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Trans Siberian Gold [2006-12-30] |
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Trans Siberian Gold (TSG:LSE) Here is a down trodden gold share, that is highly speculative, but could give you an easy +200% return within a year! We have traded this share twice before in our portfolios and on both occasions we have made great profits. Below is an extract from our original report on this share. At the moment the shares are trading at 38p. We expect them to get back above 65p in a relatively short period of time. If they get back to around 135p then we will make a killing! Mines, Gold, - this is a recipe for extreme volatility. However; having said that, the shares of Trans Siberian Gold have been beaten down recently, when most Gold shares have been on a roll. They are stupendous figures for a company capitalised currently at £38m. Of course with mining or any business it is the profit that matters. Gold production costs vary with the quality of the ore and conditions etc. Gold mining is generally, a low margin business, so that it is only with the recent price rise of the metal that more mines have become economical. The directors of Trans Siberian Gold say: Our gold resources after accounting for production costs are worth $25 a share and our present market value considerably understates that. $25 is about £13-14 at current exchange rates, against a share price of 0.55p. On the face of it then an asset play of obese proportions.! But this assumes that the gold price remains around its present value. Any fall will reduce or maybe wipe out this margin. But any rise in gold prices will make it even more attractive. We make no bones about it , this is an ultra risky share. Estimated reserves can turn out to be, over optimistic, but even so, in this case we believe the further increase in the gold price, will push these shares back towards their high for the year of around 135.00p and in a relatively short period of time. This would give a very nice return on our money. Buy Trans Siberian Gold (TSG:LSE) up to 50p |
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