Go Go Go - MGO - Marengo!

Equity Analyst: Peter Koay

Date: 16 March 2011

Target Price: ~A$1.00/share (18-24 months investment horizon)

MARENGO MINING LTD (MGO)
The next OZ Minerals in the making

PNG can be considered to be the upcoming rising star as a mining destination of the 21^st century. It is a resources rich nation, soon to be able to get into the ranks of Australia and Chile.

Now, how do we get exposure to this upcoming mining giant country? Sifting through a number of PNG mining companies that are listed on ASX over a weekend, a very interesting stock had been discovered to have the potential to become the next OZ Minerals, i.e. MARENGO MINING LIMITED. (By the way, OZ Minerals had recently been a darling stock in ASX as it’s generating a huge pile of cash from its Prominent Hill copper and gold mine.)

OZ Mineral’s Prominent Hill mine has a remaining 8 year mine-life from now, with latest reserves (as at Jun 2010) of 5.5 billion pounds of copper (1.135 billion pounds Measured, 2.43 billion pounds Indicated, 1.88 billion pounds Inferred) and 3.1 million ounces of gold (0.5Moz Measured, 1.4Moz Indicated, 1.2Moz inferred).  Refer to http://www.asx.com.au/asxpdf/20101109/pdf/31trr9pnqgpjlc.pdf .

Assuming copper price of US$4/lb and gold of US$1300/oz, that means OZ Minerals has $22B of copper and $4B of gold, a total of US$26B of resources (Measured+Indicated+Inferred).

Comparing MGO’s resources with OZL’s resources (refer to http://asx.com.au/asxpdf/20110228/pdf/41x36stqj3wspq.pdf) , MGO currently has 6.5 billion pounds of copper (1 billion pounds measured, 1.9 billion pounds indicated, 3.6 billion pounds Inferred). Assume same copper price of US$4/lb, it has a whopping US$26B worth of COPPER!!

In addition, MGO has a total of 204M pounds of Molydenum (45M pounds Measured, 68M pounds Indicated, 91M pounds Inferred). Molydenum is a material used to manufacture high corrosion-resistance stainless steel (e.g. super duplex steel). Assume price of Molydenum of US$20/lb, this means MGO has US$4B worth of Molydenum!!

This brings it to a total of US$30B worth of resource!!! MGO’s resource can be even bigger than OZL!! Doing a sensitivity analysis, you may say that that’s just a lot of inferred category stuff in MGO’s resource statement. If the inferred category is taken out and a comparison is made, OZL should have US$14.3B of copper and US$2.47B of gold, which brings to a total of $16.8B. MGO should have US$11.6B of copper and $2.26B of Molydenum, that brings it to US$13.8B. Basically, the message is, MGO would be in the comparable league of OZL category of companies!

Now, current market capital of OZL is A$4.81B with 3.24B shares issued. However, MGO’s current market capital is only A$273.36M. OZL’s mkt cap is now 17 times greater than MGO. However, both companies have almost the same amount of resources.

The following are a few reasons on why you may want to buy Marengo Mining Ltd at its current level (i.e. $0.27-$0.30/share):

Comparison Category	OZ Minerals (OZL)	Marengo Mining Ltd (MGO)
Resource (Measured+Indicated+Inferred)	US$30B	US$26B
Market Capital	A$4790M (at $1.48/share)	A$274M (at $0.275/share)
# of issued shares (M)	3240	994

Risk is proportionate to returns: the higher the risk, the bigger the returns. But the higher the risks, the bigger the discount to the share price too. If there’s a huge discount to the share price due to inherent risks of the share, then, we ought to ask: What are the risks that MGO have?

A few of MGO’s risks can be outlined and summarized as follows:

1. Management Risk: Low – Les Emery used to be the managing director for Lynas Corporation. Lynas is doing very well now, all thanks to Emery, who helped guided Lynas to get the lease for the mines that they now own. Do you think he has the capability to repeat a success story with MGO? Quite likely...

