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.!!

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

Saw that. I agree with the comments. GFM seems to be being ignored by the mag for some reason. It wouldn't have happened under the previous editor, Ross Greenwood!
Re my earlier post, is a PE of 20 asking too much?

Haven't they confirmed 500,000ounces of gold in zone 111 also?
You would need to add that to future projections/valuation i'd imagine.....

That sounds a bit on the wild side. They have found in the immediate mine area 6.68m tonnes zinc ore grading at 8.69% plus gold at 0.5gm/tonne. The gold was included in earlier projections for revenue and EPS. It could be that higher concentrates may be around in the area about to be prospected to the south; the company seem to think that it gets better the further south in the permit area that they look.
Just on what has been announced the company should be worth much more than the share price currently indicates in my opinion.

This board is a good way of attracting the interest of Shares Magazine. Perhaps what is needed is support from them knowing that the Company have everything in place to see SP reach a more realistic figure. My crystal ball tells me 50p by end of May

Nice price rise today - shame about the spread!

Last year shares mag did a piece on their top ten mining tips for success and
GFM were one of them so i'm surprised they haven't followed them a bit more?

dibbles,

Interesting you should say that because recently they published a letter from a reader saying the very same thing!

I have to admit it's strange they haven't followed through on such a sucessful tip!

I think their then mining expert left to join a broker and the replacement, (if they have one!) is in the 'not invented here' camp so is trying to look at new stocks. Editor's comment on that letter seemed to imply no criticism was accepted.
More to the point at least the shares rose yesterday. Does anyone have a view on my question I posted the other day when I reforecast what I think the EPS is with the current zinc price? Looking at PE's for explorers, producers and almost any other company in the metals business points to GFM being undervalued by a considerable margin.

Sharesure,

Now that sounds very feasible IMO.

Shame that he would avoid a good stock just because it was picked by his predecessor though.