Decided to start this since the above seems to have had a great start this year and have the potencial to outperform the other sectors. All your inputs and reserch is always welcome. Here are my speculative picks.

African Diamonds (AFD)
Jubilee Platinum (JLP)
African Eagle (AFE)
African Gold (AFG)
Caledon Resources (CDN)
Minco (MIO)
Mano River (MANA)
Eurasia (EUA)
Brazilian Diamonds (BDY)
Petrel Resources (PET)
Emerald Energy (ENN)

Note: Botswana (where AFD is operating) announced a 7.5% devaluation of its currency before the weekend. Is this good or bad news for AFD?


PS: Xmortal - I too used to bracket all exploration companies together in my watchlists, as they do share common risks in respect of gambling on discoveries, etc. But if there is enough response to this thread it may be worth splitting the opening list into one for Oil & Gas, and another for Mining?, as separate sector classification/charts apply, and separate Investment Trusts. O&G being reported in 'energy' journals, and mining in 'minerals/mining' ones.

Personal view: Get your gold while it's still in the ground
By Jim Slater (Filed: 09/02/2004)


Investors who believe, as I do, that gold is in the early stages of a bull market have to decide whether to buy bullion or invest in gold mining shares. I recommend the latter because of the leverage.

The first example of the leverage is that the total market capitalisation of all the gold mining stocks is less than 0.5pc of the stock market capitalisation of all stocks. Investors would only need to re-allocate a tiny proportion of their assets to bullion and gold mining stocks to rocket-propel their prices far beyond previous highs.

A gold mine that produces gold at $200 an ounce offers relatively low leverage. With gold at $400 an ounce, on a rise to $450, profits would increase by 25pc against 11pc for bullion. With a rising gold price it would be much more rewarding, albeit potentially riskier, to invest in more marginal mines.

One that produces gold with a break-even point of $350 an ounce would be making $50 an ounce with gold at $400. An 11pc rise in the gold price would double the mine's profits. Junior mines usually have further development work to do before they begin to produce gold. Therefore their gold resources will not be classified as reserves and are likely to be described as inferred resources.

When buying the shares of first- and second-tier producing gold mines in America and Canada, investors pay an average of approximately $135 per ounce for their gold reserves in the ground. With a non-producing junior company investors pay an average of $45 an ounce for their resources.

In late 2002, when I co-founded the company that was recently reversed into Galahad Gold, the gold price was just over $300 an ounce and gold shares were very cheap.

We decided to buy as much gold and precious metals as possible and set a limit of less than $10 an ounce for gold in the ground. We managed to buy into two significant deposits at well below that level. Now that gold has risen by $100 an ounce and gold shares have had a good run, we have lifted our limit to $20 an ounce, which still provides excellent leverage.

To obtain the maximum leverage it clearly makes sense to buy gold in the ground as cheaply as possible. The cost per ounce is determined by dividing the fully diluted market capital (less any obviously surplus cash) by the number of ounces of gold in reserve and resource estimates. However, such a simplistic measure needs some additional protective criteria to help eliminate the wrong-uns.

The other protective criteria we bear in mind are:

1 The resources should be in a politically stable country. America, Canada and Australia come immediately to mind as the three main countries that qualify. In contrast, for example, in Russia, it can be very difficult to register a title properly, in South Africa black empowerment can be an issue and in Colombia you might be kidnapped.

2 The environmental position needs to be relatively straightforward. In California for example, the regulations are so onerous that the cost of production is usually prohibitive.

3 The resources must be calculated in accordance with the regulations of the country in question. In Canada, for example, National Instrument 43-101 outlines the criteria, which include economic viability.

4 The management must have either developed a deposit and sold it to a major or brought a mine into production.

5 The company must have the financial capability to raise further funds.

I recommend investors to try to identify (with the help of their brokers if necessary) gold mining companies whose gold resources can be invested in at less than $20 an ounce and also satisfy all of my protective criteria.

Many of the companies that make up the averages are not compliant with local regulations for calculating resources and are in unstable countries.

You can readily see, therefore, that the companies you select using my protective criteria should be better than average and this will provide a relatively safe ride to the $45 average level and a consequent doubling of your money.

As the mine is developed, there is a longer joyful journey towards the $135 average for first- and second-tier producing mines. There would be some equity dilution to raise funds to cover the equity portion of capital costs but frequently this is offset by substantial increases in resource estimates as the mine is developed.

