SGX - Sino Gold

[RichKid]

Just did some quick reading on this company www.sinogold.com.au (good website for investor info)

Looks like it's reaching that important stage just before production where the sp can take off (if all goes well) with a world class project.

Lots of news articles and broker reports (not independent reports imo) on co website. Southern Cross Equities (June 2005 report) says the main Jinfeng project satisfies high standards:

The Jinfeng deposit is significant deposit on the global scale with resources of ~3.5Moz and lots of potential. The deposit fits the global gold majors base criteria of being a triple two deposit or two million ounces of reserves, two hundred thousand ounces of production per annum, and cash costs below US$200 an ounce.

Here's a chart.

 

[noirua]

Having a closer look at SGX and the report by Mr Jake Klein, CEO: http://www.brr.com.au/event/SGX/1116/12448

 

[Sean K]

I reckon SGX will be one to significantly benefit when gold turns. (along with LHG) Been watching, don't hold yet, but getting itchy fingers now.

1110 [Dow Jones] Sino Gold (SGX.AU) share price pullback since Sep.7 "tremendous" immediate buying opportunity ahead of ramp-up of company-making Jinfeng mine early next year, excellent longer-term prospects, says research house Fat Prophets. SGX trades last $4.39, down from $4.98 early this month, $6-plus early May, reflecting gold price pullback. "We believe the worst has passed. In the near term, we anticipate consolidation above $3.78 as Sino seeks to establish a base." (JAD)

Might have found a bottom at $4.00, with $4.70 next resistance IMO.

 

[RichKid]

I reckon SGX will be one to significantly benefit when gold turns. (along with LHG) Been watching, don't hold yet, but getting itchy fingers now.

1110 [Dow Jones] Sino Gold (SGX.AU) share price pullback since Sep.7 "tremendous" immediate buying opportunity ahead of ramp-up of company-making Jinfeng mine early next year, excellent longer-term prospects, says research house Fat Prophets. SGX trades last $4.39, down from $4.98 early this month, $6-plus early May, reflecting gold price pullback. "We believe the worst has passed. In the near term, we anticipate consolidation above $3.78 as Sino seeks to establish a base." (JAD)

Might have found a bottom at $4.00, with $4.70 next resistance IMO.

Hi Kennas
I've been following this too but haven't ridden it, tried to enter but missed out some time ago, learnt alot in the process. The issue now is whether that $4 support becomes resistance, it's been breached once and gold is yet to find solid support, let alone running up again. I do agree about the long term potential, FPM are long term people so even a 50c drop would be normal for them imo. I think it could get to $3/3.50 if this support doesn't hold, there is key level support around there from what I see.

Keep me posted about this if you can, maybe we can do some analysis...

 

[Sean K]

Hi Kennas
I've been following this too but haven't ridden it, tried to enter but missed out some time ago, learnt alot in the process. The issue now is whether that $4 support becomes resistance, it's been breached once and gold is yet to find solid support, let alone running up again. I do agree about the long term potential, FPM are long term people so even a 50c drop would be normal for them imo. I think it could get to $3/3.50 if this support doesn't hold, there is key level support around there from what I see.

Keep me posted about this if you can, maybe we can do some analysis...

RK, agree, $3.50 certainly a possibility. I'd say if gold gos to it's potential next support line at $540 then that's when SGX will hit $3.50. If gold's found a base at $570ish, then $4 is SGXs bottom too.

Agree on FP too. I'm a subscriber and they are still coming out with bullish forcasts on $1000 gold in the future, and I'm with them. Hold on tight is their call atm, and buy into good gold companies on weakness. I think this is one of those times, even if gold goes go to $540, that's a long way off $1000....

Will get the fundaments on SGX and post later.

 

[Sean K]

From SGX:

Jinfeng is Sino Gold’s flagship project and is considered to be the largest known Carlin-type deposit in China. Once developed, Jinfeng will be the second largest gold mine in China with production of 180,000 ounces per annum, and potentially the largest when the Phase 2 expansion increases capacity to 300,000 ounces per annum.

Construction commenced in February 2005 with commissioning and initial gold production forecast for the second half of 2006.

Jinfeng is located in Guizhou Province, 236km southwest of the provincial capital Guiyang. Sino Gold holds 82% equity in the Sino-Foreign joint venture with a Chinese partner.

Drilling at Jinfeng during 2005 resulted in Mineral Resources increasing to 4.0 million ounces and Ore Reserves increasing to 2.9 million ounces of gold.

