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

cheers GF.

your wife tells me that's about all you're capable of

Tipped in todays' SHARES as a buy, and also the item below from yesterdays' Telegrah. One thing that particularly caught my eye was the earnings multiple
11.5 versus Randgold at 39 !! I have heard of risk being priced in,but this seems to be rather overstating it.







Questor share tip: Buy Petropavlovsk for iron ore as well as gold
News that large-cap miners had forged an iron ore agreement with Japanese steel mills to increase prices by 90pc is good for BHP Billiton and Rio Tinto. It is also good for Russian gold producer Petropavlovsk.

By Garry White, Questor Editor
Published: 7:00AM BST 31 Mar 2010

Petropavlovsk

11.69 -6p


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The group, which used to be known as Peter Hambro Mining, also has an important iron ore project, which some analysts believe could be worth 5 a share.

Iron ore prices are negotiated at what is known as a "free on board" price. This means that the iron ore producer is paid to deliver the mineral to a ship in a port but the purchaser has to pay the freight costs to get the goods to its steel mills. However, new contracts are likely to be at the "landed price", which means miners will pay the shipping costs.

This is where things can get expensive. Vale, the world's largest iron ore producer, mines its ore in Brazil. BHP and Rio Tinto mine their ore in Australia. Both of these locations are a significant distance from China, the largest iron ore importer in the world.

Petropavlovsk's iron ore operations are in Russia not far from the border with China. Once a bridge is completed across the Amur River, it can be delivered to Chinese steel mills by train very cheaply. Even without the bridge, transport costs will be a fraction of the major suppliers'.

The project is at an early stage but the company said last week that it had agreed terms for a
10-year loan from Industrial and Commercial Bank of China for 85pc of the funding for the first phase of the Kimkano-Sutarskiy (K&S) iron ore project in Far East Russia. The first stage of development is expected to cost $400m (265m).

This initial phase is expected to deliver capacity of 3.2m tonnes of 65pc iron ore concentrate a year from K&S by 2013.

There is also talk of a potential spin-off of the assets in Hong Kong. This is interesting because the iron ore operation was already spun off in London as Aricom.

Aricom was demerged in 2003, with Peter Hambro's son, Jay, as chief executive.

However, the slide in iron ore prices caused by a fall in demand from China resulted in Aricom's shares plunging from a high of 106p to a low of 5p. The spin-off was brought back into the group in an all-share deal a year ago.

However, despite the excitement of the iron ore division, the company is first and foremost a gold miner. Last week's full-year results were very good.

Petropavlovsk significantly upgraded its gold reserves, with measured and indicated gold resources up by 90pc to 8.2m ounces. There is also an additional 3.6m ounces of inferred resources to add to the mix.

In the 12 months to December 31, pre-tax profits rose to $197m from $40.3m in 2008 on revenues that rose 24pc to $742.3m.

The group is not currently paying a dividend and it expects to produce between 670,000 and 760,000 ounces in 2010, which brings the possibility that it could produce more than its FTSE 100 peer Randgold Resources.

The shares were first recommended as a buy on July 21 last year at 626.2p and they are now 87pc ahead compared with a market up 27pc. They are still trading at a sharp discount to the rest of the precious metals sector. The current-year earnings multiple is 11.5 compared with 39 for Randgold. With the iron ore operations appearing to have a minimal valuation in the current rating, the shares remain a buy. However, they are likely to remain volatile

In todays Shares reccommendation, Fairfax values POG at 17.95,50% above the current price.

sure glad i topped up yesterday! ..... offsets some other shit like DES!

you can get tablets for the sh*ts cynic./.

cures the symptoms but not the cause

Another point ahich should help POG is the entry into the FTSE (barring a repeat of the fiasco last time around!)

gold play today....POG up 85p and climbing.

Gold now at $1238. A new all time high

13 here we come....

Top sliced pog at 2.94p as seems to be stuggling to get past 13 nice profit all the same, kept some for another charge later on...

Petropavlovsk upgraded to buy from hold at Citigroup

Petropavlovsk agrees $60m iron ore business investment
StockMarketWire.com
Mining group Petropavlovsk has agreed terms for a $60m equity investment in its non-precious metals division by Hong Kong-based investors.

The group had been evaluating funding options for its iron ore projects. It says the investment will value its non-precious metals division at $860m.

