There's an abundance of positive media coverage about PDI...

There's an abundance of positive media coverage about PDI flooding the internet. The latest extract from St@ckhead 24/3


Stephen Gorenstein: Gold still shines for this high performing resources stock picker

A veteran analyst, Stephen Gorenstein’s deep mining experience has underpinned his work at the helm of the Melbourne-based Ari Fund.

Now, he’s sharing his expertise with * readers to shine a light on where value can be found in ASX resources.

Gold’s run past US$3000/oz will no doubt raise fears the trade has run past investors and moved into overbought territory.

But investors who have long backed the yellow metal remain confident in its fundamentals, saying the generalist money is not yet piling into gold equities in the manner you might expect of a bull market.

“The more I look at the market, the more gold looks attractive is the truth,” Ari Fund portfolio manager Stephen Gorenstein says.

“If I look at the market today, where do you want to invest? And it’s very hard to go past gold right now.

“There’s a lot of reasons for that and they won’t surprise you. It’s everyone’s favourite commodity now but there is good reason: you’ve got central bank buying continuing, you’ve got the safe haven status and you’ve got the interest rate cycle.

“There’s three really positive signals. Despite the fact that everyone is positive gold, which is usually a major concern, I still think the generalists are probably underweight, and if that’s the case there might be small blips in the gold price.

“But I think it continues to move up over the course of the year.”

........More golden boys

It’s not only Ramelius on Gorenstein’s conviction list.

He’s bullish about a number of West African gold explorers, notably Predictive Discovery (ASXDI), which has emerged a three-cornered M&A target between the predatory triumvirate of Lundin, Zijin and Perseus Mining (ASXRU).

PDI discovered the 5.4Moz Bankan deposit in Guinea, which could become one of Africa’s largest gold mines.

“It really is a high quality project and it obviously creates a potential bidding war over the next 12 months. We’re looking to see their exploitation permit come through in the next few months and we think that will be another catalyst for them, because that actually moves them into that development,” Gorenstein said....