JID I agree that high grading is becoming an increasing problem...

JID

I agree that high grading is becoming an increasing problem in the mining sector. I believe that EVR has not been doing that to its mines. I think they accessed the higher grade at Nzema in accordance with original plans, but what really saved this operation (especially in the March quarter) was their ability to purchase higher grade ore to blend with their lower grade ore. I do not know from whom they are buying the ore - perhaps small scale local miners.

One thing that bothers me is the lack of finance to undertake anything other than minimal exploration activity to extend Nzema and Youga in particular. I understand exploration has declined everywhere and will lead to higher gold prices at some stage.

Thanks for mentioning chuck's trading approach. I am familiar with what he does. I think I cured him from the SLR love bug so he moved onto MML but then decided that BSR was the next eldorado. It is possible that BSR and ABU will become big winners if they prove up a lot of gold. I know a bit about BSR because they bit me in the rear in 2010 when I exited long before they fell to below 1 cent. They used to make a lot of promises and always failed. Maybe things are different now, but I note the CEO is the same one who made the previous promises. There could be a good story there so long as their proposed high grading activities do not deplete the remaining gold into an unattractive grade. I also note that the deposit is (was?) in an inferred category which may prove illusory once they do more resource/reserve definition.

Chuck will get in and out of goldies with the benefit of his charting abilities. I have no TA skills so it is best that I stick with a method that I can use - FA. In which I intend to stick with proven gold producers, but be relatively lightly invested until I really see the POG moving consistently higher. I have no idea when that will happen - my hopes on rising Indian demand may be slow to come to fruition, and I can not see inflation being a help near term. Perhaps gold will take off in October nearer to the Diwali festival. On the other hand the ending of QE could roil world sharemarkets and all asset prices and that may prove negative for goldies and even POG.

Given your interest in goldies and level of investment I think you ought to look to invest in goldies listed overseas because we have very few worthwhile companies. In addition TGZ, AQG and EVR can become pretty illiquid on the ASX and trading the shares via the TSX would seem a better way - so long as the tax implications are OK for you.

Good luck.

loki