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Having read through their announcements over the past 6 months, SED seems well positioned both in Oz and O'seas to benefit from a steadily appreciating gold price. Good t/o again today.

Price fairly static but the solid buying since mid Dec indicates one or more parties are taking a strategic position. Few Oz Companies have such worldwide exposure outside the BHP/Rio Tinto sized Companies.

Another uncomplicated Producer and Explorer.

 

Also happily holding TAM who are an upcoming Producer [2Q 2006] with ongoing Exploration over a large area in WA and NT.

 

Have also trialed "The Inside Trader" [6 weeks using 3 different email addresses] and have to say they have provided some excellent BUYS with a winning stike rate over 90%.

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In reply to: TilehurstResearch on Wednesday 04/01/06 01:58pm

Tile...

 

not sure about the "worldwide exposure" you quote - more just Aus wide.

 

Also the hedging (forward selling) at A$660ish has got to be a handbrake ? still got a lot of that to use up.

 

Keen to hear if I've got any of that wrong http://www.sharescene.com/html/emoticons/unsure.gif

 

Fraz

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In reply to: Fraz on Saturday 07/01/06 08:28am

 

Hi Fraz.

Exposure I was referring to is their 15% holding in NuStar Mining [asx code NMC] who are in the process of merging with Canadian based gold miner Intrepid Minerals [Toronto exch: IAU].

 

Intrepid have a producing mine in Canada and excellent exposure in South America with a large gold/silver discovery due to start production early 2007.

 

The merger should be bedded down by the end of March under the new name of Intrepid Mines.

Have a read of the Nustar merger announcement under SED or NMC.

Then see what the anticipated gold production wil be.

 

IMHO this is the reason for the increased turnover in SED.

 

SED may only have 15% of NMC, but they are the largest shareholder and so this will add significantly to their total gold production income, on top of their Aus production.

 

I am very bullish about gold over the next 2-3 years as the $USD succumbs to the high internal and external deficits the US is running.

 

Have a read of some of the commentaries at kitco.com about the Chinese and Japanese reducing their exposure to the $USD and shifting their massive surpluses to other countries and into gold. Russia is also increasing it's gold reserves.

DYOR and especially look at the BIG picture by sourcing a number of sites on the macro economic factors in play.

I'd expect to see SED well over 35c by the end of March provided the gold price is over $USD 525/oz and the Nustar merger goes to plan.

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  • 1 month later...
TilehurstResearch...wish I was as confident as you..no posters here...waiting for this to rally...should see it bounce of the low at 21 and head higher from here...c'mon SED...srout some ruddy wings! A few announcements from the SED wouldn't go astray. cheers grommit
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Gidday All,

Saw a program today (probably a repeat) about the Cracow Gold mine in SE QLD. of which SED holds a 30 % interest (Newcrest the rest). This mine has huge potential and is already producing with production to be further ramped up in the coming months. I guess I came away thinking that at 20c this co. is a bargain considering what they are sitting on. The last half yearly showed revenue above $9 million and that will only get bigger. I just never understand how a company producing gold with revenue, proven growth and in profit has the same sp. as many mine exploration co.'s that have nothing except cash burn.

 

Cheers

 

OZGAZ http://www.sharescene.com/html/emoticons/weirdsmiley.gif

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In reply to: Fraz on Monday 27/02/06 07:35pm

Fraz,

Is that hedging contract for EVERY oz of Gold produced at Cracow by the JV with Newcrest or is for a certain amount per annum and ?

 

Cheers

 

OZGAZ http://www.sharescene.com/html/emoticons/biggrin.gif

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In reply to: OZGAZ on Monday 27/02/06 08:32pm

hey Oz,

 

I'm no expert in this one - just have a small on-going interest, which I occassionally wonder why I hold....

 

just from memory from reading the report (I'm not going to try & download it again to check the numbers - its about 9MB - its all 'scanned images' of txt)

 

anyway I think it said they sold ~1400oz, of which ~1350oz went to the forward sell contract (with none other than Macq Bank! they don't seem to be on the wrong side of too many deals...) - and note this is only for SED (ie who have 30% share in Cracow output), not Newcrest. So , no, not for all their 30% share of output, but looks like for most of it..

 

I suppose the reason to hold SED is that its a very low risk explorer - its got a lot of exploration potential, with very secure cash inflow to fund that exploration - not about to run out of funds like a typical junior explorer.

 

Their current situation ie being a producer, and in bed with Newcrest, puts them in a pretty good light to bring any decent find into production (ie such as securing the additional funding to build the mine infrastruture). But of course its a bet on SED having some success with that exploration, and bringing it into production to get additional gold sales outside the current hedging contract. The best/cheapest option is exploration success at Cracow, with everthing already in place.

 

Also the SP is unlikely too bounce around too much with the price of gold due to the hedging. I was surprised at the price drop to 17 c the other day - from all the above this is a very predictable company, and no real surprises in the report - might have just been one large holder getting out. Seems to have come back to the longer term 'fair value' (~22c) pretty quick.

 

With only a small following, this won't go far on rumour - it needs announcements (ie exploration news) to get attention and get the SP moving.

 

cheers

Fraz

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In reply to: Fraz on Thursday 02/03/06 07:12pm

Fraz,

Thanks for that - I suppose as you say they don't bounce around too much so maybe one could play it for a few cents here and there but in the end hoping for good exploration news that would drive it north while still holding.

 

Cheers

 

OZGAZ http://www.sharescene.com/html/emoticons/tongue.gif

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Amazing, SED sparks my interest and suddenly it's up 4c in a week......A delayed reaction to half year results !!??

 

Cheers

 

OZGAZ http://www.sharescene.com/html/emoticons/blink.gif

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