2. Capital Funding Risk:
1. Risk of getting the money to fund the capital cost to build the plant is low with China NonFerrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (“NFC”) offering to provide at least 70% of the capital cost or help MGO connect with Chinese banks to lend their capital. If 70% of the funding is obtained via a Chinese bank debt, that means NFC has to fund it by equity issue of US$480M. With current share price, it needs to issue up to 1.8 billion shares – making it similar to OZL’s # of issued shares. But of course, the better option is to fund it all entirely with debt and pay it off. However, it is quite likely that NFC would try as much as possible to negotiate a higher % of equity stake in MGO.

3. Yandera Project Risks:
1. Risk of cost blow-out: Low, due to the arrangement of a lump sum EPC Project with NFC. In a lump-sum project environment, the real exposure is to claims lodged by the EPC Contractor against the company. However, with the partnering arrangement in place, this risk is minimized. The Chinese would not want to risk a backlash by Australian company when they are the ones needing the resource, and they wouldn't want to sink a company which they themselves have a huge stake in (when they participate in the equity offering and arrangement of bank debt). US$1.6B capital cost is needed to get the plant to 25M tonnes/year production.

2. Geological Risk: Low. PNG is a geologically active area (lots of earthquakes). However, this risk is low considering that there are so many major companies which are already investing into PNG on the same main island, e.g. ExxonMobil. If ExxonMobil (very conservative oil company) is comfortable with the risk, I think we should be quite comfortable with it too.

3. Environmental Risk: Medium. This is the only risk that could be a bigger challenge for the company. The possible ways for MGO to manage the mining tailings is to build a dam, use DSTP (Deep Sea Tailings Placement) similar to Ramu Cobalt-Nickel Mine and Lihir Projects, or to build a processing plant to treat the wastes. The PNG govt is quite likely not to have a huge appetite to build a dam to contain the mining waste as OK Tedi’s dam was damaged in an earthquake back in 1984, which was a factor contributing to OK Tedi dumping mining wastes straight into the river systems leading to a huge environmental disaster. Having a potential damage by earthquake of a dam, and end up releasing tonnes and tonnes of toxic wastes into the environment would be quite unacceptable. Possibly, the DSTP method may work for MGO.  

4. Product Sales Risk : Low. NFC has already offered to off-take a portion of the product from the Yandera project as part of the MOU signed with NFC. MGO has already secured a big customer!! And with the rising world demand for copper (China being a big driver of this demand), there shouldn't be any concerns on whether they could sell the product.

5. Political/Sovereign Risk: Low. MGO has very good political connections. It has the former PNG Mining Minister (Samuel Akoitai) and the former PNG PRIME MINISTER (Sir Rabbie Namaliu) within its board of directors!! These men would be able to help MGO in navigating to get the mining licenses/leases renewed and to assist in getting the environmental approvals required.

6. Construction Risk: Low. With NFC successfully constructing the nearby Ramu Cobalt-Nickel mine, NFC should have the capability to construct and deliver the project in PNG on time for a early 2014 start-up.

7. Resource Upgrade Likelihood: High. MGO still has $71M in cash as of 31 Dec 2010. This money is enough for it to continue its drilling program around the resource and prove more of the inferred resource into the indicated category. As drilling continues, the company shall keep on adding value to the company. When good news is released on any upgrade in the resource, this will drive the share price even higher.
8. Production Costs Risk: Low. See graph as per Note 2 below. The forecasted production cost is about $0.90/lb. This means that the copper price can drop even up to $2/lb (almost 50% drop from today's prices), and MGO can still keep the plant operating. The cost can be kept quite low due to lower wages of PNG nationals being hired. 

