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December 8, 2009 Dear Friend,
We raised our investment rating for
AngloGold to Overweight owing to its significant discounted
valuation at almost half of its peer averages, which we
believe offers upsides as it reduces hedge exposures and
develops new mines in Colombia or elsewhere. Expectations
are very low, and its shares discount by over 40% the
appropriate benefits of current gold prices.
Base metals continue to rise
regardless of news in anticipation of brisk global growth
next year. Last week copper, zinc and aluminum LME spot
prices rose 4%, 7% and 8%, respectively, to new 2009 highs.
LME nickel inventories at 142,770 tonnes are very near
breaking November 1994 all-time prior records. Gold price
volatility in both directions has been magnified with the
withdrawal of Barrick Gold, the largest buyer.
As of Thursday December 3rd we ranked
#11 among all individuals from over 250 firms (presumably
over a thousand individuals) for the performance of our
research recommendations in calendar 2009 in the First
Coverage database, but we expect to have given some ground
with gold shares in the past two sessions. We continue to
strive to perform.
Faithfully,
John C. Tumazos
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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