The Outlook For AIM Listed Mining Companies In 2002 (Part 2)

Date: January 3, 2002


The Outlook For AIM Listed Mining Companies In 2002 (Part 2)


Gazing at the list of mining companies listed on AIM on New Year's Day, with a small kango hammer bashing away at the back of the skull in memory of the night before, a series of short descriptions came to mind which might help readers keep tabs on them in the current year.

African Gold, for instance, is the Irish company whose gold mine in Zimbabwe was turned into profit by the inspired leadership of an African Indian lady. Where will she take the company from here now that she is to be involved at head office in Dublin? Angus & Ross is drilling for tantalum at the top of a mountain in Greenland in hope that the results will excite Cabot Corporation, a giant American tantalum consumer , which is one of its biggest shareholders. Aquarius Platinum is still aiming to produce 600,000 ounces of platinum group metals in 2004 despite slight slippage in the development schedule at the Marikana project.

A number of commentators now think that AuIron Energy will change its mind again and list its Ballymoney power project in Ireland as a separate company. Brancote Holdings would still be happy to receive a bid for its Esquel project in Argentina at the right price, but is bashing on towards production in the meantime. Cambridge Minerals has still not completed the formalities of the joint venture with Newmont Mining of the US and investor perception may change when the two companies are seen to be working together in Spain.

Centamin Egypt has a great project as demonstrated by the premium on the first day of listing. Cluff Mining has come a long way with its platinum projects in South Africa, but can it maintain the pace? "Tread not on my dreams…" pleads the Professor who founded and runs Conroy Gold and Diamonds In Ireland. Dwyka has the luxury of solid cash flow from building materials to back its alluvial diamond operations in South Africa. And Ennex has moved into oil to counter balance its dependence on the big Shaimarden zinc project in Kazakhstan.

Eurasia Mining has already benefited from a change in management and could go places with its platinum group metal exploration in the Urals this year. European Diamonds continues to track down primary sources of diamonds in Finland, but this can be a long process. Firestone Diamonds is on a similar hunt on Botswana, but has the benefit of growing cash flow from alluvial diamond production in South Africa.

First Quantum provides excellent exposure to the copper price as a result of its increasing production in Zambia. Golden Prospect is the dark horse of the AIM market as it has an interesting portfolio of Australian junior resource companies worth more than its market capitalisation, as well as some interesting platinum prospects in Sierra Leone and Ethiopia. And 2002 should be the year when Gold Mines of Sardinia gets its act together from a new domicile in London and confirms the high hopes for its new discovery in Sardinia.

Griffin Mining is expected to kick off the year by making an encouraging announcement about its mining licence at the Caijiaying copper gold project in China. Gympie Gold should establish itself fully over here with its profitable operations in coal and high grade gold. The gold exploration prospects awarded to Hereward ventures close to those of Navan in Bulgaria should attract attention in 2002. And Hidefield, the new listing by John Prochnau and Cedric Middleton in 2001, should announce a deal or two.

Any easing of tension in the Sierra Leone/Liberia region of West Africa will have a beneficial effect on Mano River which is building a superb portfolio of gold and diamond discoveries there. What Minco needs is an improved zinc price to put some excitement back into Irish exploration, but John Teeling might come up with a totally new project. Murchison United will at last complete the acquisition of Neves Corvo and then its management can really get to work.

New Millennium has its work cut out to convince UK investors that its secret niobium treatment process works on a commercial scale. Oxus Mining has the ability to retrieve its rating and keep development of the Amantaytau gold project in Uzbekistan on track. Minews commented very recently on Petra which is keeping its fingers crossed for a successful outcome to the privatisation of the Alexkor diamond mine in South Africa. Portman consistently beats every expectation for its iron ore operations in Western Australia and deserves consideration as a banker in any mining portfolio. Tertiary's management has already proved its ability to make money for investors in Australia, now it has some interesting projects in Scandinavia.

Lastly there is ZincOx. Its shares suffered from some profit taking by earlier investors in a listless market after it floated in December. But Andrew Woollett and his crew have done it before with Reunion Mining and are determined to make money for investors again. That is what it is all about and hopefully more retail brokers and managers of small and flexible funds will put mining on their radar screens. London is coming back into its own with a flow of listings on AIM. Provided the quality of the companies involved remains high and lawyers and accountants do not kill this particular goose with sky-high fees, it should be one of the market's more exciting sectors in 2002.



