After the summer 'break' we return for our 37th Proactiveinvestors 0ne2One Forum, at the Chesterfield Mayfair in London, hosted by Oxus Gold, American Uranium Corp and Gippsland Limited. Our forum will commence at 6pm sharp, as usual. Each company will have 30 minutes to present, followed by a wine and canape reception. We look forward to your attendance. If you haven't registered already, you can do so here
To say markets have been volatile over the summer would be something of an understatement. Financials have taken it on the chin, the US and UK Governments have been forced to step in to try and quell investor nervousness, the US dollar has staged a bit of rally, and commodities have pulled back - or have they?
Some certainly have, in particular nickel, lead and zinc have seen big drops, but other commodities, molybdenum, tantalum, gold and silver have actually help up rather well. Granted volatility in gold, silver and oil, all closely tied to expectations for the US dollar and economy, have been pretty extreme in recent weeks, but at the end of the day both are still at prices not many would have predicted just 2, 3 or 4 years ago. China continues to play in increasingly important role in commodity prices. A slight change of stance on the export of any resource has an immediate impact.
We have three very different companies presenting at our 37th Forum.
Gippsland Limited (AIM & ASX: GIP)
Gippsland is developing the 44.5 million tonne Abu Dabbab and the 98 million tonne tantalum projects which are set to become the world’s second largest producer of the strategic metal tantalum. Tantalum is an essential component in high spec electronic equipment such as cell phones, laptop computers plus video and still cameras. It is an essential component in jet engines and high temperature alloys used in numerous industries. Gippsland has completed a Bankable Feasibility Study, an Environmental Impact Assessment to World Bank Standards (The World Bank’s IFC is Gippsland’s second largest shareholder) and has sold more that 90% of its tantalum production for the next 10 years to the German tantalum manor HC Starck GmbH. Detailed project finance negotiations are in progress with the German government owned KfW Bankengruppe.
Oxus Gold PLC (AIM: OXS)
Oxus is the only publicly listed gold mining company with primary operations inside the Republic of Uzbekistan. Oxus was listed on London’s Alternative Investment Market (AIM) in 2001 and is currently producing significant quantities of both gold and silver from its 50% stake in the Amantaytau Goldfields JV (AGF). Located in the Kyzylkum region of Uzbekistan, AGF is situated on one of the world’s largest areas of gold endowment, the Tien Shan belt, second only in size to that of the Witwatersrand basin. AGF also enjoys the privilege of being positioned just 40 kms south of the world’s largest single open pit gold mine at Muruntau. Since May, three directors have bought shares worth almost £60,000. In most books this probably exceeds a mere ‘to soothe shareholders and support a flagging share price’ gesture – especially when the FD took most of them! With 381 million shares in issue, Oxus’ market cap is £54m, giving it a value of £38 per attributable resource ounce. This is one of the lower valuations for the region, and can be sized up alongside Wardell Armstrong’s NPV of $330m (£188m) at 7%pa discount.
American Uranium Corporation (OTCBB: AUUM)
American Uranium Corporation’s current principal focus is the development of uranium mineral properties located in the State of Wyoming. Uranium mining interests in Wyoming have an extensive history dating back to the 1950’s. The resulting infrastructure provides uranium mining companies with an effective business climate in which to operate. The company’s near term objectives are to continue environmental baseline and permitting activities at the Reno Creek Project and hydrologic test wells are scheduled to be drilled during the summer of 2008. American Uranium holds approximately 18,000 acres of prime Wyoming mineral rights with significant resources in the ground and is pursuing acquisition of additional US uranium properties.
Our forum will commence at 6pm sharp, as usual. Each company will have 30 minutes to present, followed by a wine and canape reception. We look forward to your attendance. If you haven't registered already, you can do so here