rgrds
gk

Hi gallick,

I think we are just about at the crossroads in the markets at the moment, either we break out and up significantly or we go the other way.

Im well protected for the downside as I have previously posted including Bema and other small gold miners.

I held Zincox for about 2 months earlier in the year when that bloke wyatt whatevet tipped it but it moved downwards with the Zinc price later on and I sold.

I suppose I will have to have another look at that one.

APF and BISI are real gems, just more or less keep going up day on day, its really nice.

cheers GF.

ps, by the way been told this evening that UK Coal is going to have in the very near future a full re appraisal of all its freehold land and property so be ready to buy as an asset play rather than a mining play if the update comes out well, remember this one has all its coal sales until mid 2005 already locked into contracts at low coking coal prices - MUGS.

AFE is flying this a.m.

Yup must be on the back of news due out next week.

cheers Gf.

This was mentioned in t1ps.
On Wednesday, www.t1ps.com revealed that Chaco Resources, the cash shell that used to be known as Goldmines of Sardinia, may have a second deal in the pipeline after a reversal of Paraguayan oil exploration acreage into the group. Market whispers suggest that the second deal is in Libya. After we broke the news to a wider audience here on UK-Analyst, the shares are rose 0.35p to 2.17p. Thursday's scoop from the UK's top financial website was that African Eagle is likely to be announcing some cracking drilling results from its Eagle Eye copper deposit in Zambia as early as next week. African Eagle shares jumped 1p to 15.25p on the revelation. For more hot tips like these click here.

I hold a few New Millenium (NML) shares and they are currently waiting for imminent good news on their Angolan project. However, as a relative beginner, I would greatly appreciate the opinion of more experienced investors in the mining sector.

Well, lads and lasses, what do you think?

Guru,

I hold a few NML.

they are an AIM traded Australian company, with prospects in Greenland (diamonds / nobium), and Angola (diamonds).

They are currently concentrating on their C9 concession in Angola, as it offers a quick route to cashflow, that can be used to advance the Greenland properties.

The history is that NML promised to have equipment onsite in April, and be mining soon after. The reality is that schedule was far too ambitious, and changes were made at the top of the company after this failure.

The current situation is as follows;

NML have purchased mining equipment for the Badenhorst brothers, Kimberley S.Africa. A small dscounted placing was done to finance this, which did not go down too well with the current shareholders, but we have moved on now.

The equipment was shipped from Cape Town to Angola, where it has now cleared customs at quayside, and is due to depart today in a convoy of 40 trucks for the other side of the country, journey time around 5 days. The final few kilometres are through difficult terrain, and the route requires some "gardening" to be passable, so it will be slow going. NML are doubling up with another mining company for the convoy for "safety in numbers".



Angola has internal customs, so maybe a few hurdles to pass yet.

Once onsite, mining is due to commence stright away, and we hope for decent grades from the off. The Badenhorst brothers are experienced miners, and "can't wait to start" according to NML!

This is clearly a speculative play, with additional country risk, but, IMHO, is a reasonable speculation within a balanced portfolio.

If you have just invested, there shouldn't be too long to wait for commencement of mining, so there is a reasonable chance of some immediate upside in the SP.

NML are also in discussions about further joint ventures in Angola.

I hold, and am considering adding as mining approaches, but nothing is certain until those initial grades are announced, so DYOR, and good luck with whatever you chose to do.

Further information can be obtained at the company website ;

http://www.new-millennium.com.au/index.php

Andy.

Guru,

This has just been posted on another BB, by an infomed poster.

------------------------------------

4-9-2004

NML and JCI are sharing a convoy for security reasons, and NML has been held back a few days by JCI as their preparation and equipment delivery was a bit behind. This is a seriously massive mobilisation of men and equipment - a 2km long convoy of 40 big semi trailer trucks and hundreds of men and security accompanying. In fact this is the biggest peacetime convoy to leave Luanda, ever!

It will be a week up to site at least, and then demobilisation, assembly and then production begins. The fact that a major like JCI is joining forces with NML is extremely interesting, and demonstrates to me that management are taken seriously and this is going to be a decent sized operation. I have been part of a big shipment of stuff before in Australia but this is another order of magnitude greater - it is a serious logistical task and there is a lot of big kit being moved on these monster trucks. This will be the fifth mining operation in the country and the government is supplying the security (ie guaranteeing that their interest in the project becomes a production share) and ensuring smooth operation of the convoy. We are only a matter of days away from NML issuing some serious news and getting a decent rerating from the market as a result.

Intercept,

That's a very harsh statement IMHO, they were certanly guilty of being "overly optimistic", but more than that you can't say for sure.

Changes at the top resulted from that let down, and now they are doing it properly it would appear.

The facts are, They have bought the equipment, it has been shipped from Cape Town, S.Africa, to Luanda, Angola, then cleared customs, and been loaded upon a number of flat bed trucks for the trek to C9, a 4 - 5 day jouney across Angola.

The convoy was due to leave yesterday, so that's where we are now.

The Badhorst brothers are reputed to be experienced alluviam miners, and are onsite.

Not too much time to wait for initial grades now, I'm holding, probably adding, in the realisation that there is risk, and a good potential reward, and my position size within the portfolio reflects that.

I figured it was you.

Every one to their own investment style I suppose, and far be it from me to pffer any advise, but not sure what you're achieving by buying single 6p shares and paying dealing costs each time.