NPV Analysis:

A basic Yandera project NPV analysis based on available information shows us how much the share price should be. Based on a 10% discounting factor (i.e. 10% cost of capital), this will give it a current NPV of $2.67/share based on the following assumptions: 

1. 0.57% grade copper equivalent (including Mo)
2. Copper/Mo recovery factor: 0.8

3. 20 year mine life (with startup in 2014)

4. 25M tonnes of ore per year 

5. Net profit margin of 56% (as per OK Tedi most recent net profit margin)

6. 10% discounting factor

7. US$1.6B capital cost

8. AUD to US$ conversion ratio = 1:1  
9. Copper price: US$4.30/lb

Sensitivity analysis:

Even if the capital cost of that plant is US$2.5B (assuming another extra US$900M to deal with the mining tailings), the NPV for the project will lead us to $1.76/share. This is not taking into account that the company will find and prove more reserves with its continuous drilling program.


Even if copper price drops to US$2/lb (2008 GFC levels), the NPV for this project based on current resources level and 25MT/annum production is still $0.38/share (higher than current share price)!!

Share Price Risk Analysis:

§  MGO has recently issued 110M shares (fully subscribed) at a price of C$0.25/share (which is about A$0.255/share) to institutional investors. This helps set a floor price. Major institutional investors will generally not allow the share price to go below the price for which they’ve obtained the shares.

§  Share price has a huge potential to spike up as soon as Definitive Feasibility Study (DFS) is released (targeted for 1Q’11). It’s now getting to mid-March, so the DFS report is not far away (in the next 2 weeks). 

§  Strong institutional shareholders participating in recent offerings, implying low risk of share price falling any further than current levels:

Biggest shareholder: Sentient - 22.2%

Sentient has proven themselves to be very astute stock-picker of stocks that have potential to be a takeover target. MGO can be one soon! Refer to the following article on the track record of Sentient Equity fund: http://www.theglobeandmail.com/globe-investor/investment-ideas/private-equity-fund-shines-in-spotting-takeover-deals/article1918226/

2^nd biggest shareholder: Quantum Partners – 18.9%

Quantum Partners is a fund owned by George Soros. George Soros is a man who knows how to profit from financial crises. He still managed to earn $1.1 billion while the rest of the investment companies were reeling from the recent 2007/08 GFC. 

3^rd biggest shareholder: OMERS (Ontario Municipal Employees Retirement System) – 6.1%.

Supposedly, a retirement fund usually should be quite risk-averse. This gives us another comfort factor that the risk of investing in this company is low.

Conclusion:

From market capitalization comparison, MGO will soon become another OZL with market cap in the order of $3B. This would mean that MGO will have to be $3/share to be a $3B market cap company with current # of shares issued. Assuming that 3B shares have been issued then, it has to be at least $1/share for it to be a $3B Market Cap company. 

From DCF analysis, MGO will also be $1.76-$2.67/share provided that all risks mentioned above are managed properly.

From PE Ratio analysis, at 25M tonnes/year production, MGO will generate a net profit in the order of US$600M per year!  Assuming a 3 billion issued shares (similar to OZL now), and at the price of $2.00/share for MGO, the PE ratio will just be 10. When it ramps up to 50M tonnes/year production, the PE ratio will just be 5! 

Hence, MGO share price will be able to go up to at least to $1.00/share in 1.5-2 years time (very conservative estimate). This is not taking into account all the upsides that MGO has by its continuous drilling program in the 1900km2 tenement that it has in PNG. 

Do you want to be a part of the exciting story of Yandera Project in PNG? It's your choice...

Note: Marengo is Napolean’s favourite horse who had faithfully served him for 35 years. MGO is hoping to faithfully serve all who’re willing to buy a stake into it. 


Note 2: Additional Chart from http://www.asx.com.au/asxpdf/20100901/pdf/31s8g5wswdv31j.pdf 
Marengo is forecasted to be one of the lowest cost producers of copper (on a per lb basis), almost next to OZ Minerals. 

Disclosure: The analyst is a long-term shareholder of MGO. This share analysis does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided here is solely your responsibility. You should consult your investment adviser before making any investment decisions.

Minemakers Limited (ASX) – Worth investing???? Not sure.....

Two main projects which they claim as world-class deposit.

Current Mkt Cap = $123M with 227M shares issued. 

