Portfolio Tracking (2)

Since the last time I posted the portfolio tracking, I thought i’ll update this blog again with where I have been investing.

NMG I sold because of uncertainties in some creditor related stuff – I decided that having a peaceful rest at night is more important and realised it for a 42% return, not too bad but i was hoping to hold it for longer....oh well, the lesson i learnt in investing is that we have to adapt to new news and always do your research....be ready to change when the situation change, i.e. political situation, economic situation, financial situation etc.

HGO i also sold as it was hovering around 31 cents, didn’t have the patience to wait – as things i thought were progressing quite slowly for them.......this netted me a 20% gain.

With the proceeds i have bought more VMS and FNT......therefore you will realise that my cost price for FNT has increased whereas VMS has decreased as VMS’s price was depressed.....mainly i reckon due to the share placement

By Stock	Current Price	Cost Price	Profit	Date First Invested
PRU	$3.11	$2.12	46.91%	Jun-10
CFE	$0.50	$0.40	25.48%	Oct-10
FNT	$0.15	$0.09	72.90%	Oct-10
VMS	$0.51	$0.60	-15.33%	Oct-10

Ghana - Introduction to the 2nd largest gold producing country in Africa

Mines that are in Ghana: (http://www.mbendi.com/indy/ming/gold/af/gh/p0005.htm)

Ghana’s largest mine is Tarkwa, owned by Gold Fields Ltd. The Tarkwa Gold Mine is located in south-western Ghana, about 300 kilometers west of Accra. The project consists of six open pits, two heap leach facilities, and a CIL plant. Tarkwa has a Mineral Resource of 15.3 million gold ounces and a Mineral Reserve of 9.9 million ounces. During financial 2010 Tarkwa produced 720,700 ounces of gold. For the 12 months to end-June 2011 the outlook for Tarkwa is to produce between 720,000 and 760,000 ounces of gold. Newmont Mining’s Ahafo mine produced 531,470 ounces of gold in 2009, up from 524,000 a year earlier.

Gold Fields also owns the Damang mine, located in south-western Ghana, about 300 kilometers west of Accra. The Damang Gold Mine has a Mineral Resource of 4.7 million gold ounces and a Mineral Reserve of 2.1 million ounces.

AngloGold Ashanti’s Obuasi operation produced 383,000 ounces a year. AngloGold Ashanti expects its Obuasi mine to produce around 400,000 ounces of gold per year by 2012.

AngloGold also owns the Iduapriem mine, which produces an average 190,000 ounces of gold per year.

Bibiani gold mine, owned by Noble Mineral Resources, is located in western Ghana, 250 kilometres north-west of Accra. The open-pit mine, which was commissioned in 1998, is in the Sefwi-Bibiani belt, and contains more than 17 million ounces of gold. The Sefwi-Bibiani belt is the second-most significant gold- bearing belt in Ghana after the Ashanti Belt to the east. Noble Resources plans a $9m drilling programme over the next three years.

Golden Star Resources, who has two operating mines in Ghana, poured its two-millionth ounce of gold from its Bogoso/Pretea and Wassa mines in 2009.

The Bogoso/Pretea project, in which Golden Star has a 90% interest (Ghana government owns the remaining 10%), consists of approximately 85km mining and exploration concessions along the Ashanti rrend in south-west Ghana. Bogoso/Presteas’s forecast for 2010 is production of 200,000 ounces.

The Wassa gold mine (also 90% owned by Golden Star), is located in the southwestern region of Ghana approximately 35 km east of Bogoso/Prestea. In 2009, mining operations at Hwini-Butre commenced and provide even higher grade ore to the Wassa mill.

Keegan Resources has two premier gold assets in Ghana. Keegan's flagship property is the Esaase gold deposit. Updated resource calculations indicate a 2.025 million ounce indicated and 1.451 million ounce inferred resource averaging 1.5 g/t and 1.6 g/t Au respectively. Development studies are currently underway that will enable the project to be brought quickly to production stage. Keegan is also exploring a second project, the Asumura gold property, is located along one of Ghana's largest and most productive gold structures.

Geology of Ghana

(http://www.mbendi.com/indy/ming/gold/af/gh/p0005.htm)

a few companies that mine in ghana in the asx

NMG - Noble Minerals Group

ADU - Adamus 

PRU - Perseus Mining

AZM - Azumah Mining

CDT - Castle Minerals

PMI Gold - Going to be listed soon in ASX.

NMG - New player Bank of America

Just a quick note - Bank of America increased their stake in NMG.  A bit surprising to me that they are even interested in a junior mining company. 
They have lodged a statement that they owned 20.6m shares (5.93%) on 23 november, and now they own 24.4m (7.03%) on 30 November.
Pretty aggressive buying according to my humble opinion :)
I think they won't buy into a junior mining unless they are pretty confident of the shares increasing in value - which is good news for me :)

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