Careful stock selection for 2010 could prove as rewarding as it was this year and soem stocks to look out for is as below. These pure plays were favorites in 2009 and made some money . it could most definitely continue the trend in 2010
Australian Mining and Energy stocks For 2010
The genuine surprise package on the punters’ list is Gujarat NRE Minerals (GNM).
The Indian-controlled group is a pure play in hard coking coal, the likely boom commodity in 2010. Contract prices for 2009 of $US125 ($141) a tonne for the steelmaking raw material are likely to rise by a minimum of 30 per cent. Gujarat owns two mines in the southern coalfields of NSW with a resource base of 570 million tonnes. It closed on recently at 71c.
A maiden resource estimate in the March quarter from Sandfire Resources (SFR) for its DeGrussa/Conductor 1 copper/gold deposit in Western Australia is expected to more than justify its current share price ($3.33 on Friday), with exploration upside to come.
It says something about the lack of exploration success in the local gold industry that the gold stock to watch is an African explorer, Perseus Mining (PRU).
It is a standout candidate to be taken over in 2010, with its 400,000 ounce-a-year near-term production potential from deposits in Ghana and Ivory Coast expected to be too much for the big boys of the goldmining game to resist. Perseus rose 6.5c a share on Friday to $1.74 on heavy buying by Citigroup.
This is one area where share price fatigue has set in after a strong rebound from the distressed levels of February. Access issues for the juniors to rail and port infrastructure has not gone away. The trackside punters went for Gindalbie (GBG), developer of the Karara iron ore project in Western Australia’s mid-west, in a joint venture with China’s Ansteel.
It will be the project that finally convinces investors that the discount applied to magnetite projects in this market is just plain dumb.
Those that were trackside went for Chris Borwick’s Independence Group (IGO). It remained profitable when nickel prices were at their worst and has a track record of adding to its resource base. Exposure to gold through the Tropicana gold joint venture with AngloGold Ashanti doesn’t hurt. It last traded at $4.77 a share.
The punters settled on Cooper Energy (COE). It closed on Friday at 49c a share. At that price, exposure to its high-impact 2010 drilling program in overseas locations comes for nothing, given its market cap is more than covered by its $100 million in cash and its ongoing oil production business in South Australia’s Cooper Basin.
It is in a legal stoush with its partner but there is no taking away from the fact that Melbourne company Alliance Resources (AGS) has one of the best uranium exposures thanks to its interest in the Four Mile deposit in South Australia.
For those prepared to look beyond the delays in the mine’s development because of the legal battles, the entry price through Alliance has been reduced to 64c a share