I've decided this arvo to pack up and move out from IGR for a couple of months, and will be hoping that the 'copper stock' can perform better in the mean time. In which case I will be back into IGR as I still strongly believe in its mid to longer term prospects. IMHO, todays announcement will very likely see range bound trading and a lack of excitement, at least up until the AGM in November when the share placement wil be voted on.
I have been keeping a casual eye on AAM and like the fact that it has a healthy resource established, far fewer shares on issue, and a mine about to be commissioned into what should be an exciting time for gold.
I didn't like the deal that AAM management arranged for themselves at around 8 cents, and I am not overly confident about the quality of their resources. By the time that I cash out of the 'copper stock', I will be looking closely at IGR and AAM for a re-positioning into the gold sector. I strongly believe that gold will be the place to be going forward.
Successful junior producers in Oz will be where the multiples are to be made, and without the sovereign risk of say a Lihir Gold (LGL). LGL judging by the market reaction today will nevertheless perform strongly as it is a favourite with Institutions and has rid itself of its unwieldy hedges. New Guinea is just too volatile for mine, and if gold does go beserk, the native land holders could become a tad restless and start to re-examine their company agreements and at the same time start noticing how their living environment is being ruined. Give me a profitable gold mine near Kalgoorlie anyday!....LOL
Feel free to send me an email if you have anything to add or you have any queries as to why I have opted out for now.
