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

cheers GF.

Lifted from advfn..

seem to have been some updates to price targets from analysts

Troika Dialog have Buy with PT 891.77p
Unicredit have Buy with PT 898.32p

If it gets to those levels i think it is on the verge of FTSE100 entry as it would be about 90th largest company by market cap.

some idiot recently on this thread predicted this to plummet to under 400p......what an idiot when it was about to join ftse plus gold price forecast to go up.....and plus merger solving any issues

So what?

personally, i think oil is more likely to end 2009 >$70 than gold is to finish >$1000 ..... you will note that i have ignored the super-hype of recent days that gold will shortly(?) rocket to $1500, which io think has about the same credibility as when oil was deemed a racing certainty to be >$200.

that said, POG is about the cheapest gold producer in the world and has now brought ORE back into the fold, i guess at a lower price than they sold it off in the first place! ...... cash benefit apart, ORE diversifies POG's commodity assets, and that can be no bad thing.

on the negative, side, POG operates out of russia, which is notorious for its political shenanigans, though of course the hambro family has more than a century's experience in dealing with the politicos there.

the chart below is also showing good strength, so given a fair wind, there could well be some decent profits to be made in the near future ...... but don't forget that not only has NY now risen for 7 straight weeks, but POG itself can be frighteningly volatile.



my gut feeling on this saturday morning would be to wait for a bad day (next week?) before jumping in

POG (601p) From Minesite:-

April 27, 2009

The Newly Completed Merger Between Peter Hambro Mining And Aricom Makes Sense In Both Russia and China.

By Charles Wyatt

The Russians should really give Peter Hambro the Order of Lenin, or whatever the highest Russian honour is these days. He's spoken up for the country through thick and thin. It goes without saying that Russia is not the easiest country in which to operate as both Highland Gold and Celtic Resources found to their cost.

Highland Gold suddenly discovered, a few years ago, that most of its underground equipment was being claimed by a Russian entity, while Celtic Resources was acquired by Severstal after a long drawn out campaign that certainly did not conform to the Queensberry rules. Throughout all that time PETER HAMBRO MINING has soldiered on, but from early on the company has had the advantage of a Russian partner with enough muscle to keep the oligarchs and bureaucrats at bay.

Back in 2004 Peter Hambro Mining spun-off Aricom - again with the same Russian partner involved - onto the AIM market. At that time the companys only asset was the Olekma titanium project. Since then Aricom, under the guidance of Jay Hambro, has grown apace so that its assets now include the Kuranakh titanomagnetite project where mining has started. It also has two advanced iron ore projects K & S where a pre-feasibility study has been carried out which demonstrates both the ability of the project to operate and its economic potential, and Garinskoye where a scoping study estimates approximately US$2 billion of net present value. Now Aricom and Peter Hambro are coming back together again.

The deal is an all-paper transaction and the enlarged Peter Hambro Mining will advance from the AIM market to the Official List of the London Stock Exchange. This move will have two immediate advantages. First, its size will gain respect from the Russians and it is unlikely to encounter much interference with its operations and second, the FTSE index committee is expected to enter the company on the FTSE 250 index at its meeting scheduled for June. The market capitalisation combined with good liquidity and sufficient free float for a full weighting should bring in some new institutional investors. Ironically, therefore, this merger with a non-gold company should help to increase the visibility of the new company in the gold sector as it is already in the prestigious FTSE Gold Mines Index. And that is the sector, thanks to the chaos in the worlds finances and Chinas very sensible plan to buy ever more gold assets, which looks like flourishing for some time to come.

Simultaneously with the completion of this deal Peter Hambro Mining announced its preliminary results for 2008 which showed production increasing by 36 per cent to 393,600 ozs gold, at the upper end of the target given earlier in the year of 350-400,000 ozs. It may seem a little snide at this stage to remind readers that back in January 2004 Peter Hambro and his Russian colleagues ran a workshop for analysts at which a target was set to reach production of 1 million ounces by 2009. It seemed ambitious at the time given that production at the time was 250,000 ozs, but a week earlier a number of analysts from institutions including JP Morgan, Citibank and Merrill Lynch visited the Pokrovskiy operations. They were very happy with what they saw, said Peter Hambro, and appeared satisfied that the target would be reached. Perhaps this gave an insight into analysts being told what they wanted to hear and a promoter wanting to raise the bar for any mid-tier producer contemplating a bid.

