Emerging Markets 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 2.744	25/05/2006
6518596	Buy	AUD 2.80	24/05/2006
6518596	Buy	AUD 1.345	01/08/2005
6518596	Buy	AUD 1.091	11/02/2005

A small-cap trading and investment company, listed in London and operating across Africa, in airlines, tourism, infrastructure, bottled water and other trading. Dynamic and fast-moving, it is all-but impossible to model given that it is a regular dealer in assets. The profit drivers - capital flows to Africa, political stability and tourism, are all increasingly doubtful, so prudence dictated the taking of good profits.

Lonrho (Africa) is one of two successor companies to Tiny Rowland's old African giant, Lonrho. Two years ago the company's assets consisted of only one hotel in Mozambique. Under a new CEO the company is being rebuilt, making acquisitions across a range of infrastructure-related companies throughout the African continent. Major projects include Luba Freeport (the only natural deep water port in the oil-rich Gulf of Guinea) and South African air freight company Norse Air, which has won prestigious contracts with the UN and South African Government.

Sedol	Type	Price	Date
0256881	Sell	GBP 0.44	11/01/2008
0256881	Buy	GBP 0.34	15/05/2007
0256881	Buy	GBP 0.33	11/05/2007