Golden Prospect
09/08/2005
 Robust economic growth across the globe has driven commodity markets higher in the past 12 months, with the mining and resource sector a direct beneficiary. With pressure on commodity prices set to continue in the foreseeable future, we expect Golden Prospect's (GOL) portfolio of emerging resource companies will flourish.
Uruguay Mining Exploration (UME) is Golden Prospect's largest holding. Recent full year results are a direct reflection of the Canadian miner's active exploration programme and production capabilities. UME has established a three-year mining plan targeting 100,000 ounces of gold per annum for the new Arenal mine in Uruguay. Exploration work to expand mine life to ten years is underway. Encouragingly, production levels of 24,844 ounces in the fourth quarter were achieved three months ahead of schedule.
Golden Prospect's second largest holding is the Australian mining and exploration company Perilya (PEM). Perilya's world-class lead, zinc and silver mines at Broken Hill have just had an outstanding year. Annual operating profit at the mine increased A$13.4 million to A$9.6 million.
Jubilee Platinum (JLP), the third largest holding, has continued to progress promising developments in Madagascar and South Africa. Following geophysics surveys in Madagascar, JLP remain confident the project has the potential to develop into a world-class nickel, copper and platinum deposit. In South Africa, Jubilee Platinum's Tjate project is exceeding expectations as exploratory drilling continues.
In addition to the portfolio of exploration and development companies, Golden Prospect holds a number of unlisted exploration interests in Sierra Leone and Ethiopia. We believe these exploration interests are potentially worth substantially more than the current book value.
Due to our expectations of ongoing strength in commodity prices, we are confident that Golden Prospect's well-diversified portfolio of small natural resource companies will continue to outperform. In addition, last year's move into corporate advisory and web publishing adds a further dimension to the company's earnings profile.
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