Jinfeng is a quality, high-grade orebody which will be producing gold for many years to come.

Sino Gold is actively exploring the "Golden Triangle" region surrounding Jinfeng, with the aim of discovering satellite deposits within trucking distance of the Jinfeng processing plant and further multi-million ounce orebodies.

From Huntleys:

SGX has been active in China since 1996. The Jianchanling mine in Shaanxi Province is being sold while development of a new mine at Jinfeng in Guizhou, Southern China, is near complete. Jinfeng should produce 180kozpa from late 4Q06 with potential to expand to 300kozpa at modest cost. The White Mountain exploration project shows excellent promise. SGX suits growth oriented investors with a stomach for sovereign and development risk. Management is well regarded and has considerable operating experience in China. The balance sheet is strong while modest hedging leaves SGX exposed to gold price movements.

Concensus recommendations I have:

Strong Buy: 2
Buy: 1
Hold: 3

Now at $4.40, so perhaps $4.00 could be the low as indicated above, but need to watch POG.

 

[Sean K]

Touching $4.60 atm. Clear bounce from the $4 level which looks like a solid support line. I've no access to funds atm due to ANZ Margin Loan admin fiasco, so watching on the side watching forlornly.

Well, perhaps when gold hits that $570 level again I'll be able to get on...

 

[GreatPig]

Pushing through the downtrend line now after coming off a double bottom.

The double bottom target is around $5.40, which is now close, so can it keep going?

Cheers,
GP

 

[Sean K]

Breaking through $5.00 looked to be important. FP came out with a buy on this a week or so ago at about $5.00 too.

If POG holds up, this will keep going as well.

So, I think it will atm, unless gold breaks down under $620 again.

 

[Sean K]

Found some support at $5.00 today, but needs POG to be steady to keep the upward momentum. Looks to be falling over alittle with the rest of commods. Gold fairly steady but pure gold plays going out in sympathy with the rest.

I'm hoping for an entry on this between $4.50 and $5.00. The FP buy recommendation was at $4.92.

 

[Sean K]

Good support found at $5.00, bounced off it 3 days in a row. Perhaps I won't get it under $5.00????

Importantly gold rebounded again from under $620. This is forming into a sold support area. I think it's tested it 4 or 5 time and has rebounded above each time. Good sign. Now we need a disaster or Ill Kim to launch a rocket over Tokyo for gold to get a real boost.

 

[fleathedog]

Look at this baby fly!!

Gold Fields being on board in a serious way should hopfully kick along some of their early stage projects and provide a bag of new ones.

They've been announcing new ventures left right and centre. They've got a good (if short) track record so hopefully a few will pay off

 

[goetzuwe]

I think we must restart the discussion about Sino Gold. We are now at $7.30 and all explanations about the up and down are old. What is the reason for the raising?
There is something fundamental changing. I see some month the continue rising of Sino Gold. So I am since some days invest.

Good luck from old Germany for us in 2007.

 

[fleathedog]

Another great announcement! Upgraded resources at white mountain...

There now seems a good possibility that sgx will become a genuine multi mine company. They are a bit pricey at the moment IMO but have been a consistantly excellent performer.

Will be interesting to see what the new JV's turn up.

 

[siempre33]

I get this teaser email daily, [which has some good info in it that is not a teaser] that included this...about a miner in China....selling for around $7 a share, etc.....is it Sino Gold?...what do you think, as you know much more about the co. than me....thanx!

http://www.stansberryonline.com/PRO...200701GLD-AUT-1K&o=486082&u=14365569&l=815294

 

[bean]

Not very good at doing charts but has this formed a nice head a shoulders???
over the last few weeks
as you know I may be short term bullish on gold

 

[michael_selway]

I get this teaser email daily, [which has some good info in it that is not a teaser] that included this...about a miner in China....selling for around $7 a share, etc.....is it Sino Gold?...what do you think, as you know much more about the co. than me....thanx!

http://www.stansberryonline.com/PRO...200701GLD-AUT-1K&o=486082&u=14365569&l=815294

Hi does anyone know teh mien life of thsi company

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS -7.4 2.0 25.2 48.0
DPS 0.0 0.0 0.0 0.0

thx

MS

 

[56gsa]

Hi does anyone know teh mien life of thsi company

10 years for White Mountain according to this from eureka report - not sure about Jinfeng - interesting this came out about same day that Aitken was tipping sino gold as a winner for gold exposure!