1. Namibia Project - 49% ownership by MAK (indirect & direct ownership). Namibia is in Africa and this project is an offshore project, which basically means that they're mining from the seabed. MAK plans to use dredging boats to get the job done. They claim to have Indicated resource of 73.9M tonnes @ 20.57% P2O5 (worth US$2.28B based on price of US$150/tonne) and Inferred Category of 1507M tonnes at 18.7% (worth US$42.2B). 

2. Wonarah Project - 100% ownership.

So far, it is hard to find a comparable company to evaluate how much MAK's price would go up to.

Phosphate producers in Australia are listed as follows( http://www.australian-phosphate.com/phosphate-stocks.html  ) However, there are not any companies in ASX that's actually producing phosphate rock only. Incitec Pivot is the only company that's producing phosphate, but they are an integrated producer (upstream & downstream), i.e. they mine the rock phosphate at Phosphate Hill (producing 2M tonnes/year) and then use sulphuric acid from nearby manufacturing facilities to manufacture fertiliser directly and sell fertilisers directly into the market. Incitec Pivot's mkt cap is A$7.52B with 1.63B share issued. Phosphate Hill has 89.9MTonnes (@24.3% P2O5) back in 2003. They mine 2M tonnes/year, so that means their proved and probable reserves now is probably 74M tonnes now.  

Seabed rock phosphate mining is not a common practice, in fact, there's no company that can be found to have done it. Someone however, has thought of doing it in New Zealand:

http://rockphosphate.co.nz/news/archives/2010/05/25/chatham-seabed-phosphate-worth-67-billion/

http://www.stuff.co.nz/business/industries/4508172/Mining-the-depths-more-than-pie-in-the-sky

This seems to be a new way of applying existing technology of dredging. Hence, the Namibia project seems to be still quite innovative and fairly new method of producing phosphate rocks. The environmental application process could be a torturous path as this process involves the release of water back into the sea as the boat dredges the seabed. (If you've watched the dredging methodology shared by the company in a recent presentation, you'll be able to see how much water is pumped straight into the sea as the dredging continues). 

MAK seems to have a lot of appetite for new technology. They've bought a stake of 6.67% in FDC, which is a USA Florida-based company that's developing a dry kiln technology and filed for a patent. This technology will allow conversion of rock phosphate to phosphoric acid without much use of sulfuric acid. MAK is keen to get further downstream into processing their rock phosphate into fertilizer just as what Incitec Pivot is doing now. However, due to the unavailability of a sulfuric acid plant nearby to provide feedstock to MAK plant, they've got to import sulfuric acid or to manufacture it themselves by importing sulfur. If FDC's patent works, then MAK will be the 1st plant to be built in this world that's using the newly patented fertilizer production process. 

If MAK just sell their ore as DSO (Direct Shipping Ore), then, they'll need to build a 260km railway to link to the Adelaide-Darwin railway. This option is not one that's adopted by the company now as it's not that economical. 


Until now, it's not easily verified how much Indicated and how much Inferred resource MAK actually has. They're not releasing reports on "upgrade on resource" kind of statements. There's a statement in the Dec 2010 quarterly activities that say: "Only about 15% has been drilled sufficient densely as yet to enable JORC & NI43-101 resource estimations, but those sub-areas contain an estimated 620Mt @ 18%P2O5 using a 10% cut-off, totalling the Indicated (289Mt @18.5%) and the Inferred categories (331Mt @17% P2O5)." Based on this, it seems that they don't have any JORC-compliant categorization of their resource yet.

Also, MAK seems quite scattered in their focus-area on minerals. They're trying to mine for tin, tungsten & fluorospar in Tasmania through TNT Mines Ltd, gold in Tasmania through BCD, and another project in Namibia which they haven't done any work on it so far. The company ought to focus on a FLAGSHIP project, and it's possible that Namibia is further down the track than the Wonarah Project. This is because the Wonarah Project may need more time to prove the usability of the new dry kiln technology.