Petropavlovsk is also exploring strategic options including a possible listing on the Hong Kong Stock Exchange

The investors are Asia Resources Fund, a subsidiary of General Enterprise Management Services (GEMS), and CEF Holdings. They will invest $50m and $10m respectively in return for an equity stake in a new holding company for the division.

Chairman Peter Hambro said, 'We are extremely pleased to have GEMS and CEF committing capital to our non-precious metals business, and their participation in our growth story is testimony to the underlying confidence in the opportunities in the iron ore market in China.

'Our potentially world-class iron ore business is focused on the nearby Chinese market with considerable economic advantages in both geography and transport costs over most other major iron ore suppliers to the Chinese market - we are c.19,000km closer to China than our Brazilian competitors.

'We believe that these developments are significant steps in delivering the value of the non-gold assets of Petropavlovsk.'

Petropavlovsk also says advanced debt finance discussions to fund stage 1 of its Kimkano-Sutarskiy iron-ore mining operation are progressing well with Industrial and Commercial Bank of China and Sinosure, the Chinese state export credit agency.

The first iron-ore operation, Kuranakh, is ramping up following successful plant commissioning in May.

Story provided by StockMarketWire.com

Gold 1240 +

Rumoured to be valued highly enough to go in to the FTSE 100 on wed.

And with the gold price again at $1247. which is equal to its' all time high of a few months ago, should auger well

looks like going to miss out on promotion again....BNZL is 90th place at the mo..

Yes ,but there are 100,not 90

Questor share-tips: Petropavlovsk is a buy
Monday was another one of negative sentiment in the market, as sovereign debt concerns combined with worries over growth in the healthier economies. Fears of a double-dip recession are growing.

By Garry White, Questor Editor
Published: 6:15AM BST 08 Jun 2010

Questor continues to believe that investors should place money in the markets on a regular basis. Quality companies with good prospects especially ones with high dividend yields should prove great investments over the medium term.

Another good investment especially at times when fear is driving the markets is gold. The price, however, is hovering close to all-time highs and this will make some investors nervous. Because of this, Questor feels that gold companies trading on lower earnings multiples are the best way to play the sector at the moment.



Questor: Hochschild will shine from silver exposureFTSE 100 company Randgold Resources is the largest pure-gold, blue-chip play. It is trading on a December 2010 earnings multiple of 43.4 times. This means the shares would be highly vulnerable to any pull back in the price of the metal.

However, Petropavlovsk formerly Peter Hambro Mining is trading on a current-year multiple of just 11.2 times, reflecting the perceived market risk of investing in Russia. But, as Questor noted in March, the company is also a play on iron ore and there was some good news on this front yesterday.

The iron-ore assets were originally spun off as Aricom in 2003, but the implosion in financial markets and in particular the mining sector after the credit crisis caused the shares to crash and the company was bought back into the group. Ultimately, this unit is expected to be spun off in Hong Kong, but climate for new issues is negative at the moment, so this is unlikely to be imminent.

The good news yesterday was that some serious Asian investors have bought into the first phase of Petropavlovsk's iron ore developments. Two Hong Kong-based funds will invest $60m (41.3m) in the initial stage of the iron-ore of the project Asia Resources Fund will put in $50m and CEF Holdings $10m. This first phase is expected to require $400m of investment in total. In March, the company secured debt financing from Industrial and Commercial Bank of China for up to 85pc of the first phase. The two funds that bought in yesterday secured the remaining 15pc.

Petropavlovsk says the investments value its equity in the non-precious metals division at $860m. This is less than the $1.5bn valuation of the operations mooted by some, but it still implies the iron ore unit is worth about $3.30 per Petropavlovsk share. This looks sensible at this stage of development and given the market backdrop. This $1.5bn valuation could be eventually be proved correct.

There is also a slight chance that Petropavlovsk will enter the FTSE 100 when the index reshuffle is unveiled later this week. However, Questor suspects that the company will miss out on promotion by a whisker again.

A company has to have a market capitalisation equivalent to the business at number 90 in the FTSE All-Share index for inclusion as a blue chip. According to analysis by City broker Fairfax, Petropavlovsk was at number 91 yesterday morning so, if gold prices hold up, the company is a real contender for inclusion later in the year.

The shares were first recommended as a buy on July 21 last year at 626.2p and they are now 96pc ahead compared with a market up 14pc.

There is no doubt that the shares will be volatile, but over the medium term the value in this business should be reflected in its share price, so Questor maintains a buy on the shares.

A new record gold price today of $1256 certainly boosting the sector