Mining investors get to see which glittering stocks really are gold

By NZPA

Tuesday 21st November 2006

Two Auckland geologists have begun a new venture offering investors in the mining industry independent advice.

The Mining Investor is a monthly email newsletter service for investors in global mining stocks, with a particular emphasis on stocks traded on the Australian stock exchange (ASX).

The initiative comes from two seasoned and geologists, Peter Roberts and Dr Ray Merchant, who are seeking to convey independent information to investors without the hype and technical jargon usually associated with company reports to potential punters.

There are over 500 listed resource stocks on the ASX. Over 400 are classed as junior miners or explorers, many of whom are active around the globe.

"This offers a rich field for investors to plough," Roberts says. "The newsletter's mission is to identify potentially highly-profitable mining stocks at an early stage in their growth and development."

Roberts and Merchant aim to inform investors about quality opportunities before they become "stock market darlings".

Each month the pair will provide expert analysis of at least one listed stock that they believe is under-rated and which they consider has the potential to outperform the market. They will not provide buy or sell recommendations, but rather will provide data on comparable stocks to illustrate the potential returns.

Roberts says The Mining Investor is concerned with longer term success and solid growth.

The price of a typical mining stock rises when an exploration success is announced. It rises further when a resource gets upgraded to a proven reserve, and increases again after completion of a positive feasibility study. Investor risk diminishes as knowledge of the resource increases.

The Mining Investor's focus is on companies which have made discoveries which the authors believe to be significant, but are still largely "under the market radar".

"The investment risk at this stage is relatively low if investors do their homework properly," Merchant says. "The potential for a stock to be substantially re-rated, as the market becomes more informed, is high."

For more information contact info@sharechat.co.nz

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