I have over-simplified my approach. There are many other factors that complicate the position, such as other metals, for example copper, which may have to be mined in tandem to make the whole project economic. Sometimes a whole suite of metals might be involved. There are also questions of grade, metallurgy, working costs, capital costs and the time lag before production is likely to commence.

However, the key criterion of a low cost of gold per ounce strengthened by protective criteria is very simple and highly leveraged. Given a rising gold price, I am confident that, on balance, it will substantially outperform other ways of investing in junior gold shares.


Jim Slater is deputy chairman and financial director of Galahad Gold

Chickened out of MIO at 31.5p this morning.

Juzzle, thanks for your input very much appreciated. You are right in spliting the thread into Oil and Mining. There a lot of profit taking which is good anyway. Most shares listed here are almost down 10%.

Not very good day at all more most of mining stock. Only one of the oil stocks perform superbly.

Emerald Energy. It put a 21% up performance. I feel this will do nicely this year. Heres why some important people are now working for them.

Company Emerald Energy PLC
TIDM EEN
Headline Director Appointment
Released 15:17 9 Feb 2004
Number 1824V


EMERALD ENERGY PLC

9 FEBRUARY 2004



Emerald Energy (Emerald or the Company)



Director Appointment



Emerald Energy plc is pleased to announce the appointment of Keith Henry as a non-executive director of the Company with immediate effect.



Up until 1995 he was Chief Executive of Brown & Root Limited and from 1995 to 1999 he held the position of Chief Executive with National Power Plc. He was Chief Executive of Kvaerner Engineering and Construction Limited from 1999 to 2002. He currently is a non executive director of Petroleum Geo- Services ASA.



In addition to the above, he has held the following past directorships:

Davy Process Technology Limited

Davy Metals Limited

Enterprise Oil Limited

International Power plc

Electricity Association Limited



There is no further information to be disclosed under paragraphs 16.4(a) and 6.F
2 (b) to (g) of the UKLA Listing Rules.




Alastair Beardsall, Emeralds Chairman said:

I am extremely pleased Keith has joined the Companys board. He has a wealth of industry experience that will help Emerald to both formulate and implement its growth strategy for the future.



Enquiries: Alastair Beardsall - 020 7925 2440

This link is one I find useful to skim through for news -- mineweb

And infomine ain't bad either. Check out the 'companies' button and the 'countries' button in particular.

And this precious metals rolling newsfeed too.
Plus this specific oil newsfeed.
And this specific gas newsfeed.
Or this one for energy news in general.

I bought some PETREL today... down nearly 11% I think this was due to the bomb in Iraq today..... This one is very susceptible to news. Will do great if awarded the tenders, if not it will go down like a stone. I will travel with this one... Hopefully I make some money very soon. Lets hope there is not more profit taking tomorrow.

This appeared a week ago

Posted: 2004/02/04 Wed 19:09 Mineweb


LONDON (Mineweb.com) – Not content with being chairman and chief executive of no fewer than three AIM listed companies – one of them still a cash shell nearly a year after it started trading - Phil Edmonds is about to launch yet another on London’s Alternative Market.
And once again it seems that Thomas Kaplan will be providing some of the cash to get the new company, Central African Gold, up and running.

(While we are name-dropping, Roy Pitchford, chief executive of Zimbabwe Platinum, Bruce Rowan, the UK based Australian serial investor in resource stocks, and Brian Moritz, head of Grant Thornton’s capital markets group, will get a mention later because they all figure in the Edmonds’ story).

Kaplan first contacted Edmonds by telephone, apparently out of the blue, towards the end of last year and then put money into two of Edmonds’ companies in September. Since that time shares in both of them, Capricorn Resources (LSE:CIR) and Southern African Resources (LSE:SFU), have rocketed in price for no other apparent reason.

For those who don’t recognise the name, Kaplan is not your average mining man. He is an American with a doctor of philosophy degree in history from England’s Oxford University who made his first big bucks by using strategic forecasting in US fund management. His speciality is an analytical method that attempts to identify and assess global trends in politics and economics and the way these trends relate to the international financial markets.

One trend he thought he had identified in the early 1990s was a coming shortage of silver. He looked round for a suitable company to invest in and, when he couldn’t find one, set up his own – Apex Silver (ASE:SIL). George Soros, who has accumulated a fortune from international investment and is well known for his forays in the international currency markets, and his brother Paul, put their personal money into Apex. Paul Soros is still a director of that company and Kaplan remains chairman.

