I would like to nominate many stocks! I agree with earlier posters re MXP; VOG etc, but the one I like is a little traded copper stock - Copper Resources Corporation.
Floated earlier this year at about 100p, they now languish at c40p. Initially they had one of the largest undeveloped copper porphyry prospects in the world in the Philippines which is becoming mining friendly. This was interesting but the capex put me off. I watched the stock drop as they added good prospects in Namibia.
The thing that really caught my eye was when they announced a deal in September with the Forrest Group. This is a very old and well established Belgian company that has its fingers in many pies in the Democratic Republic of Congo. For issue of CRC stock, CRC obtained three existing copper mines with proven (not to JORC standards) resources of over 5bn lbs of copper. At an effective price of 1/5th of a cent per lb. They also got hold of working (subject to a bit of refit) mine machinery and arc furnaces etc. The Forrest Group will no doubt bring more deals to the table.
So what, we have all heard of many great copper stories.
The company is currently valued at c£18m after the issue of new shares to Forrest Group (ADVFN info is not correct). They have cash of about $15m from the float. That plus the assets makes them interesting.
As we all know these mining companies take years to actually get going. CRC will now be different. The mines they acquired will take about 18 months of work to get into full production. However, there is a large amount of tailings which they will start to process in the first few months of 2006. At the stated rate of 4,000 tonnes pa (at 95% copper), they could and should generate revenues of c$13.3m at $3,500 pt copper (it is now over $4,000 pt). Margins not known, but I would expect them to be over 40%.
That makes c £5,320,000 profit or approx £2,926,000. An eps of approx 6.3p for 2006. A pe of roughly 6.
There is risk, and there is DRC risk! However, the cashflow, positive copper environment, the Board, the high grades and the projects in Namibia and the Philippines makes this a very interesting play. As the mines come into full production in 2007, at 40,000 t pa the pe reduces to about 1. For a summary of the situation from the company perspective this is the best RNS to read
I hope this makes it through the mill !!! Good luck to all next year
