1. Red 5 Ltd: This stock has moved from 3c to 14c. By no means is this stock over-valued, though I would caution people about the 'Philippines risk' even if that risk is less apparent in the NE region of Mindanao. This is a historic mining area, and the company claims to have good relations with the community. Nevertheless there are risks in this country. Misinformation seems to rule.
2. A1 Minerals: This company will produce 30,000 oz per annum from Xmas 2009, with plans to use the proceeds to fund expansion to 50,000 oz per annum. They have a 1.7mil oz deposit. The plant is funded and under development. The company is capitalised at just $37mil, so still good buying even though it has moved up from a low of 7c to 33c today.
3. Integra Mining (IGR.ASX) is another emerging gold producer starting production next year. It plans to expand output to 100,000 oz per annum.
4. Navigator Resources (NAV.ASX) has lower grade material, but it is developing two projects, having acquired Bronzewinger for $34 million. It has just 4 years life remaining unless they can find more ore.
5. Marengo Mining (MGO.ASX): Marengo is a long term stock pick which has a large scale copper-gold deposit in PNG. The CEO Les Emery is a straight shooter. This size project will likely attract Chinese investment or Xstrata investor. This is definitely a good buy. The 15c mark is support, so hopefully we will find that price on a weak day.
These are the best play at the moment.
Andrew Sheldon www.sheldonthinks.com