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Saturday
Aug192006

TASEKO MINES LTD (TGB) UP 10% in 1 DAY

Buy this dip we said on 12 August 2006 and TGB is now up 12.7% in 5 days. The chart below shows our Buy and Sell actions.

TGBChart19Aug06

As you well know we are fans and holders of this stock for a long-term gain. However, in this holiday period we spotted a great opportunity for a short-term gain and made a small investment on Monday morning as we said we would in last Fridays article entitled TASEKO MINES LTD (TGB): Buy this Dip.

This move was a bit of a gamble in terms of investment and is not our usual investment style. Anyway we caught the bounce that we had predicted as TGB started to recover from its sell off.

As a bet it has worked out well and we have closed our position and taken a 12.5% win in 5 days. Why? Because that was the plan and we are sticking to it. Our major holding remains in position for the longer term and these “winnings” will remain on hand to be used when the next opportunity presents itself.

For those of you who are still in there, you now have a choice: cash up and go or hold on for a bigger pay day, only you can make that decision based on your particular outlook and circumstances. Good luck if you are intent on letting it run we think that you will do well but as we said our aim was to make a short term gain. Objective achieved.

Returning from our little deviation we will just refresh ourselves regarding Taseko.
This copper miner has a Market Capitalisation of $257 million and a P/E ration of 8.3. There are many miners out there trading at massive P/E ratios so this investment opportunity still looks good to us and we will continue to acquire as and when our cash situation permits.

For progress reporting purposes we will continue to report against our original recommendation, as we believe that this is the correct and fair thing to do.


19 August 2006
Thursday
Aug172006

Useful websites.

Useful websites.

We have listed some of the websites that we find very informative and strongly recommend that you visit them as part of your due diligence before investing your hard earned cash into the precious metals market.

This directory lists the websites covering:

1. Stock exchanges where gold and gold mining shares are traded.

2. Gold mining companies that interest us and may be of interest to you.

3. Useful reference points

4. Miscellaneous websites that we often visit.


Stock Exchanges:

The Toronto Stock Exchange WEB: www.tsx.com/
This exchange probably has the largest number of gold mining companies of any exchange.

The New York Stock Exchange WEB: www.nyse.com/
Commonly known as the big board, an exchange for the larger more established miners.

The NASDAQ WEB: www.nasdaq.com/
A number of mid stocks and smaller companies can be found here.

The American Stock Exchange WEB: www.amex.com/
A number of mid stocks and smaller companies can be found here.

The London Stock Exchange WEB: www.londonstockexchange.com/
Probably the biggest exchange for the trading of physical gold in the world.

The Aim Stock Exchange WEB www.londonstockexchange.com/en-gb/products/companyservices/ourmarkets/aim/
A London exchange used as an entry platform for new ventures similar to the Venture exchange in Toronto.

New York Mercantile Exchange Comex Division WEB: http://www.nymex.com
This is the world's largest physical commodity futures exchange and trading forum for energy and precious metals.

Shanghai Gold Exchange WEB: www.sge.sh/redirect.asp?locale=1033
A very busy Chinese exchange that is destined to grow.

Tokyo Commodity Exchange WEB: http://www.tocom.or.jp
The Tokyo Commodity Exchange for gold, options and derivatives.


Mining companies that have interesting websites:
We may or may not hold these stocks at any given time.


www.agnico-eagle.com/
This is one of our favourites and a permanent fixture in our portfolio.

www.cambior.com/
This is a smaller gold miner with a promising future.

www.kinross.com/
This is a well-managed gold mining company with a great future.

www.bema.com/
Bema Corporation has recently listed on the NYSE.

www.hecla-mining.com/
This company is in the main a silver producer with the added kicker of some gold production.

www.silverado.com/
This company is mining gold in Alaska and also has an interesting green fuel play.

www.usgold.com/
This is a relatively new mining company in which the legendary Rob McEwen has a major stake.

www.tasekomines.com/
This is not a gold play but a Copper play that we think is worth some consideration.

www.newmont.com/
This one is a real heavy weight if you like that sort of investment.

www.barrick.com/
This company has hedged a lot of its production so at the moment it does not fit into our investment criteria.

The Hunter Dickinson group WEB: www.hdgold.com/hdi/Home.asp
This group has a small stable of mining companies that usually do very well, worth a look.

Websites that contain useful information.