You seem very bitter about NML, did you take a hit early this year?

Is it Testex again with yet another name change? lol

intercept,

Well I am not blinkered, and do change my view from time to time, when circumstances change.

I still beleive NML are on track to be mining within the next month or so, and we just need confirmation of the grades IMHO.

Please feel free to tip away, I have an open mind.

I have started an NML thread, to avoid dominating this thread with discussions on one share.

Bisichi just goes from strength to strength as does Anglo Pacific on the ever increasing coal price. Rumoured that Cambrian Mining will have a pit mining and selling coal in the last 1/4 of this year.

Well worth further investigation.

cheers GF.

Almost 2 Million shares traded on AFE so far today. Does anyone know what is going on?

Further to my recent post regarding South African Resources (SFU), the SP continues to rise steadily, up 6% today.

Regards

PTH

hi guys
have you got any views about bhp billiton. it seems the share price is stuck at around 520p. i have got a bet (BUY) on it 533-503. I THOUGHT THE PRICE WOULD RISE QUITE QUICKLY DUE TO VERY GOOD COMMENTS AND RECOMMENDATIONS. PLEASE FEEL FREE TO SHARE ANY VIEWS.
CHEERS

Be carefull Zeb, have a gander at the home page on here and the outlook from the US second item down, a suprise profit warning from commodity and alluminium giant Alcoa. Could affect the sector
cheers Gf.

hi goldfinger
thanks for replying. There will be as well a report about the china's growth state on monday which will be very important for the mining sector. I personnally think there will be a little slowdown . IF there is a downtrend hope 505 p (bhp billiton) will be a good support.

cheers

Seb thanks for that info on the China report , I wasnt aware and I have a fair % of my portfolio in metals. I will be looking out for the report.

cheers GF.

Feature Story
Date: September 09, 2004

Anglo Pacific Now Has To Get Real Value For Its Unlisted Investments In Canada

It is never the easiest of tasks to dissect the results from Anglo Pacific Group and the interim results to end June show the pattern has not changed. Profits before tax were up from 1.74 million to 2.7 million, but 718,000 of this increase was accounted for by the sale of fixed assets. Peter Boycott, the chairman, says that With the increasing demand for energy products from China, India and the Far East, the outlook for coking and steaming coal prices looks to remain buoyant. Developing our coal energy interests in Canada and elsewhere will remain a major focus for the group. The coal royalties from two mines in Queensland, Australia, are the engine room for the company but they only increased by 510,000 so presumably the full impact of high coal prices is yet to come.

The other problem of which investors have to be aware is that the royalty interests do not necessarily provide a steady and rising stream of income. They arise when the two producers are mining from the private rather than the Crown areas of the mines and are paid in arrears. Last year mining at the Kestrel mine operated by Rio Tinto and the Crinum mine of BHP Billiton took place predominantly in the Queensland Governments area of the coal deposits. This year it was expected to switch back again, but there is not too much evidence of this as yet. The directors are maintaining their strategy of paying out between 40 and 60 per cent of net royalties after 30 per cent Australian tax as dividend, but will not make up their minds about the interim until November. Provided the mining takes place in the private areas and sales of coal get full benefit from higher prices, investors could be in for a treat. At the beginning of August a final dividend was paid for the year to end December 2003 which makes clear just how much in arrears the word arrears implies.

The company lays great store by the value of these coal royalty interests which rose from 44.3 million to 47.1 million in the half year. Anglo Pacific also has a 65 per cent interest in the 665 million tonne Groundhog coal deposit as well as owning the 121.5 million tonne Trefi deposit in the well established Peace River coal field. Both of these are in British Columbia and work is continuing on them encouraged by the much increased activity in that part of Canada during the last six months with projects going ahead at Perry Creek, Burnt River and Willow Creek amongst others. With higher world prices for metallurgical, thermal and domestic coal, Groundhog and Peace River have now become valuable assets which are still carried in the books at negligible cost. Discussions on developing them with joint venture partners continue, but it has to be admitted that Groundhog is in a pretty remote area.

In addition the company has a 15 per cent interest in the Merritt coal bed methane project. Coal bed methane is an emerging industry in Canada and the US is well ahead of it in the development of natural gas resources. Merritts resources consist of 31 billion cubic feet of coal bed methane and 218 million tonnes of bituminous grade coal. This interest is in process of being reversed into a Canadian quoted vehicle where funds will be raised locally to take the projects forward. The background for developing Merritt remains positive as the move will put real value on the stake at a time when the directors have seen a distinct shift in sentiment towards coal energy and oil in the first half of 2004.

In the period under review Anglo Pacific therefore took some profits on its gold and precious metal investments as indicated by the sale of fixed assets and has increased its exposure to base metals as well as coal and coal energy. Few details are given, but certainly the investment in Kirkland Lake Gold was reduced. The company still has a holding of nearly 20 per cent in Platinum Australia , however, which has recently announced projects in South Africa. These involve the process technology developed at the Panton project in Australia which produces a PGM concentrate of a grade high enough to go direct to refiners, cutting out smelting. As a result the technology could produce good revenue returns without the requirement for substantial inward investment. It is somewhat ironic, nevertheless, that a company which has tended to shun South Africa finds itself transported there, like it or not, as it would be difficult to liquidate this holding without crystalising a significant loss.

