Looks great, page-34

HCMIF

Welcome back to the goldfields. I do remember AAM. I rode it up and down to my entry and got out, lucky me! Many not so lucky. Now rebadged at SHK and owned by Chinese, share price under 1 cent. The whole thing was a pack of lies spun by its CEO. I hope GeigerCounter has survived this encounter with the Oz minerals sector - he refused to listen to me and others who told him to save what he could. I also remember you posting on that thread.

As for what is not suspect, you can look at EVN, NST, AQG, RRL, SBM, OGC, and SAR. EVN, NST and RRL are paying dividends. Most have run a fair bit from their lows and I favour Oz based goldies because of the advantage of a lower AUD and improving input costs. RRL could have another good run if they can prove up more higher grade ore to mix with their low grade ore for their 10 million tpa milling capacity in WA, with a consequent substantial increase in the level of production and lower costs, higher profits.

I would have included MLX in that list except for the fact that the CEO is finding ways to dilute shareholders because he wants to acquire non income generating assets. MLX has started paying dividends. Plus we do not know if they will be able to contain costs at their new Murchison project.

DRM is probably now fully priced at the current gold price - but things can change quickly depending on drill results. Good operators and explorers.

RMS and SLR both need to prove up more ore for the longer term - and seem to be safe enough for the next 6 months. They are for gamblers, because at present they have no capacity to pay a dividend and any cash surplus will be spent on exploration and mine development. SLR and I believe RMS are now profitable.

PRU is pretty safe financially, they need to get their next project up in the Ivory Coast. Has plenty of spare cash, but current mine is not low cost. Will run with a higher USD POG.

BDR, MML, RSG all have some challenges, which makes them cheap. If they can successfully overcome the challenges then they have a lot of upside IMO.

I do not follow NCM closely, it has a lot of debt and its operations often underperform, but if we get AUD POG 2000 then they will do very well.

EVR is safe at the current gold price despite its debt. I am unhappy with the deal they are doing, bringing in a shareholder who gets 30% of the company. Has a large production, some debt, will delist from ASX, and has moderate costs. TGZ is safe so long as they can access higher grade ore, which they can for the next 4 years, but I hate their management which promises but seldom delivers.

KCN faces high country risk and possible environmental issues in Thailand. I like this project and their Chile project. Oz mine is running out of ore this financial year. Management has done some bad deals and they have some debt.

TRY, RED, PGI I do not like. TRY and RED may be OK for trading.

I do not follow the explorers much these days. DCN and CDV look interesting.

Good luck and do your due diligence. The US gold price is not yet in an confirmed long term uptrend as far as I know, but I may be wrong.

There are other smaller producers out there, eg ABU, which I do not follow.

loki