For the few commodity believers out there, below are a few stocks you may find of interest.
All are well managed, have tight share structures and have directors who are willing to put their money where there mouth is.
All these stocks also can give great leverage should a commodity boom erupt.
Please do your own research..
Herald Resources (HER) 55c
•Listed on the ASX in 1948, and have only 49m shares on issue. •Have developed a number of gold projects and paid dividends to shareholders over six years (continuous gold producer for 13 years). •About to resume gold production at Coolgardie and have a resource base >900,000oz. HER have locked in 60,000oz at $606A as part of financing requirements. •Discovered the Dairi zinc-lead-silver deposit in Indonesia with 10mt at 15.93% zinc (one of the highest grading undeveloped zinc deposits on earth), and are aiming to produce from 2005. •Exploration potential in the Lachlan Fold Belt, Montague Projects in JV with Gateway (GML). •Management own 28% of the stock, and have a policy of not diluting shareholders where possible. •Cash position of around $6m, and only capped at $25m. Diggers and dealers presentation at http://www.herald.net.au/SlideShow2/index.html
Exco Resources (EXS) 9c
•Junior explorer focused on project generation for majors (similar model to PlatSearch). •Featured in this months resource stocks magazine which illustrates the exploration potential at Manna and the Mt Isa region. •Looking to commence infill drilling in QLD with the view to producing copper-gold within close proximity to Ernest Henry (strategic location and could appeal on a corporate level) •Just over 50m shares on issue and recently raised funds at 12c through Taylor Collison (same broker that put together the new MNR). •Recent sampling at Manna indicated some pan samples >500 g/t. Manna’s project location (South Sumatra) may have an impact however COW’s have worked well in Indonesia and the country’s stock market is one of the best performing this year. •Drilling in QLD and Indonesia due shortly, and the stock offers excellent leverage to success based on a tight structure and the potential for exceptional grades.
Austminex (ATX) 8c
•Planning to shortly drill Boorawa with historical silver production at 270 g/t from old workings. Could be timely in relation to PM activity. •Major shareholder is Lion Selection Group and the Chairman Peter Vanderspuy (ex founding Director Delta Gold and Zimplats) has increased his position on market to just under 5m shares. •59m shares on issue, with the company having an option over the Benambra zinc-copper-gold-silver resource in Victoria. •Managing Director Tom Eadie was the exploration manager for Pasminco and was involved with Aberfoyle prior to WMT takeover. •Well managed, and tightly held with an exciting drilling program due to commence shortly.
INDEPENDENCE GOLD (IGO) 34C
•Purchased the Victor Long nickel mine from WMC for $15m, with production expected in October. •Expect to earn $60m over four years, with the potential to increase the resource base through exploration. •Gained control of the Southstar database from WMC and possess and ideal tool for project generation and spin off companies. JV with Ranger. •Management have a history of successful exploration including Chalice. •Have an excellent ground position in the Musgrave region, and within proximity to major gold producing areas. The Chesterfield JV with SBM is returning encouraging results where SBM would treat the ore in the event of the project moving into production. •Cash flow from nickel to assist in funding large scale drilling programs and reducing the impact of dilution. •Capital raising to large and institutional investors recently announced at 34c per share. •JV’s signed with Anglo and Sipa. •One of the most successful new floats of 2002, with the option package returning over 100% to investors at the float. •Stock maintains strong institutional support, and the Victor Long acquisition could provide the platform for future growth.
