stock selection

Its not easy to make a stock selection at this time given the state of the US market, the volatility in commodity prices. I think its a good time to hold a swab of cash. But having said that, there is some compelling buying opportunities:
1. Matrix Metals (MRX.ASX): Matrix commissioned their 5500tpa copper mine in west Qld last June, and its already at nameplate capacity. There are plans to expand output to 9000tpa, and they have upside from further copper and uranium exploration.
2. Austindo Resources (ARX.ASX): This company is commissioning a gold mine near Jakarta, Indonesia in the next 6mths. The mine has struggled to date because it was not engineered correctly, but with a new consultant and contractor, things are back on track, and after the low-priced equity issue to recapitalise the mine, and the promise of higher gold prices longer term, this stock has some upside. The company doesn't have the resource security that I would like to see, so go easy.
3. RED 5 Ltd (RED.ASX): Red 5 is developing a gold mine in Mindanao, Philippines. The Open cut development goes underground from year 3 unless further OC gold resources can be found. There is a great deal of appeal to the UG as broad zones of high grade gold, and zinc credits have been found. The project lies along a promising mineralised structural trend, so there is upside from further regional exploration, which is being led by Anglogold. The Net Present Value of the gold project is around $90mil, so there is alot of upside in this company.

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