Today, dearest Irregulars, I’ve been a bit thwarted in my efforts to find new and intriguing investment ideas for you — that is, I’ve found some, certainly (they’re always out there), but they haven’t matched the template for what I generally like to share with my favorite readers (yes, that’s you).
The first one I considered was another China-connected gold mining stock — this one is being teased by Tom Bulford for his Red Hot Penny Shares over across the pond as follows:
“How you could stake your claim in the audacious bid to… GRAB 4 MILLION OUNCES OF
CHINESE GOLD!”
So that sounds pretty good, right? Well, it is an interesting stock — this one is a gold explorer in Kyrgyzstan, with several properties in the Tien Shan belt that extends into China, and some Chinese ownership. You can see the teaser here if you’re interested.
But, though I dearly love my UK readers, they are but a small portion of the group here … and this stock trades only on the AIM, without a pink sheets listing or any other easy way for folks to buy the stock if they can’t trade in London, so I didn’t want to focus entirely on this one idea today.
If you’d like to follow up, the potential does look intriguing at first blush — it’s Chaarat Gold Holdings, ticker CGH in London. Trades right around 50 pence right now, and has spent the past couple years working toward a feasibility study that they still don’t have, but they think they have identified a Resource of 4.406 Moz at a grade of 4.2 g/t gold across the two deposits that will make up their first two mines (hopefully) and the company just sold a big swathe of new equity so the market cap is now right around $200 million. That means, after the capital raise (which should help with infrastructure buildout and construction, one hopes), we’re paying more than $40 per ounce of reported resources (ie, not “proven reserves” — they’re using JORC, not the Canadian NI 43-101 system), which some folks would consider to be fairly high … but they do seem to have at least half of that in a pretty easily-mined area that could start production within a couple years, and they also own other projects that are in the very early stages of exploration. I’m ...