The World Gold Council WEB: www.gold.org/
A mine of information and one of the world’s authorities on gold.

Australian Gold Council WEB: http://www.australiangold.org.au
The Minerals Council of Australia is now carrying out the functions of the Australian Gold Council.

American Gold WEB: http://www.amergold.com
This organisation specialises in hard assets such as gold coins.

British Jewellers' Association WEB: http://www.bja.org.uk/
The British Jewellers’ Association is the national trade association responsible for the promotion and growth of UK jewellery

Chamber of Mines of South Africa WEB: http://www.bullion.org.za
This Association provides news and data for the South African Mining Industry.

e-bullion WEB: http://www.e-bullion.com
This organisation provides an electronic bullion service.


The Gold Anti Trust Action Group WEB: www.gata.org/
The Gold Anti-Trust Action Committee was formed to advocate and undertake litigation against illegal collusion to control the price and supply of gold

Gold Fields Mineral Services Ltd. WEB: http://www.gfms.co.uk
This is a precious metals research consultancy.

Gold-Eagle WEB: http://www.gold-eagle.com
Contains information and a forum.

Kitco Inc: WEB: http://www.kitco.com
This is probably the most visited precious metals website that there is. It also provides a platform for some of the industries most respected commentators.

The Privateer WEB: http://www.the-privateer.com/gold.html
The Privateer contains gold quotes, data and historical articles.

N M Rothschild & Sons WEB: http://www2.nmrothschild.com/home/
Rothschild provides advice and global client services

Royal Canadian Mint WEB: http://www.rcmint.ca
A place to go shopping when you can’t think of anything else to do.

TheBullionDesk.com WEB: http://www.thebulliondesk.com
Provides prices, charts and articles.

Tokyo Commodity Exchange WEB: http://www.tocom.or.jp
You can trade most commodities, futures and options here.

Utilise gold WEB: http://www.utilisegold.com
Not so much an investment website but useful to industrial engineers, designers, researchers and scientists who are interested in the technical properties of gold and its uses.

Miscellaneous Websites:

Etrade WEB: www.etrade.com/
This is an online banking and share-trading platform, useful for those who want to do their own thing.

Report on Business WEB: www.ROBtv.com/
This is one of the best business programmes on television. If you don’t live in Canada and can’t see it live then you can view all of their shows on the web in your own time. They do manage to interview the shakers and movers involved with the precious market.

Stanley Hunt TV interviews WEB: www.smartstox.com/
Stanley Hunt also provides televised interviews with the top executives in the mining industry. The show also features some of the newer exploration and development stocks that have a story to tell.

Silver portfolio WEB: www.silver-prices.net/
This is our sister website, it provides free research and publishes its own portfolio. They do have a newsletter, which is also free so why not sign up if silver is the metal of your choice.

Uranium Portfolio WEB: www.uranium-stocks.net/
This is another of our sister websites (we only have three) again it deals with uranium stocks and is free.


TV and radio WEB: www.bloomberg.com/
A popular website of constant rolling news items.


No doubt will update this list from time to time but we hope that you find it of interest in the meantime.


17 August 2006
Tuesday
Aug152006

Bema Gold Corp. (BGO)

Bema Gold Corp. (BGO)

This gold mining company, one of our favourite stocks is up 14.69% since we recommended it and has just reported that Revenue increased to $50.8 million from $22.4 million.

The improvement is broadly attributed as follows:

1. The restart of commercial production at the Refugio Mine.

2. Higher gold sales at the Julietta Mine.

3. A $188-an-ounce increase in the average realized gold price to $606.

A pleasing set of figures from one of our portfolio with much more expected to come over the next twelve months or so.

15 August 2006
Tuesday
Aug152006

Taseko Mines Ltd. (TGB): News Flash

This is great news; Taseko Mines Ltd. (TGB) has announced that its subsidiary Gibraltar Mines Ltd. has won a binding-arbitration dispute worth about $8.5 million.

The funds that had been withheld will now be paid plus interest and booked in the quarter that it is received.

The interesting point here is that as the funds were a subject of a dispute, the management took a very conservative approach and booked it as an expense. In our humble opinion this demonstrates just what good managers they are. A more unscrupulous company might have been tempted to count the chickens before they had hatched.

Effectively this means that the last set of figures, which showed a profit of around $4 million should have been around £12 million. If that had been the case then we doubt that the share price would have dropped as it did.