Gazing at the list of mining companies listed on AIM on New Year's Day, with a small kango hammer bashing away at the back of the skull in memory of the night before, a series of short descriptions came to mind which might help readers keep tabs on them in the current year.

African Gold, for instance, is the Irish company whose gold mine in Zimbabwe was turned into profit by the inspired leadership of an African Indian lady. Where will she take the company from here now that she is to be involved at head office in Dublin? Angus & Ross is drilling for tantalum at the top of a mountain in Greenland in hope that the results will excite Cabot Corporation, a giant American tantalum consumer , which is one of its biggest shareholders. Aquarius Platinum is still aiming to produce 600,000 ounces of platinum group metals in 2004 despite slight slippage in the development schedule at the Marikana project.

A number of commentators now think that AuIron Energy will change its mind again and list its Ballymoney power project in Ireland as a separate company. Brancote Holdings would still be happy to receive a bid for its Esquel project in Argentina at the right price, but is bashing on towards production in the meantime. Cambridge Minerals has still not completed the formalities of the joint venture with Newmont Mining of the US and investor perception may change when the two companies are seen to be working together in Spain.

Centamin Egypt has a great project as demonstrated by the premium on the first day of listing. Cluff Mining has come a long way with its platinum projects in South Africa, but can it maintain the pace? "Tread not on my dreams…" pleads the Professor who founded and runs Conroy Gold and Diamonds In Ireland. Dwyka has the luxury of solid cash flow from building materials to back its alluvial diamond operations in South Africa. And Ennex has moved into oil to counter balance its dependence on the big Shaimarden zinc project in Kazakhstan.

Eurasia Mining has already benefited from a change in management and could go places with its platinum group metal exploration in the Urals this year. European Diamonds continues to track down primary sources of diamonds in Finland, but this can be a long process. Firestone Diamonds is on a similar hunt on Botswana, but has the benefit of growing cash flow from alluvial diamond production in South Africa.

First Quantum provides excellent exposure to the copper price as a result of its increasing production in Zambia. Golden Prospect is the dark horse of the AIM market as it has an interesting portfolio of Australian junior resource companies worth more than its market capitalisation, as well as some interesting platinum prospects in Sierra Leone and Ethiopia. And 2002 should be the year when Gold Mines of Sardinia gets its act together from a new domicile in London and confirms the high hopes for its new discovery in Sardinia.

Griffin Mining is expected to kick off the year by making an encouraging announcement about its mining licence at the Caijiaying copper gold project in China. Gympie Gold should establish itself fully over here with its profitable operations in coal and high grade gold. The gold exploration prospects awarded to Hereward ventures close to those of Navan in Bulgaria should attract attention in 2002. And Hidefield, the new listing by John Prochnau and Cedric Middleton in 2001, should announce a deal or two.

Any easing of tension in the Sierra Leone/Liberia region of West Africa will have a beneficial effect on Mano River which is building a superb portfolio of gold and diamond discoveries there. What Minco needs is an improved zinc price to put some excitement back into Irish exploration, but John Teeling might come up with a totally new project. Murchison United will at last complete the acquisition of Neves Corvo and then its management can really get to work.

New Millennium has its work cut out to convince UK investors that its secret niobium treatment process works on a commercial scale. Oxus Mining has the ability to retrieve its rating and keep development of the Amantaytau gold project in Uzbekistan on track. Minews commented very recently on Petra which is keeping its fingers crossed for a successful outcome to the privatisation of the Alexkor diamond mine in South Africa. Portman consistently beats every expectation for its iron ore operations in Western Australia and deserves consideration as a banker in any mining portfolio. Tertiary's management has already proved its ability to make money for investors in Australia, now it has some interesting projects in Scandinavia.

Lastly there is ZincOx. Its shares suffered from some profit taking by earlier investors in a listless market after it floated in December. But Andrew Woollett and his crew have done it before with Reunion Mining and are determined to make money for investors again. That is what it is all about and hopefully more retail brokers and managers of small and flexible funds will put mining on their radar screens. London is coming back into its own with a flow of listings on AIM. Provided the quality of the companies involved remains high and lawyers and accountants do not kill this particular goose with sky-high fees, it should be one of the market's more exciting sectors in 2002.