Below are five AIM listed companies that could potentially provide their shareholders with a welcome Christmas cheer, all five are currently working on key developments. The companies listed below could potentially offer good share price appreciation, but, if it does not go to plan and the next key announcement is a disappointment, then a hefty share price drop could also be on the cards.
As always, when looking at most AIM stocks, the risk element needs serious consideration alongside the future economic outlook and the ability of companies to raise future funds, but all five have some very interesting characteristics which are worth a place on the "research and watch" list in my opinion.
The five stocks are in the primary sector and are concerned with natural resource exploration and production.
Without further ado, I will cut to the chase:
Kalimantan Gold – Project Deals
Now, I will start off with my wild card, Kalimantan Gold Corp Ltd (LON:KLG) a relatively off the radar investment with a dual listing on the AIM and TSX VENTURE exchange (making KLG valid for the ISA). With interests based in the richly natural resourced country of Indonesia, Kalimantan is currently working towards and hoping for deals in three potentially lucrative project areas concentrating on coal, gold and copper. The coal deposit is potentially 270 MTs of between 4,894 and 5,376 kcal/kg coal and would generate royalties on a relatively realistic lead time. This stock has risen over 100% during the past month as the shares have been snapped up in anticipation, and is definitely one to watch in my opinion especially considering a low share issue and market capitalisation compared to the potential.
KLG on the IBP coal concession: “The Directors remain confident that a sale of the coal concession of IBP can be completed on terms satisfactory to the shareholders of IBP and the Company.”
KLG on the copper and gold: “The Directors are hopeful that agreements can be reached for both projects that will see extensive drilling of the KSK Contract of Work's massive magnetic bodies identified below existing drill holes, which have the potential to yield major porphyry copper deposits and the continued exploration and drilling on the epithermal gold project to see that project developed for gold production.”