Kaplan brought together some of the best people in silver exploration and it was not long before Apex identified the huge San Cristobal deposit in Bolivia (the obvious country to look for silver). But several years later Apex has not started development because Kaplan is waiting for the silver price to go up to what he considers to be a reasonable level. Detractors suggest San Cristobal is really a zinc deposit with silver as a by-product and that transporting metal to the coast would be very expensive. Apex is not short of cash, it had US$42m in the bank and recently raised another $165.6m by issuing more equity. So something might happen soon.

Edmonds has also been around the mining scene for many years. His cv mentions first of all that he once played cricket for England and he seems to have been more successful with bat and ball than with his early choice of mining vehicles. Philippine Gold, in particular, had a disastrous time when he was in charge.

While cynics suggest that he and his fellow directors probably want four companies because that means more fees and options for all involved, Edmonds says there is logic to it. The first company he launched on AIM, Central African Mining (known colloquially as CAMEC), exports copper and cobalt from the Democratic Republic of Congo and tantalum from Namibia and Mozambique.

CAMEC, through its contacts, also got the opportunity to become involved in a platinum project on South Africa’s Bushveld. But it was thought better to put that project into a separate company – so Southern African Resources was set up. It is very early days, but using inferred resource figures, the Snowden Group suggests SAR’s Leeuwkop project on the western limb of the Bushveld, might produce 300,000 ounces of platinum a year for 24 years.

This estimate apparently attracted Kaplan’s attention. Edmonds believes Kaplan had been tracking potential platinum investments via the internet. After the out-of-the-blue telephone call from Kaplan, Edmonds flew to meet the American in Saint Tropez in the south of France and they began what seems set to be a long term relationship.

Edmonds says he wants to build CAMEC into a substantial mining business with copper, cobalt and tantalum operations of its own and investments in other entities. CAMEC already has a 10 percent stake in SAR, received in exchange for the platinum project.

After CAMEC and SAR came Capricorn. Edmonds says the objective is for Capricorn to invest in late-development, single commodity, natural resources projects – he mentions diamonds and oil but the former seems more likely. Capricorn raised 400,000 at 1p a share in February last year before listing on AIM but so far no projects have materialised. Edmonds explains: “Things always seem to take longer than anticipated. But in eight to twelve weeks we should have something interesting to say.”

Meanwhile, gold is very much in favour at present so the fourth single-commodity company, Central African Gold, was to be launched on AIM today (February 4). But there has been a delay because, according to Edmonds, potential American investors want changes to the structure and that means a new prospectus must be produced.

Also, he says it has been difficult to satisfy demand for Central African Gold stock, so the cash to be raised ahead of the listing has been increased from 700,000 to 1m.

Thanks to the Kaplan connection, Edmunds’ companies are riding high at present. Shares in CAMEC were drifting along at 1.5p less than a year ago. It raised 2.48m on January 19 at 4p a share. In the following ten days the shares peaked at 13.25p, giving CAMEC a market value of 43m.

Shares in SAR and Capricorn have been motoring since September 12 when it was announced that Kaplan’s Bermuda based family trusts had put cash into them. He paid 1.5p a share for 16 percent of Capricorn, a total cost of $150,000. Last week the shares reached 13p. His investment in SAR totalled 400,000, giving him 6.1 percent of that company, at 4p a share. Last week the price went up to 33p.

By an amazing coincidence, shares in all three of the Edmonds’ AIM companies reached their peak prices almost exactly at the same time, on January 27 and 28. At that time he was in the US talking to potential investors in Central African Gold.

The Australian Stock Exchange would almost certainly have asked for an explanation but AIM leaves supervision of its listed companies to the nominated advisers (nomads). Grant Thornton is nomad to SAR and Capricorn, as well as to Central African Gold. And Brian Moritz, head of Grant Thornton’s capital markets group, is also a director of all three companies. Some say this represents a big conflict of interest, but Edmonds disagrees and so, we must assume, does the AIM team.

Bruce Rowan is also on the boards of SAR and Capricorn and previously was probably the biggest single investor. He is on the board or an investor in several other natural resources stocks as well as manager of Tiger Resource Finance (LSE:TIR) which, of course, invests in mining/exploration stocks. Rowan is not on the CAMEC board but he owned 26 percent when it listed on AIM in October 2002 and there has been no record of any sale since. Rowan is also expected to put some cash into Central African Gold.

