Global Stock Writeups

Lihir Gold is a pure gold producer with one of the largest single deposits in the world. Using a gold price of just $340/oz the company currently conservatively estimates the mine has reserves of 20m ounces of gold. The company's 2004 average realised gold price was $399 which together with cash costs to mine the gold of $299 suggests that the reserves alone are conservatively worth US$2bn, or roughly AUD2.00 per share. With the current share price at just over AUD1.00 and the likelihood that the gold price will increase and cash costs decrease in 2005, the stock is cheap in absolute terms.

Sedol	Type	Price	Date
6518596	Buy	AUD 2.642	31/03/2006
6518596	Buy	AUD 1.993	16/02/2006
6518596	Buy	AUD 2.12	17/11/2005
6518596	Buy	AUD 1.345	01/08/2005
6518596	Buy	AUD 1.091	11/02/2005

Lundbeck is a medium-sized pharmaceutical company which specialises in diseases of old age and the central nervous system. While earnings growth is currently very strong, there is a huge risk to earnings from 2012, when a large number of the existing portfolio of drugs face patent expiry. The late-stage research pipeline, which last year had still looked very strong, has suffered a series of disappointments, making it less likely that the lost sales can be replaced; we therefore decided to sell the stock.

Lundbeck. The pharmaceutical sector is trading at a 15-year-low, as the majors are plagued with patent expiries and more aggressive pricing regimes. Lundbeck benefits from a reasonably young portfolio of drugs that play well to current demographic trends - focussing on Alzheimer's, depression and Parkinson's disease, which should have above average growth rates.

Sedol	Type	Price	Date
7085259	Sell	DKK 114.88	15/08/2008
7085259	Buy	DKK 145.92	30/10/2007