Gold Juniors

[Daytr]

I bought back into NST today hoping that last night is a bottoming for gold. Looks pretty cheap at these levels. they are great little producer imo with a very lean, mean management team.

[Daytr]

Also finally got filled on my VXR punt. Its a real punt, but has come off soooo much think its a bargain. They have just topped up the coffers so shouldn't need any more funding for a while. Zinc is one of my favoured base metals but may take some time for LME stock piles to be chewed through. There has been very little investment in zinc exploration since Pasminco fell over & there are few major mine closures imminent.

[Bobcat.]

Does anybody know how much SOC is short of finance for its operations? I tried to glean it from their presentation but either it was hidden, or I'm blind.

Finance problems could account for the sell off down to 19.5 these past couple of days.

Cheers,

BC

[Daytr]

I'm pretty sure they have enough funding for their drill program & they just sold an asset so from memory they are sitting on around $8M in cash

[Daytr]

Sorry BC make that around $1.5M in cash in the parent Its a quite complex company structure. They have JVs which gives them $20M of free exploration through their subsidiaries. They did sell an asset for scrip, but I can't see mention of the funds in the latest presentation I think that is worth about $8M but it was sold by Gossan Hill which they own 87% of. They do need to tidy up the company structure to make it easier to understand. So I don't think they need to fund any exploration from the parent so that $1.5M is just to run the office & pay salaries etc I think. I was tempted to buy some more in the last two days & might still yet.

[Daytr]

It will be interesting to see how the juniors hold up today after last night's carnage in gold. NST down slightly on the open. Freed up a bit of cash yesterday so may look to pick up some more, but think will hold off a few days & see what happens next.

[Bobcat.]

Freed up a bit of cash yesterday so may look to pick up some more, but think will hold off a few days & see what happens next.

Reverse psychology comes into play here, Daytr. When gold advocates like you and me start to think it's definitely going to go lower, that's when the market sentiment is so negative it's time to buy.

Double bottom bounce coming? All it will take for the price of ASX gold digger stocks to rebound is:

1. Australia's interest rate cut today at 4:30pm with a corresponding drop in the AUD
2. US jobs data (nonfarm employment) unfavourable
3. US Home Sales unfavourable

2 and 3 are announced tomorrow night.

Don't be a paper trader. We need to follow the physical economic realities and then be patient, waiting for those realities to kick in, and they will...with a vengence (or rather on the back of desperate moves by the soon-to-be-fearful paper tigers).

I've got some NZX settlements due tomorrow which I'll be taking across to my AUD multi-currency account for a top up on a few digger stocks that IMO look oversold on recent panic.

BC

[Daytr]

I think you are right BC, however you have to consider what is going on in the US futures market when making investment decisions as at the moment it is driving the price. Like it or not. I would rather see a double bottom confirmed than jump the gun & get it wrong. I have a reasonable stake mostly in NST, SOC & a real flyer in VXR but also have some on the sidelines to buy in at some point.

[JBmurc]

Yeah thought about buying some more PGI 4c instead topped up my ROC holding
Also going cheap ... We are certainly very close to all time lows in many PM shares ....

[blueswan]

When will this end, NCM now just getting lower and lower. Strange we dont even see a rotation of Financials to Mining since now both sectors down. I am still holding long positions in BHP and RIO which are still profitable but losses in NCM mounting. All this yeah nah yeah regarding trimming of QE and market reacts on this vacillation as well.