The company has a number of stakes in other quoted mining companies which are concentrated in North America, Canada and Australia. These include a stake of nearly 20 per cent in Canadian listed Alto Ventures for which the interest in the Oxford Lake gold property was swapped. Together with the coal and coal energy projects in Canada these were valued at the end of June at around 7.45 million net of the realised profits. Cash amounted to 1.5 million with no borrowings and unused bank facilities of 300,000. Anglo Pacific is therefore in a strong financial position and still has 29 million of tax losses to be carried forward against capital gains. For its next trick it has to come up with a deal, or deals, which will put real value into its Canadian unlisted interests.

cheers Gf.

All blue for NML and TSG this morning, lots of small buys, but no trades for POG so far, CDN is a share that can drive investers mad, with these kind of shares its just a waiting game and investers in these shares not like waiting.

NML up 0.25p

Hows this, from todays Investors Chronicle

149p - Oil & gas - Emerald Energy is not an obvious stock to buy from among the list of small oil explorers. Its recent history has been marked by a series of debacles and the company almost went under last year. However, there are reasons to believe that a new management team has the company on an even keel, and that there could be considerable upside.

This is the story so far. A previous management pursued a strategy of high- cost, high-risk exploration in Colombia. They found oil alright and, by 2000, the Gigante 1 well was producing at 3,000 barrels a day. Then it blew up, killing a worker and destroying the production rig. The loss of production cut off cash flow and crippled the company's finances. This time last year, Emerald was in serious danger of going bust.

At that point, Alastair Beardsall approached Emerald Energy with a rescue package involving a rights issue backed by Russian investors. One condition was that the entire board resigned. They had little choice, and the guard was duly changed last August. The current board includes Mr Beardsall as chairman and chief executive, industry veteran Paul Ellis as chief operating officer, and three senior non-executives, including former National Power boss Keith Henry.

The new team has got off to a sensible start. They have cut costs hard - the annual report is now monochrome and factual - and the group hopes to persuade its 28,000 or so shareholders to accept more electronic communication to cut down on administration costs. They have abandoned the high-risk strategy of deep wells, in favour of shallower ones in established areas.

Emerald's first new exploration well in years, Campo Rico 1 also in Colombia, has now struck oil and is producing more than 1,000 barrels a day. The company was also awarded a new 'association contract' covering a different licence area. So what was once a single-well company now has two producing wells and three licence areas. With some degree of credibility restored, Mr Beardsall again came to the equity markets. Emerald has just raised 9.3m to finance further exploration drilling. The shares have also undergone a 100-into-one consolidation.

Emerald plans to drill at least two more exploration wells on Campo Rico this year, and possibly an exploration well on the Fortuna prospect in the first quarter of next year. The company currently has 11m barrels of proven and probable reserves, while Mr Beardsall thinks he could add another 9m this year and much more next year. Longer term, there is the possibility of another well at Gigante and of exploration outside Colombia.

This is where Waterford Holdings might come in useful. Waterford, which is controlled by Michael Kroupeev, a young Russian entrepreneur, holds 46 per cent of Emerald. Mr Beardsall stresses that Waterford is a passive investor and does not get involved in running the company. But, if Emerald were to seek opportunities in the former Soviet Union, it would be logical to use Waterford's connections there.

Obviously, a company that has come so close to failure is a risky investment and Emerald comes with a prominent health warning - it's not for widows and orphans. It is still small, and depends heavily on operations in a tricky political and operational environment. It faces the geological risks that are inherent in oil exploration. It barely registers with City analysts. And its biggest shareholder - Waterford - is likely to want an exit at some stage. But the company now looks financially stable and is back doing what small oil companies should be doing. In an overheated part of the stock market, Emerald looks like a little gem of a recovery story. Buy.

Your on the wrong thread this is gold & mining.

Hi all, you guys have any thoughts on AGU?

http://htt://aol.fool.co.uk/valueinvesting/2004/vi040917

An interesting feature from the fool site............

VALUE INVESTING
A Value Play On Gold

By Stephen Bland (TMFPyad)
September 17, 2004


Gold exploration and Russia. Two features of a share which even individually are not exactly guaranteed to lead to a low-risk situation. Combine them and you have an ideal and powerful high-risk play. Established gold mining is risky enough. Exploring for the stuff whilst not yet having mined an ounce is infinitely more so for an investor. Stick it all in Russia, a country not exactly famed for centuries of political stability, and you have the wonderful poker hand that is Trans-Siberian Gold (LSE: TSG). (www.trans-siberiangold.com)

And yet, I wrote about this company for readers of my Value Investor newsletter in the February 2004 issue as a speculative value play. However, I did lay on with a trowel the fact that it was highly speculative. So, speculative certainly, but a value play?

It had no profits and no dividends. It did have net cash and it did have assets in excess of the share price though. Forget the cash, it will likely be consumed to fund the mining exploration and the other assets consist principally of the estimates of gold reserves in the areas it has licence to mine. Those estimates are notoriously flexible as I have noted from observing the history of mining shares, starting in my case with Aussie nickel mines back in the late sixties. But it's an old, old story.

My (highly speculative) value proposition was based on the gold in the ground being estimated to be worth well over the share price. Since February, the news has been good. The shares are now around the same level as the newsletter's buy price, about 131p, though they have fluctuated a lot in between.

