sell recommendation, page-3

My precis is:

NEGATIVES:-
- poor production record
- high fixed cost base
- expansion plans face start up difficulties
- single mine & associated sovereign risks
- negative impact of FX movements, high oil price & maintainence costs
- dilutionary impact of recent $155m (US) capital raising

POSITIVES:-
- huge gold resource which gives LHG good leverage to the gold price

My conclusion: (not Huntleys): if you believe the gold price is going to rise significantly from current levels then LHG should also experience significant share price appreciation.

I abandoned LHG some time ago in favour of EMP (see current write up in Shares magazine ... I have not yet read it but believe it is positive for the stock) Both LHG and EMP should rise significantly when ... if ... the gold bull market really takes off.

So, I guess Huntley's "sell" recommendation needs to be taken with that proverbial grain of salt. It all depends on your willingness to take risks and your view on the medium / long term view of the POG.

Hope this helps.