In some ways the 2008 results were a bit of a disappointment to investors as the final dividend was cut. The reason for this was the need to conserve cash, which is fair enough and the pill was sweetened with assurances that Peter Hambro and Pavel Maslovskiy would take a 50 per cent cut in their bonuses. It also reflected the fact that although EBITDA rose by 53 per cent to US$136 million, earnings took a hit from non-cash items and other costs totaling US$98 million and fell from US47.6 cents to US27.1 cents. These non-cash items consisted of foreign exchange losses, higher depreciation and a fair value adjustment of derivatives, while other costs rose due to higher wages and increased interest payments. Not too much should be read into all this as it is usual to give the stable a fair old clean out at the time of a deal such as this.

Looking ahead there is plenty of room for encouragement. In 2008 the average gold sales price was US$845/oz, whereas this year the price has been well into the US$900s, and even the more pessimistic analysts in the annual competition run by the London Bullion Market Association reckon it should average US$881/oz for the year. In addition to this production is bound to rise as operations at the Pioneer mine enter their second stage this year, adding to that from Pokrovskiy. Meanwhile at Malomir the recent discovery of non-refractory ore means that the anticipated spend on a recovery system is postponed while early production from the Quartzitovoye ore body continues. As to costs, benefits from a weaker rouble, lower energy prices and a slowdown in inflation were being felt toward the end of 2008 and should continue this year.

From a car on the way to the airport to return from Moscow, Peter Hambro points out that there is another bit of logic behind the deal which the market does not seem to appreciate. Aricom was not on the Chinese radar screens, but the enlarged Peter Hambro Mining certainly is. This was borne out during a recent visit to Beijing when it was made clear that off-take agreements and help with development funding were now on the table. Aricoms iron ore deposits are close to the Chinese border - much, much closer than the ports on the north coast of Australia.

POG (601p) From Minesite:-

April 27, 2009

The Newly Completed Merger Between Peter Hambro Mining And Aricom Makes Sense In Both Russia and China.

By Charles Wyatt

The Russians should really give Peter Hambro the Order of Lenin, or whatever the highest Russian honour is these days. He's spoken up for the country through thick and thin. It goes without saying that Russia is not the easiest country in which to operate as both Highland Gold and Celtic Resources found to their cost.

Highland Gold suddenly discovered, a few years ago, that most of its underground equipment was being claimed by a Russian entity, while Celtic Resources was acquired by Severstal after a long drawn out campaign that certainly did not conform to the Queensberry rules. Throughout all that time PETER HAMBRO MINING has soldiered on, but from early on the company has had the advantage of a Russian partner with enough muscle to keep the oligarchs and bureaucrats at bay.

Back in 2004 Peter Hambro Mining spun-off Aricom - again with the same Russian partner involved - onto the AIM market. At that time the companys only asset was the Olekma titanium project. Since then Aricom, under the guidance of Jay Hambro, has grown apace so that its assets now include the Kuranakh titanomagnetite project where mining has started. It also has two advanced iron ore projects K & S where a pre-feasibility study has been carried out which demonstrates both the ability of the project to operate and its economic potential, and Garinskoye where a scoping study estimates approximately US$2 billion of net present value. Now Aricom and Peter Hambro are coming back together again.

The deal is an all-paper transaction and the enlarged Peter Hambro Mining will advance from the AIM market to the Official List of the London Stock Exchange. This move will have two immediate advantages. First, its size will gain respect from the Russians and it is unlikely to encounter much interference with its operations and second, the FTSE index committee is expected to enter the company on the FTSE 250 index at its meeting scheduled for June. The market capitalisation combined with good liquidity and sufficient free float for a full weighting should bring in some new institutional investors. Ironically, therefore, this merger with a non-gold company should help to increase the visibility of the new company in the gold sector as it is already in the prestigious FTSE Gold Mines Index. And that is the sector, thanks to the chaos in the worlds finances and Chinas very sensible plan to buy ever more gold assets, which looks like flourishing for some time to come.

Simultaneously with the completion of this deal Peter Hambro Mining announced its preliminary results for 2008 which showed production increasing by 36 per cent to 393,600 ozs gold, at the upper end of the target given earlier in the year of 350-400,000 ozs. It may seem a little snide at this stage to remind readers that back in January 2004 Peter Hambro and his Russian colleagues ran a workshop for analysts at which a target was set to reach production of 1 million ounces by 2009. It seemed ambitious at the time given that production at the time was 250,000 ozs, but a week earlier a number of analysts from institutions including JP Morgan, Citibank and Merrill Lynch visited the Pokrovskiy operations. They were very happy with what they saw, said Peter Hambro, and appeared satisfied that the target would be reached. Perhaps this gave an insight into analysts being told what they wanted to hear and a promoter wanting to raise the bar for any mid-tier producer contemplating a bid.