Sino Gold Mining Ltd (SGX) explores, operates mines and produces gold in China. It is set to have a big year in 2008 as its focus turns from the development of prospects to the production of gold from its Jinfeng and White Mountain mines. Sino Gold has been one of the ASX’s biggest winners from the recent surge in gold prices, consistently outperforming the S&P/ASX 200 in recent months. A small amount of hedging leaves the company open to price fluctuations. The company recently announced an 81% increase in its ore reserve estimate for White Mountain, to 6.5 million tonnes at 3.8 grams per tonne of gold, or 800,000 ounces. White Mountain now has a mine life of at least 10 years, based on this update. Commercial production for the site is expected to start late this year or early next. A recent power outage at Jinfeng led to production being revised down to 12,700 ounces for February. Normal production is expected to return later this month. Despite corporate appeal, sovereign and development risks remain very real concerns. On a price/earnings multiple of about 50, Sino Gold is too expensive at current levels. Avoid Sino Gold
Collected Wisdom
By James Frost 18 Feb

aitken said talking about a conference in sth africa...

The participants represented nearly all the stakeholders in the mining industry value chain throughout Africa. The sustainability of long-term commodity prices, to my mind, is a structural not cyclical phenomenon. Australia, as a producing nation, is a great place to invest on a risk-adjusted relative basis and you should continue to run an overweight position in our highest quality names. The supply side of the equation will continue to be constrained as the global mining industry struggles to keep pace with demand from the BRIC economies (Brazil, Russia, India and China).

My key recommendations remain: BHP Billiton, Fortescue Metals, Oxiana, Paladin, Kagara, Minara Resources, Western Areas, Apex Minerals, Newcrest, Sino Gold, St Barbara and Australian Worldwide Exploration.

 

[MRC & Co]

Have to say, I dont mind Sino at this time, even at current prices!

56gsa, looking through that list, its actually a pretty good selection if you ask me!

Who is Aitken?

 

[56gsa]

Who is Aitken?

who indeed...

Charlie Aitken is a director of Southern Cross Equities. He writes for Eureka http://www.eurekareport.com.au and is very likely to have interests in any of the stocks mentioned... particularly if they're crushing dirt

entertaining to read...

[from 16 nov 07] As Big Kev, rest his soul, used to say: "I'm excited". This is the biggest event in Australian equity market history [bhp vs rio]. However, the broader share price reaction to this monumental event is pretty much ho hum. The market just isn't seeing this for what it is. That is providing a tremendous investing opportunity for those with the vision to move into the next generation of beneficiaries of this industry-changing transaction. Stop looking at the Dow and start looking at what BHP is telling you. This is the seminal event we have been waiting for in resources and you shouldn't underestimate its significance.

Act now in the next generation before the corporate world does. I continue to recommend buying the following:


nResources stocks to watch
Stock Price P/E Ratio
Fortesuce Metals Group (FMG) 61.2 N/A
Oxiana Ltd (OXR) 4.06 12.4
Zinifex Ltd (ZFX) 16.09 5.9
Kagara Zinc Ltd (KZL) 6.29 14.4
Western Areas NL (WSA) 6.05 N/A
Alumina Limited (AWC) 6.85 14.9
Minara Resources Ltd (MRE) 6.49 6.2
CBH Resources Ltd (CBH) 0.615 12.1
Gindalibie Metals Ltd (GBG) 1.48 N/A
Newcrest Mining Ltd (NCM) 33.73 156.9
Lihir Gold Ltd (LGL) 4.01 N/A
St Barbara Ltd (SBM) 0.86 N/A
Sino Gold Mining Ltd (SGX) 7.3 N/A
Poseiden Nickel Ltd (POS) 1.205 N/A
Independence Group NL (IGO) 8.2 8.8
Ferraus Ltd (FRS) 1.105 N/A
Karoon Gas Australia Ltd (KAR) 3.5 N/A
Metals X Ltd (MLX) 0.425 N/A
Paladin Resources Ltd (PDN) 7.6 N/A
Energy Resources of Australia Ltd (ERA) 21.56 139.5
Portman Ltd (PMM) 10.3 15.8
Magma Metals Ltd (MMB) 0.57 N/A
Gloucester Coal Ltd (GCL) 5.7 24.8
New Hope Corporation Ltd (NHC) 2.37 27.6
Resource Pacific Holdings Ltd (RSP) 2.35 87
Centennial Coal Company Ltd (CEY) 4.45 404.5
Avoca Resources Ltd (AVO) 2.7 N/A
Red 5 Ltd (RED) 0.135 N/A