As Santa departs this evening for the North Pole this evening my thoughts turn to repaying the credit card debt that was necessarily incurred to keep those near and far relatives of mine in good cheer over Xmas. So money raises its ugly head here on Xmas morn – though I have been collecting information for this post over the last week or so.
The significant mineral supply increases that are starting to occur in Australia should take some of the sharp edge of the commodities price boom. But still that part of the stock market that looks likely to do best over the next 12 months is the mineral sector. At the speculative end of this market segment Helena Keers (AFR, subscription only, December 16-17) listed 15 mining hopefuls that I will be keeping an eye on in 2007. All are speculative and most have increased dramatically in price already – when the ‘pass the parcel’ game ends you would want to be clear that you are holding onto something at the solid end of the spectrum – better still of course you would like to be holding cash but that is a pipedream isn’t it. Did you hear that little bell that rang yesterday warning you of a turn in sentiment that pre-announced the end of the market boom?
With these caveats these are the mining juniors Ms. Keers mentions the following:
Bannerman Resources, Capitalised at $108 million it grew in market capitalization 21-fold in 2006. Uranium - a Perth based ASX listed nickel exploration company that has acquired the majority rights to a major uranium exploration portfolio situated in the Southern African nation of Namibia and three prospecting licenses in Botswana. Price $1-63 at December 16.
Fox Resources. Capitalised at $206 million it grew 7-fold in 2006. Diversified - mining and exploration for copper, nickel and base metals. Price $1-85.
Albidon Capitalised at $250 million it grew 150 % in 2006. Diversified - Albidon is a nickel exploration and development company with a focus on East Africa . The Company has spent the past six years building a large portfolio of nickel sulphide projects ranging from development stage to grass roots exploration. Currently positioned to make the transition from explorer to miner. Price $1-67.
Felix Resources. Capitalised at $777 million and selling on a prospective PE of 17.9 it grew 112% in 2006. A Queensland-based coal producer, explorer and developer. Price $3-96.
Tamaya Resources. Capitalised at $202 million and selling on a prospective PE of 5.3 it grew 99% in 2006. Gold and copper with an interesting South American (Chile) prospect. Price 19.5 cents.
Arrow Energy. Capitalised at $528 million and selling on a prospective PE of 23.5 it grew by 74% in 2006. Energy. Interesting focus on coal seam gas. Price $1-25.
Incremental Petroleum. Capitalised at $88 million it grew by 43.2% in 2006. Oil and gas – based in Turkey and claimed to be a cheapie. Price $1-36.
Havilah Resources. Capitalised at $84 million it grew 28% in 2006. Highly diversified explorer. Price $1-14.
Petsec Energy. Capitalised at $343 million and selling on a prospective PE of 5 it grew 25% in 2005. Oil with focus on Gulf of Mexico. Price $2-33.
Roc Oil. Large geographically diversified producer and explorer for oil and gas. Capitalised at $914 million and selling on a prospective PE of 7.7 it grew 24% in 2006. Price $3-18.
Northwest Resources. Capitalised at $13 million it grew 19.2% in 2006. Gold. Picked by D J Carmichael analyst Paul Adams to have Australia’s richest gold mine – in the Pilbera - within 3 years. Price 33 cents.
Medusa. Capitalised at $73 million it has grown 16.9% in 2006. Gold – based in the Phillipines. Price 78 cents.
Kingsgate Consolidated. Capitalised at $362 million and selling on a prospective PE of 6 it grew 5% in 2006. Gold – based in Thailand. Price $4-09.
Agincourt Resources. Capitalised at $293 million and selling on a prospective PE of 42 it grew by 4% in 2006. Gold and other minerals. Price $1-35.
Amadeus Energy is capitalized at $181 million and fell in value by 12% in 2006. Oil amd gas – favoured recently by the Bulletin’s Speculator, David Hazlehurst. Price $1-00.
The following are speculative mining stocks that I have invested in:
Gindalbie Metals. Capitalised at around $500 million and more than doubled in price in 2006. Has a huge potential West Australian iron ore deposit. Price 67 cents.
Renison Consolidated. Capitalised low but has halved in price during 2006 due to two share issues of convertible notes. Mainly Gold. Price 15.5 cents.
I’ll update information in this post as it comes to hand. I’ll also post on other opportunities as I see them.