The major news has been that Anglogold Ashanti (LSE: AGD), one of the world's largest gold mining groups, will subscribe a total of 17.6m to acquire a 29.9% stake in TSG in two tranches at prices of 136.95p and 149.4p thus adding money and technical support and increasing confidence that TSG will reach production. This important move increases my confidence in the shares too, if a company like that is willing to come on board. TSG has as result in my view stepped a little away from the sort of fantastically risky wildcat mineral exploration world that it inhabited and more into the established mining club. Only a bit more, but more.

Other news on the exploration indicates much higher than previously estimated gold resources. Total resources are now said to be 3.7m ounces, a lot more than was stated at the time of the listing on AIM in November 2003 and in an update issued January 2004.

Mining shares are influenced heavily by the market price of their mineral. This relationship can be very geared and moreover, that gearing is often emotional. By this I mean that the shares may be driven up and down by movements in the mineral price which won't necessarily have a similarly proportional effect on profits.

TSG is no exception and any strong movement in the gold price will likely affect the shares in a geared fashion, the price magnifying any large rises or falls in the metal. It all adds to the speculative features of this share. Added risk, but potentially added reward.

Summing up, there has been nothing but good news coming out of TSG since I first wrote it up and yet the shares have not really taken this into account to date. However, readers must note that despite all this, make no mistake, TSG still remains an extremely speculative value play. Don't go in if you can't live with that. If you do go in, be prepared for a roller coaster ride.

cheers GF.

Could be an interesting investment, certainly one for the watch list.

Dig in for profit
Investment extra, Daily Mail
12 September 2004

OAL and investors have been uneasy bedfellows. But soaring energy prices are changing that, lifting shares in UK Coal from 120p to 165 1/2p in a year.


The industry's history is long and troubled. UK Coal's is short and troubled. It was called RJB Mining until Richard Budge quit in 2001.



The economics are being transformed. Imports once undercut home-produced coal hugely. Now imports cost 37 a tonne, while UK Coal has been selling at 30.



It lost 5.8m in the half to June, hit by a dispute and unsettling shifts in production. The full year should broadly break even. But from 2005, profitable new contracts kick in, including a five-year deal with the Drax power station in Yorkshire at close to the world price.



Charles Kernot, at broker Seymour Pierce, expects 2005 profits of nearly 30m for earnings per share* of 14.6p.



The real upside is property. Kernot has done an impressive analysis. UK Coal owns 49,000 acres. Kernot values the land at 200m, which could rise to 490m once redeveloped.


UK Coal's market value is just 240m. The other attraction is a 6% yield* on a well-underpinned dividend*.


Coal mining remains difficult and dangerous with quarrelsome unions. They will want their share of rising prosperity. But there should be enough to go round.

cheers GF.

Right I havent beleived in investing directly in an oil company untill today and in the last few months have been investing in OIL SERVICE companys Hamworthy and Corac, you know the picks and shovels tale.

Anyway after doing a lot of research I really feel that SOCO INTERNATIONAL SIA as been left behind in the mass bull market on oil companies.

Forget, Burren, Regal, Dana and the rest in my opinion this is the one to be on.
JUst look at this report from the last results...................

Soco International PLC
02 September 2004

SOCO International plc

Interim Results for the six months ended 30 June 2004

SOCO is an international oil and gas exploration and production company,
headquartered in London. The Company has interests in Vietnam, Mongolia, Yemen,
Libya, Tunisia and Thailand, with production operations in Yemen, Tunisia and
Mongolia. SOCO today announces interim results for the half year ended 30 June
2004.

HIGHLIGHTS

Operating profit of 4.1 million (2003: 4.2 million)

Net profit of 2.0 million (2003: 2.5 million)

Earnings per share of 2.9p (2003: 3.6p)

Cash balance of 26.7 million at half year end

Finalised the sale of an interest in ODEX creating a consortium of SOCO
(34%), Oilinvest (46%) and Gazprombank (20%) in the special purpose
entity to progress initiatives in Libya and other countries

Continued reinterpretation of existing 3D seismic and acquisition of 650
sq km of new 3D seismic in Vietnam prior to commencement of drilling in
Q1 2005

3D seismic programme completed in Mongolia with two wells drilled, both
apparent discoveries, and a third well spudded

First ever deviated Basement well drilling in East Shabwa in Yemen



Ed Story, President and Chief Executive of SOCO, said:

'Following an extended period of quiet preparation, the release of interim
results coincides with the commencement of a very active drilling programme for
SOCO, one that I believe has company transforming potential'

2 September 2004

ENQUIRIES:
SOCO International plc Tel: 020 7457 2020 (today)
Ed Story, President and Chief Executive Tel: 020 7747 2000 (thereafter)
Roger Cagle, Deputy Chief Executive
and Chief Financial Officer
College Hill Tel: 020 7457 2020
Tony Friend
Nick ElwesENDS.

Youl be sorry if you miss the boat on this one.

cheers GF.

Seems like someone from another board agrees and puts forwards these points for buying..............................

So.....why buy more Soco now?