Apart from Edmonds, one other person is on all four of his boards, a 34 year old Zimbabwean, Andrew Groves, who is described as development director. Groves, who was born in Harare and educated in South Africa as well as Zimbabwe, obviously played a key role in finding the African assets. According to his cv he
has significant experience in operations management in Southern and Central Africa, and has extensive knowledge of the mining industry in Namibia and Mozambique

He also played some part in introducing Roy Pitchford, chief executive of Zimbabwe Platinum, now part of Impala Platinum, who joined the SAR board last month and is also a director of Central African Gold. The SAR appointment met with Kaplan’s approval, says Edmonds, because the American was one of the biggest private investors in Zimplats.

Edmonds hopes Pitchford eventually will take over as chief executive of SAR. That company expanded in January by paying A$4.7m for 52 percent of Tau Mining, owner of the Molopo Farms platinum project in southern Botswana.

This is all part on a plan to introduce key professional management to the Edmonds’ companies so that he can relinquish the chief executive’s role in all but CAMEC.

Meanwhile, further work on the AIM launch of Central African Mining as another Edmonds cash shell will probably have to wait until he returns from Cape Town on February 14. Like many others in London he is off to the Indaba at the weekend.

Juzzle: try www.oilbarrel.com

many thanks for the links. Keep and eye on EEN. I feel is a buy, just waiting for that dip.

Thanks xm.

Very good news from Mano River.

Company Mano River Resources Inc
TIDM MANA
Headline Holding(s) in Company
Released 16:28 12 Feb 2004
Number 3561V


RNS Number:3561V
Mano River Resources Inc
12 February 2004


MANO RIVER RESOURCES INC.

HOLDING IN COMPANY

Mano River Resources Inc. ("the Company") was informed on 11 February 2004 that
on 12 December 2003 City Natural Resources High Yield Trust PLC purchased
10,000,000 common shares in the Company. City Natural Resources High Yield Trust
PLC now holds 10,000,000 common shares in the Company representing approximately
4.75% of the issued share capital.

On behalf of the Board of Mano River Resources Inc.
Tom Elder
President and CEO

For further information on Mano River Resources and its exploration programme,
you are invited to visit the Company's website at www.manoriver.com or contact
one of the following:

Tom Elder President and CEO UK +44 (0) 1235 810 740
Guy Pas Chairman Switzerland +41 22 758 2151
Anthony Rhatigan Vice-Chairman Mobile +44 (0)7785 297 348
Dru Edmonstone Seymour Pierce UK +44 (0) 20 7107 8000
Gary Middleton Capital PR UK +44 (0) 207902 0703


The TSX Venture Exchange has not reviewed and does not take responsibility for
the adequacy or accuracy of this release




This information is provided by RNS
The company news service from the London Stock Exchange

END

Anyone have an interest or opinion on Galahad Gold ?-sorry don't know the epic.

African Gold (AFG) is looking sexy for next week!!!

What do u know Sue Helen?? You inputs are alwasy welcome?

See AFG thread.

Press Comment: Independent Market Report

African Gold, which recently unveiled the purchases of gold assets in Ghana's Ashanti Belt, ticked 0.12p higher to 14.37p on whispers that another acquisition is on the cards. According to yesterday's market gossip, the deal would be quite substantial for the AIM listed company, which is presently valued at 30m. A source close to African Gold confirmed that the group was looking at a major acquisition but indicated that a deal is by no means imminent.

Thanks SH. your inputs are always greatly appreciated. Yes AFG is looking good, I bought some last Friday when it was 10% down to 12.5p. Most mining companies in the Gold trade have been either down or sideways trading. Not to panick as Gold prices are on the move up again.

PET have put forward their tenders for oil survey in Iraq. The shares took a massive dip few days before the announcement, and after the RSN and in two days the shares managed to score nearly 70% upward movement. If one tender is awarded then those who invested early will see lots of money but if none is awarded just abandon the shares asap. It is all or nothing wiht this one.

I am looking to purchase CDN, EEN & MANA Any views.

Xm,

MANA look a reasonable bet, (I hold), but why is everyone ignoring Firestone Diamonds, (FDI)?

Last year their turnover was in excess of 1 million, and profit came in at 162,000, a fall on the previous year due to the strength of the S.African rand.

Firestone are due to open their BE JV Bonte Koe mine very soon, and they have two very interesting procpects in Groen River, South Africa, and Mopipi in Botswana.

Firestone have no debt to speak of.

Their 14 million market cap compares,imho, VERY well with AFD, 34 million per ADVFN!

Minmet are about to fly, all the signs are their, any comment welcome, what do you lot think?