No mystery. Van Eck been buying into other Oz goldies.
Sharing the love and averaging down with SLR imho...
Ten Bagger, Friday 21st March 2014 Instos still soaking up the gold stocks The growing argument that last year’s slump in the gold price was merely a pull-back within an ongoing bull run for the precious metal seems to be shared by some of the more closely-followed institutional investors.
Those with the desire to delve into the daily smattering of substantial shareholder notices would have detected some telling acquisitions by the funds with a knack of getting it right.
Among those is Blackrock, arguably the most closely watched institution in the resources sector. The Evy Hambro-led fund revealed recently that it had more than doubled its holding in WA gold miner Northern Star Resources (ASX: NST), taking its stake to 14.2 per cent.
Paradice Investment Management, led by the well-followed David Paradice, announced this week that it had snared another bundle of shares in African gold miner Perseus Mining (ASX: PRU), lifting its stake from 6.5 per cent to 8.2 per cent. This is up from 5.75 per cent at the start of the year.
Paradice has also been wading into WA gold miner Saracen (ASX: SAR), boosting its holding from 7.4 per cent to 8.7 per cent. US investment giant Van Eck has been soaking up Saracen shares too, lifting its stake to 9.4 per cent from 8.1 per cent at the start of this year.
Van Eck has also been stuffing away more stock in Brazilian gold miner Beadell Resources (ASX: BDR), increasing its holding from 7.9 to 8.9 per cent. It started the year at 6.9 per cent. And it has been adding to its position in Evolution Mining (ASX: EVN), lifting its holding to 8.3 per cent from 7.1 per cent, and at St Barbara (ASX: SBM), where its holding has risen from 5.6 per cent to 7.7 per cent.
Van Eck’s shopping spree in ASX-listed gold stocks also extended to another Brazilian miner Troy Resources (ASX: TRY), where it has increased its stake to 9.2 per cent from 7.1 per cent in January, and Resolute Mining (ASX: RSG), where it has emerged as a substantial shareholder with a 6 per cent interest.
And to show that it is willing to share the love with those who perhaps need it most, Van Eck has increased its holding in the embattled Silver Lake Resources (ASX: SLR) from 6.5 per cent in January to 8.8 per cent in February.
Most importantly for Silver Lake, it has not sold its stock.
It is perhaps worth noting that a slice of Van Eck’s purchases fall into the “in-kind” category. This relates to the complicated world of Exchange Traded Funds (ETFs) and means that the stock has not been bought on-market in the conventional way.
SLR Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