Four inter-related reasons:
1) Newsflow is now very much in sight on several fronts. None of it has yet emerged though, so analysts have yet to revisit their old views and recommendations. There was, and indeed remains, a chance to get in before serious interest picks up again.
2) There is, IMO, a decent chance of some very large price rises within the next 6 months, accompanied by increased downside protection. Once newsflow starts, the shares will come back onto institutional radar screens - you can wait for it to emerge, or you can speculate now at what I think will prove to be a lower price -perhaps much lower!
3) The market thinks there is nothing happening and has gone to sleep on the prospects. You can see this in the broadly sideways drift and very low volumes on most days [until this week]. They are wrong. Yemen and perhaps Mongolia should provide some near-term good news.
4) The time to buy is when no-one else seems very interested.ENDS.

Looks very interesting and could be a cracker of a stock.

cheers GF.

Up she goes , up 13.5p, and looks to have plenty of legs. Will make a seperate thread for this one.

cheers GF.

Soco now up 22p, looks strong.

cheers GF.

Goldfinger

Can you reply to a post on the NML thread, please.

Heres a system to sift out the Gold winners from the losers................

If gold is a low risk investment during the Kondratieff winter, which shares, after bullion itself, should we be buying - gold producers or exploration companies? Let's examine the 'pros' and 'cons' of each of them.

Gold Producing Companies:
Pros:
-Investment grade. Large Market Caps-appropriate for investment funds.
-Cash flow via production.
-Excellent liquidity.
-Share prices generally rise faster than the price of gold itself.

Cons:
-Depleting their resources through production. Difficulty finding sufficient reserves to maintain production at current levels; i.e., Newmont 7.2 million ounces p.a.
-Hierarchal management-slow to make decisions.
-Exploration subject to committee review and budgetary constraints.
-Limited exploration since 1998.
-Only a small number of companies to choose from.

Junior Exploration Companies:
Pros:
-Responsible for 70% of discoveries.
-Growing their gold.
-Quick response management.
-Innovative geologists; prepared to see the unconventional.
-The onset of the Kondratieff winter suggests the largest bull market in gold in the entire cycle. In that environment share prices rise faster than those of their conservative counterparts.
-A major discovery positively impacts the share prices of most exploration companies.
-An ability to release regular news in progress.
-Management usually owns a large stake in the company and has a vested interest in achieving positive results on the behalf of all shareholders.

Cons:
-Management under suspicion-not trusted.
-Viewed as very high risk investments.
-Investors don't understand news releases, because they are usually not geologists-can't follow a discovery in progress.
-Poor liquidity; small market caps-not suitable for most investment funds.
-Difficulty in raising money; major dilution at low share prices.

Evaluating Juniors:
The key is Management. The Long Wave approach, developed by my team at Canaccord is subjective but still useful.

Points System:
Resource -
50 points- Defined Resource
35 points- Discovery
15 points- Grass Roots.
Management - Max 50 points
Properties - Max 35 pts
Promotion - Max 15 pts
Blue Sky - Max 25 pts
Political Risk - Max 30 pts
Market Cap - Max 30 pts
Shares Outstanding - <5million - Max 10 points

I much prefer investing in juniors versus seniors in a gold bull market, because:
- There is significantly more upside price potential, following a discovery.
- Easy to be selective. There are plenty to choose from. Follow the management.
- Exciting to follow progress; discovery-resources-reserves.
- Management is usually dedicated to enhancing shareholder value. It wins, too.

So there you have it, I believe that gold at this point in the Kondratieff cycle is a low risk investment and good junior gold mining shares are arguably an even lower risk than their senior producing counterparts. Now go and buy some. However, you must remember to buy management.

For a detailed presentation of my interpretation of the Kondratieff Cycle visit my website www.thelongwaveanalyst.ca.

http://www.thelongwaveanalyst.ca/

http://www.thelongwaveanalyst.ca/

cheers GF.

I hold LMI and AFE. I am tempted by FDI and Galahad Gold -- what ones do you now favour as we have to select ones to back? cheers MP

FDI and TSG

Thanks aldwikk

Im in AFE and have been tempted by TSG and Centamin (who I rate as the best explorer of them all)but I feel you should buy the junior producers first with POG at these levels and then move onto the explorers as POG moves higher.

Producers I am in, avocet, Bema, Peter Hambro, and Golden Prospect. Ive also opened a new position in Cambrian, but that is a mining house, I suppose Golden Prospect is as well but it seems to go along with the price of POG.

cheers GF.

GF.
FDI is a producer.

Great.

Sorry but hope all you guys ok.

cheers GF.

i bought Oxus and Avocet last Dec. Avocet now is starting to move upwards and think it will got 1 plus in short term.

I still believe in Oxus although i'm well down at present. Anyone have any views on OXS

scotinvestor,

A friend of mine rang me last weeK to say he'd read that Oxus have more "problems" with the local governement.

I have not read it for myself, but these little rumours seem to emerge from time to time, and go back to the time of Oxus having difficulty obtaining an export licence for it's first gold pour.

As we know, it was eventually sorted out, but it did raise some concerns at the time, and subsequent rumours resulted in the price falling back to it's present level.

I sold as Oxus fell in order to bank the profit, and although I like the company, have not bought back yet due to these nagging little rumours.

I do hold Avocet, and I agree with you that 1 seems likely by the end of the year, if not sooner.

I intend to increase my Avocet holding as soon as I release funds elsewhere.

Interesting interview on Gold.

http://www.financialsense.com/Experts/2004/Bolser.html

cheers GF.

Any thoughts on AFG goldfinger.

Just stick with it. Looks to me like the US budget deficit will bring the dollar down and POG up. I also think we are entering the asian wedding season so physical demand for gold should be increasing.

cheers GF.

