mention of riv in this article....Linq major shareholder.Stocks...

mention of riv in this article....Linq major shareholder.


Stocks guru unfazed by sell-off
Robin Bromby
March 01, 2007

BROKERS were deluged with "sell" orders - but Clive Donner was in the market buying yesterday.
The managing director of LinQ Resources Fund, and former resources project financier for N.M. Rothschild & Sons, was not unsettled by the big sell-off in resources stocks both big and small.
When you've seen figures that show China will pass the US in GDP by 2012, you know that the next five years will see huge demand from that country for commodities.

Put that together with historically low stockpiles of most commodities, and the conclusion is that prices will stay strong.

Not necessarily as strong as they have been, but strong.

The Shanghai market slide may have sent a shock through world markets but it did not alter the fundamentals.

"Nothing's changed," Mr Donner said.

The markets had seen these shocks from China before - the threat to set up an alternative to the London Metal Exchange, and the various warnings from Beijing that the Government was about to put the brakes on growth, were just two examples.

Yet prices keep powering, with nickel on Tuesday night going against the market panic and closing up on the spot market at $US44,500 a tonne.

"In my lifetime, I didn't think I'd ever see nickel at these prices," Mr Donner said.

He was not going to reveal which stocks LinQ was buying yesterday, but they were a mix of companies he has been watching and also topping up ones already in the portfolio.

LinQ grew out of the Golden Arrow funds that he ran at Rothschild. It buys into companies that are either in production or are going through their project feasibility work.

These include: Wedgetail Mining, now developing its Nullagine gold mine; Riversdale Mining, which produces coal in South Africa; nickel producer Independence Group; and emerging Pilbara producer Atlas Iron.

LinQ has ridden the resources boom, its shares rising from 79.5c a year ago to a high of $1.18 this month. Its recent half-year result saw profit jump 231 per cent.

And this golden era in resources would continue, at least for five years and possibly for 15, Mr Donner said.

Zinc, copper, nickel and lead were all seeing low stockpiles.

And Mr Donner believes gold is in for another run upwards.