http://www.kitco.com/charts/livegold.html

cheers GF.

Statement re Possible Offer

"Aricom plc ('Aricom' or the 'Company') notes the recent share price movement and confirms that it is in preliminary discussions with Peter Hambro Mining Plc ('Peter Hambro') which may or may not lead to an all share offer being made for the Company at a substantial premium to the current share price.

There is no certainty that any offer will be forthcoming. A further announcement will be made in due course as appropriate."

POG spiked to 440p on the news.

Peter Hambro Mining - statement regarding possible offer for Aricom

Peter Hambro Mining Plc ('Peter Hambro Mining') notes the announcement made today by Aricom plc ('Aricom') confirming that it is in preliminary discussions with Peter Hambro Mining which may or may not lead to an all share offer being made by Peter Hambro Mining for Aricom.

Peter Hambro Mining confirms that it is in preliminary discussions with Aricom regarding a possible offer by Peter Hambro Mining for the entire issued share capital of Aricom. The consideration for any such offer would comprise shares in Peter Hambro Mining. The discussions are at a very preliminary stage and there is no certainty that any offer will be made or, if such an offer is forthcoming, the terms of such offer."

I think I am correct in saying that POG is run by the father & ORE is run by the son.
Smoke & mirrors spring to mind!!!

Correct Harry.

Down 20p at 360p the market is a bad mood right now .

Bought back in again on the SP of gold rising and looking very strong with currencies looking weak and recession hitting the UK and the rest of the world.

Recent broker recos-

Peter Hambro Mining PLC

FORECASTS
2008 2009

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)


Investec Securities
20-01-09 BUY 48.92 39.94 17.84 85.83 70.06 17.84

Arbuthnot Securities
21-01-09 NEUT 55.14 47.57 7.49 121.89 99.17 7.49

Worth waiting to see what happens with the ORE deal, imo. If ORE shares become POG shares, the ratio will be critical. POG then becomes an iron ore producer, which in today's market is not great news, but when Far Eastern economies pick up again, will stand POG in good stead.

Rising sp of gold should underpin sp for a while not forgetting its one of the lowest cost producers around.

Gold moving up very strongly....

http://www.kitco.com/images/live/gold.gif

http://www.reuters.com/article/marketsNews/idAFLN4501620090123?rpc=44

Ideally set up for monday now.

Gold gone over $900..

http://www.bloomberg.com/apps/news?pid=20601012&sid=aNEEeJPVd7uc&refer=commodities

Author: Dorothy Kosich 12 Jan 2009

RENO, NV -

CIBC World Markets has increased its 2009 gold price prediction from $900/oz to $950/oz and introduced a 2010 gold price of $1,050/oz.

In a recent report, CIBC metals analysts Barry Cooper, Brian Quast, and Cosmos Chin said, We further expect pure gold plays will outperform gold/base metal mixed plays in the current environment especially since the latter has not suffered full adjustments to the lower pricing regime for copper and zinc."

The analysts asserted that gold equities are 40% undervalued relative to trading levels in the first six months of 2008.

"The events of 2008 should have pushed gold to higher levels than $1,000/oz in our opinion," the analysts said, citing the collapse of Fannie Mae and Freddie Mac, multiple bank failures, $50 billion in swindles, the collapse of the Big 3 automakers, and the downfall of the housing market. Instead, they noted, gold performed as "what every insurance policy does; it maintained the owner's wealth and certainly outperformed all other commodities during the crisis."

Suggesting that recession "hollow" will last two years, the analysts forecast that gold will also show strength for those two years. "It is our contention that regardless of the economic conditions, it is the uncertainty factor that drives gold's appeal," they said. "That uncertainty factor we believe is at an all-time high and unlikely to dissipate in 2009."

Gold Climbs to Three-Week High as Fund Demand Reaches Record

By Nicholas Larkin and Stuart Wallace

Jan. 23 (Bloomberg) -- Gold advanced to a three-week high in London as investors increased holdings of the metal on concern the global recession will deepen.

Assets in the SPDR Gold Trust, the worlds biggest exchange- traded fund backed by bullion, expanded 1.6 percent to a record 819.11 metric tons, according to the companys Web site. Stocks fell across Asia and Europe today, following declines in the U.S. The U.K. government confirmed the country is in a recession as the economy in the fourth quarter shrank the most since 1980.