Thanks GF.

>>GF

The "asian wedding season"! Well I never - learn something every day!

rgrds
gk

galick,

I think it's normally referred to as "the Indian wedding season".

This normally results in increased demand for gold, although I think this was lessenned last year due to the higher price of POG. India is becoming more prosperous all the time, so this year may be different.

Thanks Andy - interesting.

I have a position in the JP Morgan Indian Investment trust (ticker JII). I don't know much about Indian companies, but the PE's are really low - market average is about 11 I understand. I am not really into Investment trusts but I think India is such a good play - and I was not sure how to gain access otherwise. Do you have any indian plays other than gold & commodities (which I think will continue to do well).

rgrds
gk

gallick,

No, like you, no idea about their market, too remote for me.

Commodities look the place to be for now, totally agree.

Soaring Chinese demand drives mining boom
By Jeremy Grant in Chicago

FT.COM Published: October 4 2004 03:00 | Last updated: October 4 2004 03:00

With its 2,400 horsepower engine, 300-tonne weight and bright yellow livery, Caterpillar's new dump truck makes a statement about the mining industry's health that is hard to ignore.


Caterpillar is struggling to fill advance orders for the $2m truck, which was on display in Las Vegas last week at the world's largest mining exposition. That is in spite of production of the 793D not starting until next year.

"We actually ordered 10 of them, but they could only give us five," said Laurie Voyer, general manager of Leighton Contractors, an Australian group.

Mining is booming, driven by China's seemingly insatiable demand for coal, iron ore and other commodities, and the resurgence of US manufacturing.

According to the US National Mining Association, mining is also expected to enjoy a boom year next year, building on this year's record volumes. That has created a bonanza in the mining equipment industry, spurring demand for diggers, excavators, bulldozers and diesel engines.

Clive Deary, mining sales manager for Detroit Diesel, said his company was sold out until March next year. "We had a business plan 12 months ago. We've doubled the numbers since then."

Yet the question remains whether this boom will eventually turn to bust - as so often in the chronically cyclical mining industry. However, many argue that future peaks and troughs - reflective of swings in the supply and demand of commodities - may be less pronounced.

Jim Owens, Caterpillar's chief executive, said: "I think that we are at the early stages of a fairly prolonged global expansion of mining capacity. It is going to have a good run."

Such optimism is based on two factors: a thirst for energy in emerging markets such as China and India that should create sustained demand for iron ore and coal; and consolidation in the mining industry that has created efficient operators better able to weather commodity cycles.

"In five years, South Africa's going to be running out of electricity. China's the same way," said Robert Stenger, chief executive of The Cincinnati Mine Machinery Co, which makes coal cutters and drill bits. "We're good for another 10 years."

Gerald Shaheen, Caterpillar group president in charge of North America and global mining, said: "The mining industry used to be very fractured. We now have 20 mining companies owning 80 per cent of capacity, so we've got a much better shot at rational management of capacity in this industry."

In addition, mining industries in commodity-rich countries once dependent on the health of their region are expanding globally to diversify earnings.

Ernesto Palacios, executive director of Minexport, an advisory group in Chile, said his members were seeking business beyond Latin America. "They are strategically preparing for times when there is little demand."

Yet concerns remain. Rising fuel costs are making contractors worry about the energy efficiency of their equipment.

Another worry is the effect any downturn in China might have in an industry where it now has unprecedented influence.

Furthermore, one large private manufacturer of mining machinery told David Bleustein, a UBS analyst in New York, it was "increasingly concerned about the ability of Chinese manufacturers to duplicate western mining technology".

Yup that report goes hand in hand with one on mining web yesterday that said the Broking houses were expecting coking coal to hit $80 US dollars in 2005, the last time I looked it was in the low 50s so we should have exceptional growth from the likes of Bisichi, Anglo Pacific, Cambrian and even UK coal later in 2005 when its contract prices can be moved up. I beleive al of these to be derd cheap at the moment.

cheers GF.

Any news on AFE- it seems to have gone quiet. I thought they were about to announce good drilling results? I have been told to check out Adstrata-AAA as a good long term bet. Anyone any comments? cheers MP

PM to you MP on analyst recommendations, anyone else want one let me know.

cheers GF.

Commodities
Date: October 13, 2004

Its A Record For Copper.

By Rob Davies

Copper prices reached their highest level for 15 years last week when they got to US$3,321/ tonne. The previous peak, and highest ever price, was in 1989 when they got to US$3,400 and that record looks set to be broken very soon. Inflation over that period means that in real terms the current prices are still below the US$4,500/ tonne that the previous high equates to in todays money. Nevertheless, a peak has been reached and with inventory levels still low there are few reasons why prices should not move yet higher.

Oil is one reason why metal prices might go up because diesel fuel for trucks is a vital element in the cost of mining and the concentration, smelting and refining processes are all big consumers of energy. Ore is pretty hard stuff and breaking it down it down into its component parts takes a lot of effort. Oil prices for the lighter crudes in the US have now past US$50/barrel and the heavier Brent oils are heading that way.

The oil industry, like the mining industry, is operating pretty much at full capacity so the only way prices are going to be moderated in the short term is through a reduction in demand. Despite many signs that Western economies are not in such robust health there is no evidence yet that offtake is slowing down. So, if it is costing more to produce the metal, and consumers are desperate to get the stuff, the chances are that miners will be able to pass these costs through to consumers as price rises.