Never mind this presents us with a good buying opportunity. Take it.

As we write TGB is up 2.74% at $2.25.


Well-done Taseko.

15 August 2006
Saturday
Aug122006

Silverado Gold Mines Ltd: 12 August 2006

If you can afford to spend at the moment then invest more of your cash in Silverado Gold Mines Ltd.



During in this lull before the fall rally, it is a good time to be investing in your favourite mining stock. At a little over 6 cents this represents great value in our humble opinion.

From the chart we can see that a base has been formed and the longer this consolidation goes on, the better the breakout when it comes. All it needs now is an item of good news, a slight increase in volume and we will see this mining stock move too much higher ground.

SilveradoChart12Aug06

Have patients and don’t go too mad with it, but a year from now it will look like an absolute bargain.

You can find it on the NASDAQ OTC BB

12 August 2006
Saturday
Aug122006

Taseko Mines Limited (TGB): Buy This DIP

TGB1

Taseko Mines Limited (TGB) 3rd-quarter earnings fall, the faint hearted sell, presenting us with a great buying opportunity.


Vancouver based mining company Taseko Mines Limited (part of the Hunter Dickinson family) reported earnings of C$4.1 million or 3 Canadian cents a share for the 3rd quarter, down from C$11.6 million for the same period a year earlier.
However, operating profits were up to C$18.3 million from C$12.2 million. Revenue was up to C$59.9 million almost double the pervious figures.

We can understand investors sitting on large profits pulling the pin as these figures are not as good as some of the numbers that we have reported for other companies on this website. However, this does appear to us to be really overdone. Did they all miss the fact that the Gibraltar mine will increase annual production capacity to 100 million pounds of copper by 2008, an increase of almost 50%!

Lets take a look at the chart; we can see the sell off and also the beginnings of a bounce the very next day. Are the same people who sold buying back in or is it the cute investor who has patiently waited for this chance to get into this mining stock at a very reasonable entry price. We don’t know, neither do we care, but for us it is a wonderful opportunity to invest our hard earned cash into this stock.
We had previously recommended Taseko at $2.78 and on Friday it closed at $2.26.

TGBChart2


Our course of action will be to buy again on Monday.

For the purposes of our progress report we will use the original purchase price, as we believe it is only fair to do so.

This next purchase will be regarded as a nice bonus.

(TSX: TKO, AMEX: TGB)

12 August 2006
Friday
Aug112006

Portfolio: General notes

Goldcoin2

Answers to a few general points that come up in your emails regarding our portfolio.

We do not work for any of the gold mining companies that we write about or hold an investment in. In fact we only work for ourselves, investing our own funds into the investment opportunities that we believe will make us handsome profits.

All of our research is free and published on this website.

We have researched many stocks that do not get a mention because we don’t consider them to be amongst the best at that particular time. As and when we feel the time is right we will publish our findings.

We do not have a private newsletter to which you can subscribe for a fee. At the moment we don’t feel that we will take this route as we are happy to generate profits, enjoy those profits and enjoy writing about them, come what may.

We do cover silver and uranium but not on this website, just click on to silver or uranium to be transferred to those investment sites.

We tend to shy away from options trading and the futures market as it may be a vehicle for creating wealth quickly, however, it is also a vehicle that can wipe you out in no time at all. Our progress may be slow as investments need time to mature, but this current bull market in gold will ensure that it is certainly not dull.

Occasionally we suggest a bet, this will more than likely be based around the stocks that we are already have an investment in. But if we have identified a short-term gain regarding gold, then we will tell you what we are doing, why we are buying, how long to hold for and why we are selling.

This site is designed to have fun with your gold related investments not to be full of stress, so don’t risk more of your money than you can afford to lose. Also bear in mind that we not looking for a safe haven to put our money, we are looking for investment vehicles that we think will DOUBLE within 12 months. This strategy therefore carries with it risk, so relax into it and don’t go too mad on any one investment.

Never fall in love with a stock, its hard for us not to I know, but discipline is ever so important.

Keep the comments coming as it adds a little balance to our analysis.


11 August 2006
Friday
Aug112006

The HUI Index: Where next?

We appear to be treading water at the moment, or is it the lull before the storm?

There is an eerie stillness at the moment as the HUI slides sideways constantly teasing her onlookers. I like to put it down to the August vacation period but that seems to be a little simplistic. After all not every nation on the planet goes on vacation at the same time, in fact some countries operate on a totally different calendar to that of the western world.

