Strong Price Action

Tuesday, Dec 02 2008 by

Randgold is showing excellent relative strength in these markets.  With the FTSE 350 Mining Index down 75% since May... RRS has bounced sharply and is barely off it's highs... still 32% up over a 12 month basis.  What is going on here? 

This looks to me like extremely anomalous behaviour for the sector...  i'm inviting any comment here... it looks ripe for new highs as soon as the market turns...

I'm buying some now and asking questions later...

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Barrick Gold (Holdings) Ltd, formerly Randgold Resources Limited, is engaged in gold mining, exploration and related activities. The Company's activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d'Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA. more »

LSE Price
6546p
Change
 
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
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  Is LON:RRS fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

MrT 2nd Dec '08 1 of 1
1

Huh, it's odd. The latest earnings update (Nov 6th) indicated that lower gold prices and production (a decline in the average grade mined at both the Loulo and Morila operations in Mali) had reduced third-quarter sales by 18% compared with Q2. They did say that they expected a stronger fourth quarter from an operational perspective, but I am likewise perplexed that the gold price volatiltiy hasn't hurt them more. Looks a mispricing on the upside to me, pending further info.

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL66280620081106

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