Nevertheless, phosphate rocks are something that is really worth looking at. The world is running low on fertilizers soon as population grows and need more food. If you can find another company mining for rock phosphate, please let us know. J

By: Peter Koay
Equity Analyst 

Books I am Reading regarding mining investment

Hey Guys/Girls:
Sidetrack a bit here......what I wanted to write of is something that people keep on asking me time and time again.
Questions like
'Where do you get your info?'
'Why do you know so much about this company?'
'How do you know how to calculate the share value?'
'Where do we start if we know nothing about mining or investing?' 
etc etc etc....you get the picture :)
I will give you some books that I think are good guidelines....but before that, let me just assert my point that Knowledge is Power.
I have seen many people get burnt in share trading/investing(probably i should call gambling hehe) in the past....and when you ask them, why they bought a certain share...their answer will be 'Because I heard rumours that.....' or 'My uncle/friend/brother told me that it is a good buy' etc.  When you ask them whether they know who is the CEO, what is the history of the company etc, they don't even have a clue.
My point is - even SOPHISTICATED investors lose money sometimes in the market, so what hope do you have when you don't know anything about the company you are putting your money in?!
The more you know, the more confident you get and the less you are affected by daily ups and downs of the share market (unless you are a day trader, which i am not)
Basic questions you should know about companies are:
1. What does the company mine?  (i know, it is a very simple question, but ask some people that have tens of thousands in the market, and they might not know!)
2. What country does the company mine in?  What kind of political history does that country have, for example ghana, papua new guinea, canada etc?  Is the government stable?
3. What is the demand of the commodity that they are mining?
4. Which stage of mining are they in?  Are they just exploring?  Or they have already started to prove reserves?  Are they at the BFS (Bankable Feasibility Study) yet?  Have they start to produce the minerals yet?  This will determine which stage the company is in and to allow us to compare with other companies in the same stage.
5. Who else is mining in the same area?  What is their market capitalisation as compared to the company that you want to invest in?
6.  Who is the management?  Do they have proven experience?
7.  What is the history of the company? When did it start and what did they acheive so far?
8.  Is the area that they mine fertile?  Have there been any proven reserves surrounding that area?

Most of these questions you will be able to get the answer by simple googling it, or going to wikipedia or the company website, or asx announcements....there is plenty of info online.....just whether we want to find it :)

This will give you a good indication of what industry and background this company is operating in.

Few books that I am reading is
http://www.amazon.com/Junior-Mining-Investor-Profitably-Exploration/dp/0979533503/ref=sr_1_1?ie=UTF8&s=books&qid=1298455225&sr=8-1
http://www.amazon.com/Investing-Resources-Profit-Outsized-Potential/dp/0470613262/ref=pd_sim_b_8
http://www.amazon.com/Mining-Valuation-Handbook-Investors-Management/dp/0731409833/ref=pd_bxgy_b_img_b

So far, the books are proving to be a gem in helping me to understand the industry better, as i am not a geologist or miner etc......

Have a good day!

Strike Gold With Junior Mining - Good introduction to Mining

Strike Gold With Junior Mining

The value of gold, silver, platinum and other precious metals has soared since 2002. Prices of these metals remain on the rise, driven by high demand and limited global mine supply. Junior exploration companies are poised to benefit most, but do you know how to choose the right one?