Looking at the wedge formation that is forming in the chart for both gold prices and the unhedged gold mining HUI index, it looks to us that we are close to a convergence that will result in an upward breakout. Gold as we have just witnessed can move in the opposite direction to what would be normally expected. Whether this is due to the theories that GATA put forward or not, we don’t really know. But we would expect gold to move upwards when we have a terrorist threat unfolding as we do now.

Gold11Aust2006


HUI11August2006


For the moment we are watching the situation while researching other opportunities in this sector. Many gold mining stocks appear attractive but the timing or their particular chart does not scream buy, buy, and buy, to us. So for the time being we are sitting on the fence waiting for the bargains to identify themselves.

11 August 2006
Wednesday
Aug092006

Agnico Eagle Gold Mines Ltd: The Bet!

While helicopter Ben groomed himself for stardom we had a small wager on an upward move for Agnico Eagle based on a rate freeze.

The rational being that the rates would not be changed, the dollar would weaken, gold would rise and Agnico Eagle would rise with it. As we said in yesterdays article, any vehicle could have been chosen and some would have generated more cash than others. However, in the event of getting it wrong we would be left holding Agnico’s stock, which is just fine and dandy with us. We are of the opinion that this stock represents terrific value at the moment so for us there is downside.

However, the objective was to win and make a few bucks in what has become the doldrums for trading every single month. And you know our feelings on this issue.

Back to bet. We bought yesterday for $36.94. We then watched the price disintegrate as gold prices weakened. At times like this you tend to think that Day Trading is not for us, but we like the stock and did not take a large position.

All we can do is wait and do some research on other mining investments that might be worthy of our future investments. We do have a large watch list we is constantly under scrutiny and re-evaluation. When we think that we have a winner we will most certainly publish it on this site.

The news comes through that the rate will remain unchanged, the first time for numerous months although it was not that hard to predict. The next day gold starts on the path north and Agnico Eagle which was a lot less that we paid for it starts its recovery;

GO Eagle GO!

Eagle moves up and we are now at break-even point, phew! This stock keeps on rising to $37.32, a rise of $0.38, be patient! Something we need to practice. The rise continues and shows a gain of about $0.47, yippee, however gold bangs its head on the $650 ceiling, meets resistance and starts to fall. The stock drops with it, we decide to sell at $37.28, may be too early but with a little profit of $0.34.

So we made a few bucks and had a little excitement in the doldrums to boot. No doubt there are better ways to do this, but, for us this move had no downside and as Warren Buffett once said, “the most important thing in investment is not to lose money”

So back to the big picture, hope you enjoyed the ride.

09 August 2006
Tuesday
Aug082006

Agnico Eagle Mines Ltd: Fancy a quick bet?

Our bet is that the Fed will hold interest rates today, with a subsequent rise in the gold prices, which will push the gold mining stocks higher.

EagleLogo2

Betting is not our particular thing, however, if we were betting people then today we would be looking for a way to take advantage of the FOMC meeting.

Whether you use spread betting, options, and futures or buy a gold mining stock likely to respond to a Fed decision is your choice.

As we are more interested in investment than straight out gambling we would shy away from betting as such. However, investment is a bit of a gamble anyway so we thought that we would take a quick look at it.

It’s a punt but we think that the rates will remain unchanged, even if they go up the market commentators will probably say that this is the last rise for some time so it is still positive for gold.

If you want the leverage that derivatives can offer along with the excitement and all that sweating, then that’s up to you. Being a little conservative in our thinking we would tend to opt for buying a mining stock at the opening today, say Agnico Eagle (or one of your favourites) and hold it for a day or so to allow the rate news to hit the media. With ‘in and out’ costs being comparatively cheap it won’t take much of a rise in gold to move Agnico and cover your costs. So, if you but 1000 shares in the stock and get a $0.50 rise, then you have made $500.0 less commission. If the stock goes up $1.0, then you have made a $1000.0.

Agnico closed at $37.20 yesterday I will report back tomorrow on how the bet progressed.

Don’t go crazy with this sort of move, only put down what you can afford to lose.

The downside is that we are wrong and gold falls taking Agnico with it. As we are accumulating this stock it is not a problem for us to hold it, but we will have lost the bet, technically speaking.

Good luck!

08 August 2006