However, both the oil and the metal markets are in backwardation meaning that future prices are lower than spot prices. Copper, for example is priced at US$3,030/tonne for delivery in three months time, US$2,500 for 15 months time and $2,230 in two years and three months time. That implies that a lot of the money in the market is speculative rather than commercial, and with LME stocks of only 93,000 tonnes it is easy to see why.

The attraction of hot money to the commodity market can perhaps be explained by a fear that the dollar may weaken further, a view reinforced by a statement from a US bank official that the dollar can only go down over time, it was just a question of how far. Fears of a weaker dollar were reinforced by poor jobs growth in the US in September. Only 96,000 jobs were created which is about half of what is required. While that pushed up bond prices it didnt seem to hurt equity and commodity prices, both asset markets that do well in a growth environment.

Copper was not the only metal to do well last week. Aluminium reached a new all time high of US$1,645 / tonne and nickel moved up even though it peaked earlier in the year. Zinc has got back above US$1,000/tonne for the third time and closed at $1,139 /tonne. Interestingly, zinc is the only metal that is not in backwardation suggesting that it may give the best performance of all over the medium term. While all the commodities look set to give good dollar returns in the short term, the more important question might be to ask what that will be worth in local currencies.


cheers Gf.

If metals are in backwardation and future prices are lower that spot prices how do you see this effecting the furure of the big mining companies ie AAL BHP.
China does not seem to be slowing down, the soft landing has'nt happened and it looks as if future demand will remain high for some time to come.

MS

For ANDY and the lads..............................

In from watshot..

I am aware that Toledo Mining Corporation (TMC) enjoys keen interest amongst the members of WatsHot.com. Just the other day it was reported that Endeavour Financial, which has a global presence, with an investment-banking team to match, in its chosen sphere - raising capital for mining projects - had been engaged to advise on Philippines-based Toledo Copper. A separate report said that before the operations ceased, the last 15 years of operations at the same grade of the remaining resource - and of projected future production - had produced profits of up to $100 million, a thumping figure even if the latter figure took no account of debt service, taxes or management fees. Meanwhile there have been no setbacks in the development of the nickel deposits, and indeed the company is seeking support for the building of a plant to supplement its growing shipping operations. The ubiquitous Cambrian has taken another major bite, and at 2.75p per share, the recommendation remains, buy.

cheers Gf.

NOW THIS IS VERY IMPORTANT..............................

energyi - 14 May'01 - 07:30 View 'energyi' profile



Bisichi is a tiny company. Market Cap is just over 3 Million.
But it is not a typical junior mining company. Indeed most
companies of its size are involved in exploration rather than
mining. But BISI is a different animal altogether.

Bisichi owns shopping centres worth 7.8 Million, more than
2 1/2 times its Market Cap. And yet it remains listed in the
Mining sector. Why? Some years ago BISI had its mining
operations in Nigeria nationalised. Management of the
company was taken over by its largest shareholder, London
& Associated properties, which is controlled by the conservative
Heller family.

The Hellers have used property investments to rebuild the
company's asset based. And now Bisichi is a miner again
with a coal mine, the Black Wattle, in South Africa. With coal
prices shooting up, the mine is making money. Further development
and expansion of the mining is underway.

So there it is... at 32P, you get Retail stores at a big discount,
a reasonable dividend, and a growing mining business thrown
in for free. Fish & Shops, anyone?

Monthly CHART


NAV per share keeps growing


= = = = =
LINKS:
Website: http://www.bisichi.co.uk


DiogenesJ - 7 Oct'04 - 10:41 - 147 of 167


You never know, Oliver. Bought a few just in case (Western Canadian Coal, WTN). Also have a small stack of Cambrian Mining (which owns a large chunk of Western Canadian and of Asia Energy).

oliverletwintit - 8 Oct'04 - 00:53 - 148 of 167 edit


Yup me too, owning Cambrian. Didnt go into WTM because one of my brokers cocked it up online and then I saw the sells coming in.

I was flabbergasted, I thought initially that WTM was held by just the big Investor trusts etc, but certainly not when I saw 4,000 and 2,750 pass my eyes as sells. (and more like this)

Obviously the Brokers have got their hands on these which make it a different ball game. Obviously they have alloted them to their rich clients and they are flogging them on the first day of trading, PATHETIC.

Im now going to wait and see if it settles down, if not I will purchase more BISI or Anglo Pacific. SHAME, it could have been a superb new offering.

regards oliver.

DiogenesJ - 8 Oct'04 - 11:41 - 149 of 167


Yes, turned out to be a mistake buying on the first day. Only bought a few; I'll watch now to see where it settles, and may top up then.

BISI up another penny. Now let me see, if it goes up a penny a day, in a year's time it will be...

Ah well, back to the grindstone.

oliverletwintit - 8 Oct'04 - 12:02 - 150 of 167 edit


LOL, yup but its a nice feeling. UP just over 200% from this time last year.

regards oliver.

BIGBOBJOYLOVE - 8 Oct'04 - 12:14 - 151 of 167


why the sudden burst up,is a note out? a bid coming? whats happenin dudes,i know its cheap but...

oliverletwintit - 8 Oct'04 - 12:38 - 152 of 167 edit


Storming ahead, up 17p and well through the 200p barrier.

