time to sell

Not much has improved for this Papuan gold miner since May 04 (0.94), except its share price, which is up 90%. Recently the company said it had borrowed $US216m and ‘restructured’ its hedge commitments. We’re not certain of the precise details of that deal, but it matters not. It just goes to show what a fascinating track record this company has of sucking in capital and spitting out promises. Rio Tinto and Lihir are also unwinding the former’s management agreement and, as a wild guess, we’d say Rio probably also intends to unwind its 14% stake in the company. It makes sense for you to follow suit and SELL.