Read on to learn about the niche junior companies occupy and the important things you need to look for to ensure you aren't investing in the next Bre-X. (To learn more about the Bre-X debacle and other investment nightmares, check out The Biggest Stock Scams Of All Time and The Ghouls And Monsters On Wall Street.)
Junior Companies Play a Senior Role
A junior mining company is an exploration company that looks for new deposits of gold, silver, uranium or other precious minerals. These companies target properties that are believed to have significant potential for finding large mineral deposits. Junior exploration companies are a major source of future mine supply. They find promising properties, prove the resources, stake the raw material and bring mines into production. With highly trained geologists, geophysicists and engineers on staff, it is the junior mining company that typically is best positioned to determine whether a property is economically viable. Juniors are critical players in the early stages, bridging the long lag time between when a new deposit is found and when it is brought into production.
Fields Of Green And Brown
There are two types of exploration: green field and brown field. Green field exploration refers to uncharted territory, where minerals are not already known to exist. Brown field exploration refers to areas where deposits were previously discovered. Not surprisingly, green field exploration is riskier and more expensive than brown field, but the potential payoff is much higher, too. (This exploration is similar to green field and brown field investments, which deal with companies choosing to build new production facilities or lease/purchase old ones.)Once a site has been selected, junior exploration companies then map the geological characteristics of the area in great detail. Geologists will use both on-the-ground analysis and remote sensing devices from the air to evaluate the physical properties of prospective ore bodies. Target areas are then chosen for more in-depth research, including ground-based seismic surveys and gathering samples to get a clearer picture of where to start digging.
Properties and Projects
The first place for investors to begin their research is to examine the junior's portfolio of properties and projects. It is important to understand the nature of each property, and to ensure the company has just enough - but not too many - projects in the pipeline. While it is easy to find reams of technical details and photos on a company's prospective reserves, translating all that geological mumbo-jumbo is tough for the novice investor. Here are a few things to focus on:

• Location, location, location: Companies with projects or properties that are near currently operating mines - or mines that were once in production - are usually a safer bet than those with pure greenfield targets where no known deposits have ever been discovered. The added advantage of properties near known mineralization is that there is likely to be existing infrastructure, such as roads, water and electricity. This makes it easier and cheaper for a company to bring mines into production. Weather is also a factor. For example, the northern regions of Canada can suffer from a short exploration season due to severe winters, while in southern countries, such as Mexico, drilling can take place year round. 
   
• Management, management, management: Most junior companies rely on very small management teams, yet the quality of the senior staff is arguably the single most important success factor. When evaluating management risk, ask yourself some important questions: Does the team include geological engineers with extensive experience in precious minerals? Has the team worked together in the past, and do they have a track record of finding the gems they seek? Can the CEO or President negotiate deals and raise capital? Exploration is a very chancy and capital-intensive business. The right management team makes a world of difference when it comes to gaining the confidence of investors in order to raise the funds and buy the time necessary to bring mines into production. (For more insight, see Evaluating A Company's Management and Putting Management Under The Microscope.)
  
  
  • Governmental and Environmental Regime: Not all countries or states are mining-friendly. Political pressures can cause governments to change their policies overnight, from one of openness to one with heavy restrictions and penalties. This is known as political risk. Junior companies that boast rich mineral reserves in a mining-friendly location with low governmental interference are good bets. Organizations such as the Fraser Institute rank the "mining attractiveness" of countries all over the world, and are a good information source for investors. (For more help measuring the risks versus the rewards, read What Is An Emerging Market Economy.)
  • Favorable Commodity Price and Supply/Demand Conditions: The outlook for share prices of junior mining companies can be volatile because these prices are closely related to the supply/demand and price characteristics of minerals. The key drivers of precious metal prices vary for each type. Gold, for instance, is both a commodity and an investment and its price is strongly affected by macroeconomic expectations, inflation, the strength (or weakness) of the U.S. dollar, and holdings of physical gold by consumers and central banks. For silver, platinum, uranium and other metals, different factors are important. Investors can turn to resources such as the World Gold Council, Gold Field Mineral Services, The Silver Institute and the World Nuclear Association to gain a better understanding.

ConclusionJunior mining companies carry more risk than senior mining companies because they explore for new mine deposits. At the same time, their shares are priced more attractively and offer significantly more upside. Investors can profit by selecting those juniors that appear most likely to discover and exploit first-rate reserves in the ground.Remember to look for experienced geologists and engineers, promising properties with historical mineral findings, favorable regulatory and governmental environments, constructive precious metals pricing and supply/demand conditions and strong management teams.

FNT - flying!!!!!!

:)
closed at 9.9 cents today!!!!!! more than 40% increase today!
will update later when i got a bit of time, very excited to see the volume and trades go through - interestingly, it takes some hours for the ASX news today to hit the share price - unlike more well known shares like BHP etc.....

