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

Investing and Gambling

This probably will be a post which there is not much analysis of stocks.....but just wanted to express something close to my heart – Investing and Gambling..
Stocks – A lot of people on the street when asked about stocks, will associate stocks with greed, Asian Financial Crisis, Global Financial Crisis, danger, speculation etc.
It is probably useful to go back to the original definition of stocks/shares......wikipedia gives a good summary in http://en.wikipedia.org/wiki/Stock

“The stock or capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value.”

As we can see, stock is just the capital paid into the business......through the passage of time, it has evolved in a properly regulated and controlled environment where people can trade in shares.....then the invention of such things as options, derivatives, CDO’s, and all the exotic financial instruments.
I had many conversations with friends about the topic of shares and investing through the past few years.....most of them will say that playing shares is like gambling. Again, it is helpful to look at the definition of gambling.
http://en.wikipedia.org/wiki/Gambling

Gambling is the wagering of money or something of material value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.

As we can see, one of the main characteristics of gambling is ‘uncertain outcome’. However, when you really think about it, isn’t buying insurance gambling as well? Let’s say if i buy life insurance this year, just in case i die or be involved in an accident, then my family will get a certain amount of money. So, in this case, I am paying the insurance premium to the insurance company (let’s say $300 p.a) to gamble against the possibility that i might die/be in an accident. So, is buying insurance gambling??? I know i’m muddying the waters here, but this is something that we should think about.......

Anyway, back to investing. For me personally, investing IS gambling if you have no idea about what your outcome is at all, meaning that you are CLUELESS about the outcome of your investment. It is a bit like roulette, where the possibility of the ball reaching a certain number is unknown. However, if you invest with knowledge, it is similar like buying a business. Say for example if you have $1m, and you want to invest in a Asian grocery shop in Melbourne. What will determine which shop will you buy? Obviously a normal person will do his due diligence and find out how much is the rental, how much profit they expect to earn, who is the customers etc etc etc. Therefore, once you do the research, you decide on the store to buy. Again, when you invest in the grocery shop, obviously you have no control on the actual outcome (100% certain), but you have confidence in the possibility of a good outcome. (probably 80% certain etc)
So, from the example above, we can apply that logic in investing as well.

Why am i posting this? Mainly to provoke people to think.....:) A lot of religions do ban gambling, and I have got my fair share of people telling me that investing in shares is what a christian should not do.....feel free to disagree with me :)

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%