Lihir Gold (LGL)

So what's good in gold stocks?

I would suggest in this first phase we want to be investing in mature gold producers with a significant resource base and output. We are looking at pure gold producers. Lihir Gold was particularly attractive when oil prices were high because although it was off-grid, it was generating geothermal energy. With oil prices at $US62/barrel, it has lost that cost advantage. I have not done any research on this company, but because its a mature mine, its likely to be a little bit more pricey (unit cost per ounce wise) now because its a deeper mine, but that's ok because gold prices are going to do very well. The appeal is that it is likely to be higher unit cost, its an estblished producer and its close to support levels. I will follow up with further readings. The other good news is that its no longer a one-mine company. It is taking steps to diversify. Our target entry price on this stock is $1.36, but place your order because I think it will not close at those levels.
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Andrew Sheldon www.sheldonthinks.com