Given the ongoing deterioration of the global economies and declining risk appetite of investors we anticipate further safe-haven related inflows through the ETFs, James Moore, an analyst at TheBullionDesk.com in London, wrote today in a note.

Gold for immediate delivery climbed as much as $22.65, or 2.6 percent, to $879.65 an ounce and traded at $875.56 as of 11:50 a.m. in London. The metal has advanced 3.8 percent this week. February futures rose $17, or 2 percent, to $875.80 in electronic trading on the Comex division of the New York Mercantile Exchange.

The metal rose to $873 an ounce in the morning fixing in London, used by some mining companies to sell production, from $860 at yesterdays afternoon fixing. The commodity is now little changed this year after sliding as much as 9 percent.

The SPDR holdings are equal to about four months of global mine production. Bullion held in exchange-traded funds climbed to a record 1,190 tons last year, the World Gold Council said on Jan. 20.


Investment demand is the most important factor in the gold market at the moment, UBS AG analyst John Reade said today in a note. Over the past year, ETF inflows have accompanied this strong physical investment demand and even in spite of the strength of the U.S. dollar, we see no reason for this to change.

Europes manufacturing and service industries contracted for an eighth month in January. Initial claims for unemployment benefits matched a 26-year high in the U.S. last week, while housing starts slumped to a record in December.

Despite the stronger dollar, which should be negative for gold, the strong investment demand is the main factor, said Eliane Tanner, an analyst at Credit Suisse Group in Zurich. There is a risk from the stronger dollar over the short term that could trigger some selling.

Weak Pound

The dollar gained as much as 1.5 percent against a basket of six major currencies. Gold typically moves in the opposite direction to the greenback. Still, a stronger dollar benefited investors holding gold in sterling and euros. Bullion reached a record 648.48 pounds today and touched a three-month high of 687.50 euros.

ING Groep NV raised its 2009 forecast for gold to $800, from $750 previously. The silver estimate increased to $11 an ounce, from $10.50, while the platinum outlook strengthened to $900 an ounce from $850.

Silver for immediate delivery rose 1.5 percent to $11.58 an ounce today in London, platinum added $2.75, or 0.3 percent, to $931.25 an ounce and palladium retreated $1, or 0.5 percent, to $184.25 an ounce.

To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net; Nicholas Larkin in London at nlarkin1@bloomberg.net

Last Updated: January 23, 2009 07:19 EST

cracking start to the week...

Peter Hambro delivers 36% gold production trise
MoneyAM

Peter Hambro Mining reports a 36% rise in gold production for 2008, to 393,600 oz, and is forecasting between 460,000 oz and 510,000 oz in 2009.

The group says its total attributable gold production - consisting of 100% of production from the groups subsidiaries and the relevant share from joint ventures - was at the upper end of its 2008 production target of 350,000-400,000 oz.

Gold production from the Pokrovskiy mine was up 13% on 2007 and beat its production target by 19%. Production from the Pioneer mine started in June June and yielded 72,900 oz by the end of the year, against a target of 72,000 oz.

Production from alluvial operations increased by 38%, while attributable production from joint ventures fell 15%.

The group's average realised gold sales price of $845/oz was 26% up on 2007.

Executive chairman Peter Hambro, said, 'I am very pleased to report the 36% increase in annual attributable gold production which we achieved in 2008. Yet again the company has met its production target.'

He added, 'Successful realisation of the group's 2008 expansion plans instills confidence in the group's 2009 production target of 460,000 to 510,000 oz.'

Gone through resistance at 440p.

And gold sp on the rise...

http://www.kitco.com/images/live/gold.gif

POG looks good but can't make my mind upo whether or not to commit more money to ther market ..... btw, was glad to see PFC securing a massive contract ..... i think that is a cracking company though i do not currently hold

Yep cyners Im the same with PFC its on my watch list and been in and out on a few occasions just lately.

I suppose with POG its a case of wether you think the sp of gold will stay around or move up over $900 or fall.

Pluses,

forced sellers ie, hedge funds now exhausting supply of stock to market

ETFS demand rising

Currencies in general look weak and so do economies.

minuses,

physical demand from india poor.

Im of the former, but then I would be and added twice this morning.

Makes for an interesting decision.