Bought into these this morning on a BUY recommend from RHPS. Traded on Toronto SE plus a listing on AIM since September.

Seems like there's lots of proven gold and copper near the surface 10 miles from the main railway line from Moscow to China to take this commodity straight to the current major growth area in the world.

Proven reserves of gold 1.876m tr oz, copper 215.6m lb - at today's prices worth 584m.

Assuming gold at $375 per tr oz gold and $1 per lb of Cu with operating costs of $170 per tr oz (8th lowest out of 44 gold producers) gives a NPV of 157m. Heavily discounted at 10% (K'stan generally discounted at 7.5%) still gives a 60M NPV compared to current market cap of 27.5m.

Debt financing from Barclays Capital is in place for development, but a 20-30m placing is coming up shortly. This could present the opportunity to buy in a few more at a disount after I have got to know the stock a bit better.

Seems like a worthy punt to me. DYOR

SD

Could be an independent insurtance contract to guarantee Performance - or pay overcosts or late penalties - they have not provided one - does not mean their performance is not happening, just it's not insured aqs required under the LSKT - so they are threatening termination until it is remedied. No physical detriment to operation perceived YET.

sd

PS thanks for posting the RNS

anyone know why EUM's falling back so far?

sd

why the further fallback today, on raising new capital and some good volume buying?

sd

long again 40 (seem to have been watching for ages);

I drew this chart this morning, since when the price has snuck out the top of the wedge a little bit

(chart is a bit messed up - seems to be a problem with their Java charts today)

note:
- being listed in Toronto, it is ISAable;
- mkt.cap = £110m

it has been a bit weak because of:
- general slide since May
- slight delay due to contractor problems
- sorting out financing
those problems now largely sorted out;

today's buying is probably partly due to the rather bullish article in "Resource Investor" yesterday -
http://www.resourceinvestor.com/pebble.asp?relid=26951
...from which:
- revised reserve and resource estimate in the next couple of weeks
- from Oct07, will produce 140,000+ oz gold + 40m pounds copper p.a.
- cash inflow $120m in 2008
- plan to double production in year 3 after a small boost in year 2 (the expansion could be financed out of cash flow)
- 5+moz gold reserves
- that + several hundred million dollars p.a.cash flow = takeover target
- "should be trading at C$2 per share right now"
- "12-18 month target price of C$5 per share"
- "almost a 6 bagger in the stock from current levels (C$0.84)" (more for Canadian warrants)
- "arguably the cheapest emerging gold producer out there"
- "a value, cash flow, reserves, growth and critical-mass monster"
- "The updated reserve report coming out some time in the next couple of weeks should catalyze this story, and astute investors who climb aboard before then should make superior multi-bagger returns."

What more can I say?!

oh - Toronto 5-year chart

Well, I might as well continue the monologue (save for stockbunny, silvermede and mikehardman). I had no idea gold was so boring.

Happy to see a substantial breakout above previous high of 72p to 85p. Even happier to report a 112% profit since I bought in at an average of 39p 2.5 years ago (35% pa), and we're still not producing yet.

Any other holders out there?

looks like the retracement over now that's have some volume and away we go.