In some ways the 2008 results were a bit of a disappointment to investors as the final dividend was cut. The reason for this was the need to conserve cash, which is fair enough and the pill was sweetened with assurances that Peter Hambro and Pavel Maslovskiy would take a 50 per cent cut in their bonuses. It also reflected the fact that although EBITDA rose by 53 per cent to US$136 million, earnings took a hit from non-cash items and other costs totaling US$98 million and fell from US47.6 cents to US27.1 cents. These non-cash items consisted of foreign exchange losses, higher depreciation and a fair value adjustment of derivatives, while other costs rose due to higher wages and increased interest payments. Not too much should be read into all this as it is usual to give the stable a fair old clean out at the time of a deal such as this.

Looking ahead there is plenty of room for encouragement. In 2008 the average gold sales price was US$845/oz, whereas this year the price has been well into the US$900s, and even the more pessimistic analysts in the annual competition run by the London Bullion Market Association reckon it should average US$881/oz for the year. In addition to this production is bound to rise as operations at the Pioneer mine enter their second stage this year, adding to that from Pokrovskiy. Meanwhile at Malomir the recent discovery of non-refractory ore means that the anticipated spend on a recovery system is postponed while early production from the Quartzitovoye ore body continues. As to costs, benefits from a weaker rouble, lower energy prices and a slowdown in inflation were being felt toward the end of 2008 and should continue this year.

From a car on the way to the airport to return from Moscow, Peter Hambro points out that there is another bit of logic behind the deal which the market does not seem to appreciate. Aricom was not on the Chinese radar screens, but the enlarged Peter Hambro Mining certainly is. This was borne out during a recent visit to Beijing when it was made clear that off-take agreements and help with development funding were now on the table. Aricoms iron ore deposits are close to the Chinese border - much, much closer than the ports on the north coast of Australia.

another great day on this share......god bless russia

at least that idiot who was trying to scare people into elling their shares has left this thread......cant stand these people trying to scare people into buying or selling shares by vague comments or predictions.

anyway, pog is on up up up.....question is when to sell

it's a very good company indeed, though the ride can be quite scary at times

Has anybody seen the estimates re gold production for the current year and beyond?

yes, peter hambro hav given predictions for next few years in recent communications about a month or so ago......they look very impressive.


could see this back to 15 quid

more likely to be heading back towards 200 dma as london heads sharply south tomorrow - or at least that is my guess as to what will happen judging by NY and other issues - see my post on FTSE thread

london is south.....any further and its in the channel........no bad thing though!!

15 quid but not tomorrow........all this hurry with money is why capitalism and western world has failed........every other country is overtaking the west.......cant believe they ae still carrying on with failed capitalist set-up

a bit hypocritical aren't you? ..... you are clearly happy enough to subscribe to capitalism and even the chinese and russians have adopted the system, albeit sometimes considerably bent to suit.

Lady in red comes to mind.......

Gold is "out" for now, as money goes out of gold and back into stocks.

Certainly one would suggest for year end from now gold is down and oil should be up.

Is this the "bull run" as if it is gold should continue downwards.

i agree that gold and oil should move in opposite directions, but we all know that that is not necessarily the case ...... and of course POG sp does not necessarily react in the same way as bullion - i.e. it is bought/sold in its own rights.

nevertheless, i fully concur that crude is much more likely to motor ahead during 2009 than bullion

If we didn't have a capitalist set-up you wouldn't be able to buy & sell shares so if you're so against the system why are you in the markets?!

marx predicted collapse of banks etc in 1800s with greed of capitalism........communist society dont believe in banking, globalisation etc and so they wouldnt have suffered like the west........also society there has little in way of vandalism or violence under communist set-up and their football teams, athletes were better as people were made to excel at what they do in life. all these countries now have become very poor at all these things since capitalism was set-up.......and when you visit these countries like russia, you know more or less you will meet a russian unlike most western countries which is full of dis-trust etc between eac other.

You idiot, communist athletes were pumped full of drugs to ensure they excelled.

now let's have a round of applause for the gulags, the mass deportations and mass executions ...... but of course russia is no longer a communist regime in any sense of the word ..... but how about a paeon of praise for that fine example of a true marxist state as exemplified by north korea