Please see S/Tele Share Tips belivies that griffin has had talks with Anglo American & also Ivanho Mines RE: negotations starting @ 50p with management requiring more per share.!!

Oakapples...the point is that Griffin are on time and getting all the equipment in place on time and they are jolly good at keeping the shareholder informed.

Thanks Dynamite good point which I missed - had a very late night watching the "Masters"

Thought...
Wages and overheads paid in the Chinese currency - it's name escapes me!
Rates of pay much lower then in other parts of the world also.

All produce from mine priced in US Dollars....
Chinese currency is 'pegged' against the dollar so not influenced by
market swings which the dollar is.....

So potentially - costs (overheads/wages etc) steady and low, whilst
commodities produced can rise in 'on paper value' (ok they can fall too)
and the worth of the company in terms of its assets (mine production)
can rise in worth without incurring higher costs necessarily,
due to not having as much exposure to the same volatility as other producers elsewhere...

Possibly not making my point very clearly - hey it's monday! - but does
anyone follow my somewhat confusing drift?
I think there could be more upside to this then down.
:>)

Stockbunny - you are not just a pretty face with a nice tail

Oak I thank you but truth is I'm also extremely bad as times at
transferring 'the thought process' to a legible statement! LOL
But I'm glad you could make out the idea amid the waffle!
;>)

Check out eureka mining thread 10x by christmas!

Stockbunny - it's the remninbi (or yuan if you like it simple - yuan it simple, you got it!)

Remninbi is kept artificially low by Chinese gov against US$, so China can export manufactured goods to US. Also, therefore, US$ is high to remninbi, so Zinc sold in US$ makes lots of remninbis.

BUT, most of the mine's production will be used by China, won't it - that's where the demand is and China will not export it only to reimport from elsewhere.

So China has to pay low priced remninbi converted to high priced US$ to buy its own Zinc. The Chinese get no cost advantage.

BUT, GFM make lots of US$ which it has to convert to UK at only about 53p per dollar.

So the net effect of the currency, I believe, is that the profits for shareholders are vulnerable to a weak US$ - just like oil and gold.

However, the chart looks jolly good (who was it got in at 4p!) What was the old up and under in March all about? Even so the steep upward channel from the low at the end of August remains intact. It's gotta go to 50p, hasn't it, on successful commencement of the first smelt (as I beleive it is called in Zinc circles)?

I'm only here 'cos Di taunted me on the SEO thread.

Got no dosh, got no shares.
I'm just a dog that's putting on airs.

woof woof

SD

Well SD in amongst your doggy portfolio you must have a dog or two...You sell a dog and buy GFM and I will sell a dog and buy SEO and we will see which one does better. Woof Woof.

Di :-))))))

Di

Not a bad challenge - let me look at the back of the kennel to see if I can find one!

SD

I too, have had a couple of dogs in the past.
Didn't realise till the morning!

Ahh poor Stock-Doggie, hope your portfolio gets good soon :>)
We all have less then respectable canine holdings in our
portfolios at some time - put it down to experience and look
for your next opportunity!
:>)

F Poor...does this mean you have sold a dog too and bought into GFM or SEO????

Di,
I have quite a number of GFM, and will purchase more
on any weakness.
No dogs to sell, but funds ready and waiting for an opportunity.

Dog to Bunny - whaddaruonabaht? I think you must have meant to address that remark to FP (but I'm not sure if he was referring to his private life or his portfolio - we all make mistakes, don't I know it!)

I've had a good look, and I'm afraid there is nothing in my hutch I want to sell enough to take up Di's challenge (temporary apologies, Di), so I am organising a little more free capital from elsewhere so I can play the game, by which time I may even have DMOR on this stock before plunging in blind for fun. ( BTW the last time I got blind for fun, I can tell you . . . well, perhaps not on a family thread. )

SD

Oh then stockdog that clears that one up then.
I'll take my tea and sympathy elsewhere then.......
(hops slowly away...............)
;>)

SD... that's the point....Dogs are the ones you don't want to sell cos' you really should have sold them before they went down....but one day tehy could do a DDD so you can make it back and get out quick ;-). Plus of course DYOR...cos' its no good coming moaning to me that you only made double your money on GFM instead of 10 times hehe....woof woof
Di

Di, Last year I saw GFM tipped as potential takeover target for big players with 50p tipped. I had no spare cash and was having a nightmare at the time but saw it fall from 30p to 16p due to Berlin stockmarket shorters? Am I correct?
Anyway, with that out of the way, what are your projections for GFM as mining company based upon their own business and no outside TO speculation?
Appreciate your thoughts as Mining is not my area of expertise at all.

This stock seems t be very quiet given the intersting events that should unfold in the next 8 weeks.
When brokers Charles Stanley last issued their Research doc. zinc was at 1100$/ton. It is now 1240$/ton. Not an enormous increase but one which translates to the bottom line in a more significant way beause virtually all of the extra selling price is profit. On that basis their projected earnings/share for this year ought to rise from 4.35m$ to 5.07m$ this year, and from 16.26m$ to 19.01m$ in 2006, provided zinc stays at at least 1240$/ton.
Other events which should help in taking the company into the next level is the increased drilling activity, not just for establishing with greater certaity that there is a lot more zinc (they've only explored 1.5sq.kms out of the 68sq.kms. total covered by their licence)but also the further drilling for gold in the increasingly promising area to the south of the zinc mine.
All of this should be covered in more detail when the Report & Accs. are issued in May and at the London based AGM in June.
Also of interest is the sale of 15% of the company's stock by a hedge fund to an unknown purchaser (all done off-shore). The share price did not dip as a result.

A gremlin crept in to yesterday's posting.

Using the only broker research I have ever seen on GFM, updating it for today's zinc price of 1300$/tonne and a dollar exchange rate of 1.92$/.

Earnings/share could be extrapolated as follows:

2005 2006 2007 2008 2009

3.23p 12.1p 10.83p 6.27p 6.27p
The drop in late 2007 onwards reflects the cutting in of the profit sharing deal with the Chinese.

Given the above what PE should GFM sell at? It still has the appeal of an explorer in a highly attractive licence area, the solidity of a producer as of May 2005 and the track record/relationship with the Chinese authorities. Surely the current price of GFM at 32p undervalues this company.
Would welcome anyone else's views on this one.

Good positive letter in Shares Mag