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Can anyone recommend some Shares in Gold/Gold Mining Companies

Discussion in 'Shares' started by Capt'n, 1st Aug, 2008.

  1. Capt'n

    Capt'n Member

    Joined:
    5th Apr, 2007
    Posts:
    7
    Location:
    Adelaide, SA
    Can anyone recommend some Shares in Gold/Gold Mining Companies?
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Capt'n

    Check out LGL Lihir Gold.
    It has a PE or over 80 but it's profits are expected to increase and PE will come down to 24. I believe that for the price it's a good buy

    If you are interested in Iron Ore check out PMM Portman ltd
    It's a company the defies the odds and it's price goes up
    when everything else is going down...:confused:
    It has a PE of approx 30 but it's expected to improve profits and drop PE to 13.
    Good stock IMHO but a bit pricey for my collection.

    Cheers
     
  3. dmesh87

    dmesh87 Member

    Joined:
    20th Mar, 2007
    Posts:
    23
    Location:
    Vic
    You might also want to take a look at Dominion Mining (DOM). Smaller cap gold mining company that produces about 108,000 ounces of gold per year with estimated reserves for another 8 to 10 years of operation. Its at an extremely low P/E ratio of around 5 at the moment and with a year of high gold prices and their production on target its expected to announce a large EPS percentage increase.

    I have no idea why its P/E ratio is so low, possibly due to it being smaller and people focusing more on Lihir gold and bigger gold mining companies. Its unhedged also so that may have something to do with it with recent drops in gold prices, but to me it looks extremely cheap. I'm also pretty sure it has very low debt and has just increased the amount of reserves of gold at its main mine with very little reaction from the market.

    But good luck on making a decision.
     
  4. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    DOM = $6.79 (31.Oct. 2007)
    Currently at $2.35
    Hmmm... it’s getting ‘cheaper’ and ‘cheaper’ every day...:rolleyes:
     
  5. dmesh87

    dmesh87 Member

    Joined:
    20th Mar, 2007
    Posts:
    23
    Location:
    Vic
    haha, Its just my opinion. But I prefer to look at the fundementals rather then letting the momentum of the market dictate my choices.