LSG hold about 15 investments with about 50:50 split between companies having assets in Australia & Overseas (Africa & Asia) and invest in Gold & Base metal companies. LSG is also a registered PDF (Pooled Development Fund) so that its share holders will enjoy tax free capital gains & dividends.
Due to rising gold price and base metals, many of LSG investment companies have performed well in recent time. Its reported profit is $32 m for last Financial Year @ 31 Jul 2005.
GGN (LSG’s holding is about 19%) has been taken over via scheme of arrangement with IAMGOLD corporation (IMG), a listed company in Toronto Stock Exchange. LSG will receive one IMG for 22 GGN. Effectively, GGN is at 46c for each GGN share as at 2 December 2005.
IRN (the second largest holding in LSG portfolio) has appreciated to the record high about 68c recently due to 15% increase in its contained metal (Copper & Gold) in Tampakan Project and due to JP Morgan increasing its holding in December (to 6.4% ) & in October 2005. Xstrata Copper may also exercise its option to 62.5% in September 2006 to fast tract the Pre-Feasibility study (PFS).
Can LSG bring some luck to LAF (the 3rd largest holding and 3rd capitalisation in LSG portfolio as @ 6 Jan 2006.LSG has about 21% of LAF as at 6 Jan, 2005)?
LAF has organised with IRN for Australian Investment Analysts and Media to have the site visits in 11 to 13 October 2005. Xstrata & many overseas mining houses will analyse many emerging gold & base metal producers in Philippines including LAF for possible M&A. Rapu Rapu resource increased for LAF due to Hixbar [with 1.3mt $1.7g/t Au and 15.4g/t Ag, as at October 2005, is most promising at this stage] and other such as Hondo, Buenavista [in early days yet] will also create interest for predators. Hopefully, there is no M&A at this low price and IMHO, LSG and AUS controlling about 30% will not be accepting the M&A unless the price is much above the current share price (14c). Time will tell.
Other smaller holdings of LSG portfolio such as SED, LVR, ARX, WEZ, AGM, EXS, DEG and VRE are also sharing the fortune of higher gold & base metal prices.
DYOR before buy, sell or hold in LAF & any shares mentioned here.
Cheers, BL
LAF Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
