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The stock picking tournament this week targets gold stocks. We’ve asked you to pinpoint the best performing gold stock for the week and your reason why. The winner will be sent a $500 cheque in the mail.

Below we’ve collated your responses. Lihir Gold was the most popular bet this week, followed by OceanaGold and Andean Resources. Take a look at the reasons why.

And if you forgot to place your vote – remember to read this Thursday’s newsletter.

Company Name  ASX Code  Share Price  % votes
Lihir Gold LGL  $3.05  13%
OceanaGold Corp OGC  $0.72  9%
Andean Resources  AND  $1.46  8%
St Barbara  SBM  $0.37  8%
Mundo Minerals  MUN  $0.195  7%


Lihir Gold  – 13%

“LGL is a great stock and gold looks like it may have a bit of a bull run this week which will be reflected well in the price of LGL.”

“ASX Index will drop again this week. Fear factor, panic selling and shift the money to buy gold stock.”

“My stock pick is LGL as I believe that they have good potential in this difficult market and as financials drop there will be an increase investor exposure to Gold.”

“Just because I’ve already got Lihir in my portfolio already. I think they are under market at the moment and with the market being so volitile anything could happen.”

“Best of Gold stocks, plus the chart looks pretty showing a downward line with a desire to rise, also a head & shoulders with a pointing hat.”

“I think LGL will move up again to a target price of $3.35 . It has been above this and since October last year has had a steady move in this direction. The placement of 171m plus shares, to an undisclosed buyer also points to the future of the company.”

OceanaGold Corporation – 9%

“OGC. Why…..This company has been sold down way to much…previous price was $3-4 dollars. The mine in Reefton is quite exceptional.”

“gut feeling”

“Ocean mining has great potential. While it is unlikely that there will be a great discovery in 1 week, the potential upside is there.”

“OGC is one of the largest gold producers in Australasia. Problems with a stgelopment in the Phillipines has depressed the price as has the perception of NZD hedges as a negative. Reality is that the company is a profitable producer which hit $1.10 recently (up from 22c) and will continue to go up. An announcement re Didipio partnership would see this outperform other goldies this week.”

“I believe Oceana Gold is the most undervalued gold stock on the ASX producing way more gold than its peers at a very low market CAP with cost at around $400 per ounce. I believe it should be $2 +”

“I think it will reach $1.10. This is a stock that has been well and truly oversold. There have been a few spikes in the share price recently. It has settled down around 70c and I think it’s ripe for another run. It’s not glamorous or sizeable like Newcrest, which is probably a better long term bet. OGC does offer some shorter term trading possibilities for those who have time and inclination to speculate. So here’s hoping that OGC hits $1.00+ next week!”

St Barbara Limited – 8%

“Stock looks way oversold on RSI and is a large producer ramping up for even higher production.  So good leverage to gold price which is shaping for an up move in coming week.  Enough shares on issue for interest by instos.  At target price of 43 cents it remains below previous resistance levels but if stock  reaches these levels it could prove temporary.  Better value is TRY which is a producer with no debt but looks less like a one week trade than SBM.” 

“I have chosen St Barbara Ltd. My research indicates this stock is an emerging Australian gold producer. It is a high cost producer which provides healthy upswing when price of gold spikes up violently, which I think is coming due to constant barrage of bad economic data. SBM has some of Australia’s best land bank and the Gwalia operation has very high grade Ore. Instos have been accumulating of late. I’m confident its got to be rerated with upcoming quarterly due soon. I own the stock so am biased.”

“St Barbara has recently completed a share issue, which has enable them to strengthen its balance sheet.  SBM has a very good quality resource and its price has fallen considerably over the last week, and hence will rebound this week.”

“I selected SBM simply because I have had some interest in them in the past.”

“With lowering production costs and increased output SBM should be set to gain from any further strengthening in the gold price as investors look to equity with producers instead of buying gold outright.”

“SBM has been sold off heavily over the last week or so, in spite of its promising exploration results and relatively low operating costs. I think the price will bounce back this week as gold will be the increasingly safe haven for investors.”

“One off expenses now in the past. Unhedged. Production Increases.”

“Recent placement at 41c will strengthen its balance sheet as it aims to increase production as Gwalia Deeps comes online.”

Andean Resources Limited – 8%

“Andean resources owns one of most excitng gold projects in argentina. The positives for AND are: the project is in a mining friendly country, current reserves stand at 1.5m ozs, grades are very high averaging 12/g AND has no debt and $35m in cash, drilling is continuing and recent reports indicate an increase to total reserves will occur. the company is dual listed on toronto exchange with significant institutional shareholders. Annual production rate of 350000ozs is being planned with a cash cost of us$200 an oz. what a beauty”

“Solid company with prospects in the near future.”

“Reason: Good fundamentals and very low production cost. Moving average is increasing. AND has been trending upwards in recent months and hopefully this will continue.”

Mundo Minerals Limited – 7%

“MUN has been left behind in the recent gold upsurge due to previous issues relating to management & production delays. These issues have now been laid. P/E ratio is less than 4x based on conservative estimates with a realistic P/E ratio of 2.3 expected this year due to improving gold prices (Au$1400/ounce) and lowered operating costs.”

“MUN (Mundo Minerals) looks great.”

“Small gold miner in South America, plenty of gold, share price beaten down, chart shows signs of an upswing, equity rally will peter out and people will go back into gold stocks.”

“Valuation increase given profit outlook and currently low prospective PE.”

“Quality assets & management.Cashed up punters are testing the waters.”


More articles in this week’s newsletter

The stampede into gold stocks

18 Share Tips – 16 March

Gold stock picks from this week’s tournament

Why the financial crisis is good news for this stock

Top 10 CFD stocks for the week

Stocks & Stats to watch out for this week

More Breaking News


Please note that TheBull.com.au simply publishes reader comments on this page. The publication of these comments does not in any way constitute a recommendation on the part of TheBull.com.au nor on the part of the reader who wrote the comment. You should seek professional advice before making any investment decisions.