Tipped on the faraj thread.

regards oliver.

DiogenesJ - 8 Oct'04 - 12:41 - 153 of 167


Very illiquid, bob: take care.

Sammu - 8 Oct'04 - 13:24 - 154 of 167


Oliver

You mean you just tipped it on the faraq thread?

Sam

DiogenesJ - 8 Oct'04 - 13:34 - 155 of 167


Lol - good ramp, Oliver. :-)

Angel of the North - 8 Oct'04 - 16:42 - 156 of 167


From www.everyinvestor.co.uk

Plans to double production
There are also plenty of developments pointing to resumed profit growth in the future. Apart from the rising coal price and the export contract the company is also working on plans to increase production. It has negotiated a SA Rand 25m financing to support a broad investment programme including the purchase of a machine for continuous mining. The plan is that this will enable the company to lift production from 70,000 tonnes presently towards 120,000 and even 150,000 tonnes annually. The group has also put in facilities to wash all the coal, which reduces quantities but enables sales to be made at higher prices.

There are no forecasts for sales and profits but the company says it is confident that results for the full year will be good. Equally it is easy to see that the combination of rising prices with sharply higher production bodes well for profits in future years.

A further interesting question is how the company might exploit its strong cash flow, healthy balance sheet and black empowerment status in the future. One major opportunity comes from legislation designed to force long established white-controlled mining giants to sell to the South African government mineral reserves and prospects that they are not actively exploiting. These assets will then be sold on to suitable black empowered smaller mining concerns, like Bisichi, eager to develop those assets. The company has coal reserves of around 15m tonnes so would love to acquire more reserves.

Much depends on the coal price remaining buoyant. But, if it does, Bisichi will have the resources and the opportunity to develop into a significant mining company.

DiogenesJ - 8 Oct'04 - 16:49 - 157 of 167


Thanks, A. Good to see some firm information posted here.

Angel of the North - 8 Oct'04 - 16:58 - 158 of 167


Bought in this morning - so tis my duty to ramp? a little?
More:......

Soaring prices and black empowerment help Bisichi succeed

Two key factors lie behind the startling recent success of Bisichi. First is the dramatically rising coal price which has doubled, from $30 to $60 a tonne just since last April. This in turn reflects soaring demand in China, which has gone from being an exporter of coal to a net importer sucking in coal from Asia and Africa.

The second factor is black empowerment. Bisichi went the whole hog on black empowerment by selling a 37.5 per cent stake in its Black Wattle Colliery to a black-controlled company, which has then been instrumental in opening many doors to the company.

In particular black empowerment status has enabled Bisichi to become an exporter of coal through Richards Bay Coal Terminal. The company says that the long-term export contract it has been able to negotiate locks in a significant profit margin.

It is complicated to calculate exactly what effect a rising coal price has on Bisichi because of the mix of production between exports, coal sold into the local market and low phosphorous coal sold at a premium to furnaces producing stainless steel. At the half-year stage for the first six months of calendar 2004 the group said that average selling prices for coal were 21 per cent higher than in the second half of 2003. Since then the coal price has risen further.

Investors were initially disappointed when the interims showed profits falling from 746,000 to 726,000 with operating profits down from 1.00m to 883,000. However the company says this was a very good performance because it came despite needing to move all three mining sections at the Black Wattle Colliery during the period to exploit new reserves.

Gan canny oot there.......!

DiogenesJ - 8 Oct'04 - 17:07 - 159 of 167


Canny it is, A. :-)

DiogenesJ - 8 Oct'04 - 22:59 - 160 of 167


Here's some more bullish comment on the price of coking coal:

07.10.04: shares in BHP Billiton and Rio Tinto were higher in afternoon trade as Dresdner Kleinwort Wasserstein said the two blue chip miners remain its top picks in the UK listed mining sector, dealers said. In an upbeat note on the sector, the German broker said it believes the mining sector offers superior earnings growth compared to the market with EPS forecast risk still on the upside. It added it has raised EPS estimates again, principally for the bulk commodities and oil. It now forecasts a 22% increase in iron ore prices and a 60% rise for coking coal in 2005. The broker said it retained a preference for bulk commodities, particularly iron ore and coking coal exposure as these commodities boast the most attractive medium-term fundamentals, and therefore have a stronger case for a higher multiple of peak cycle earnings in 2005.
(from InvestorEase.)ENDS.


BUY COKING COAL COMPANIES but forget UK coal as that as fixed low contract prices up until mid 2005. BISCHI, Anglo Pacific, and the newly floated Western Canadian Coal give exposure, but let this last one settle down for a while. Cambrian is another but too many jockeys on it at the moment.

cheers GF.

cheers GF.

Has any one read the lex column in todays FT on mining, can they give me a summary of it please or paste it.

I've brought this thread back up to the front page again, as the gold
price is doing well recently, so the assoc. companies may be of
interest to others apart from just me :>)

Yup well pleased. Tooled up derd cheap in mid summer and now looking at some fantastic gains. Could see this coming the writing was on the wall, all speculators in oil but some time the bubble had to burst. Bang in the two budget deficits in the US and you have an ideal breeding ground for POG.

cheers GF.

POG now back over $450 .

cheers GF.

Nice to see some share prices recovering a bit also today
RRS took a nasty knock/profit taking end of last week, up
again today thankfully. But other major miners BLT etc down.