A number of small emerging gold producers that I have identified and bought this week are:
1. Republic Gold (RAU): This company has a number of interesting deposits - a large iron ore resource in Bolivia, which adjoins a Jindal Group project (Indian steel company). It also has a gold resource in Bolivia which will achieve feasibility study stage next year. In Queensland it has a small resource suited to heap leaching. It has not really responded to the gold price increase, and it has $5mil in cash.
2. Adamus Resources: This company has gold interests in Africa. They are an emerging producer, they have a solid resource base, which is likely to expand.
3. NorthWest Resources (NWR): High gold prices favour those with the most advantageous position. At current share price NWR are capitalised at just $7.2mil, yet they have 370,000 oz of gold, a small treatment plant, $5.7mil in cash, and resource upside. I must confess to finding such small vein deposits messy, but the they are just too cheap.
There is a few strategically placed medium-sized emerging gold producers in Africa which are going to be taken over by larger companies, or similar sized companies seeking to increase their PER profile in international markets. I would not be surprised to see Ampello Mining (AMX.ASX), Perseus Mining (PRU.ASX) or Adamus Resources (ADU.ASX) taken over in the next 6 months. Perhaps just as likely is a three-way merger between these companies. Of course no CEO likes to lose their job, so it would depend on other opportunities they have. You didn't really expect them to act in shareholder's interests did you? :) Well least not primarily.
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Andrew Sheldon www.sheldonthinks.com
1. Republic Gold (RAU): This company has a number of interesting deposits - a large iron ore resource in Bolivia, which adjoins a Jindal Group project (Indian steel company). It also has a gold resource in Bolivia which will achieve feasibility study stage next year. In Queensland it has a small resource suited to heap leaching. It has not really responded to the gold price increase, and it has $5mil in cash.
2. Adamus Resources: This company has gold interests in Africa. They are an emerging producer, they have a solid resource base, which is likely to expand.
3. NorthWest Resources (NWR): High gold prices favour those with the most advantageous position. At current share price NWR are capitalised at just $7.2mil, yet they have 370,000 oz of gold, a small treatment plant, $5.7mil in cash, and resource upside. I must confess to finding such small vein deposits messy, but the they are just too cheap.
There is a few strategically placed medium-sized emerging gold producers in Africa which are going to be taken over by larger companies, or similar sized companies seeking to increase their PER profile in international markets. I would not be surprised to see Ampello Mining (AMX.ASX), Perseus Mining (PRU.ASX) or Adamus Resources (ADU.ASX) taken over in the next 6 months. Perhaps just as likely is a three-way merger between these companies. Of course no CEO likes to lose their job, so it would depend on other opportunities they have. You didn't really expect them to act in shareholder's interests did you? :) Well least not primarily.
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Andrew Sheldon www.sheldonthinks.com
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