NOBLE minerals – Another GHANA GOLD producer in 2011??? (NMG)

NOBLE minerals – Another GHANA GOLD producer soon???? (NMG)

http://www.nobleminres.com.au/

Summary

No of shares – 303m

Share price – $0.45

Market cap – $136m

Main Commodity – Gold

Country - Ghana

Having invested in PRU since it was $1.20 last year, I have done quite some research about Gold, especially Gold companies in Ghana. 

As of yesterday, PRU went up to $3.50, so has sort of risen a lot.....I don’t foresee it going up to $7.00 or more in a year time.....therefore.....time to find another PRU-like junior explorer......

In the process of finding that, we went through Adamus (ADU), Castle (CDT), AZM (Azumah) etc......and some of them actually have increased a bit as well.

However, stumbled across NMG (Noble Minerals) one day and really like this share as well.

Bought it on 30^th September for average price of $0.342.

Some of the things that i like about this share is:

1.       150000 oz p.a production starting from 2011.

2.       Good geographical proximity to other big mines like chirano, ahafo etc.... (you guys can google Ghana Gold belt to find out the maps).  This means that it is very likely to find gold in that belt.

3.      

a.       Measured, Indicated and Inferred JORC compliant resource of 32.98 million tonnes at 1.87 g/t Au for 1,980,000 ounces

b.      Proved and Probable JORC compliant Open Cut Ore Reserve estimate of 8.4 million tonnes 2.24g/t

4.       Aggressive drilling campaign that is funded recently by share placements etc........means a resource upgrade is coming soon which will further increase the share price, and also help the company to prepare feasibility studies to advance the mine further.

5.       Bibiani – the gold mine is actually not a new mine, it has been mined in the past already by different companies, so it has confirmed gold deposits there already, plus infrastructure is pretty much fixed.

6.       Gold price is all time high......and will continue to be as long as USD is being devalued by all the money printing that they are and will be doing in the future.
7.       If you look at some of the trades that went through recently, they are pretty large trades which indicate to me that some big timers are in the game - yesterday there was one trade for 1.2m shares in ONE TRADE - that's huge....and a lot of trades that are for 500,000 shares in one go......make your own conclusions from there :)

Happy investing!

Irene

Portfolio Tracking

This is just the start of me tracking the performance of shares that i have currently. As you can see, I really like mining stocks. This is because it is the only sector where rewards await the faithful investor.....stocks can jump 100% or 200% or even more when you do your research and due diligence. Other sectors are easier to research, but the returns won't reach 100%

Venture Minerals – Another Undiscovered Gem? (VMS.AU)

Venture Minerals – Another Undiscovered Gem? (VMS.AX)
This outshines a lot of other minerals company on many reasons:
1.Safe Country – Australia has a low geopolitical risk as compared to other countries.
2.It is in rare minerals which our modern world require for all our modern gadgets. Nowadays it is widely used in telecommunications gadgets like phones , TV, car electronics, basically for all electronic parts that need soldering – TIN is needed.
3.Very few new tin mines found in this world now
4.Stockpiles of tin are running down quickly.....
5.World production of tin keeps on dropping since the peak year in 2005.......
6.As China and India wake up more or develop more, the demand of tin will increase
7.VMS has very very good resources now and only 10% of its mine in Tasmania is surveyed. Means there is still 90% more to explore. Currently its deposit is the 5th biggest exploration site of tin mines in the WORLD!!!! And as time goes by, definitely it will find more tin in its remaining 90% of its mining land.
8.It has not just one but two mineral discovered in its mining tenements. Tin and Tungsten, possibly silver!

Therefore, all this conditions point very favourably for a share price to revalue.
Have a look at some of the broker reports and news for VMS. Let me know what you guys think. :)
http://www.ventureminerals.com.au/investor_broker.html
http://www.ventureminerals.com.au/investor_news.html

VMS – Victory Marching Shares :) :) :)
Happy Investing......