Rose Petroleum plc


That Was The Week That Was ?. In London, Australian and Canada

/images/minesite logo.jpgMinews. That was rather a negative week, wasn?t it London Correspondent?

LC. Yes it was with the markets already winding down for the Christmas break. The commodity markets suffered a sharp reverse with the price of gold giving up more than US$20/ozfrom the high to finish at US$433.40. As a result, most stocks lost ground and overall, the sector fell by just over 2.5 percent.

There was little new news to report after most companies had taken advantage of the previous week?s Mines and Money conference to update the market. One indication of how dull the trading had become by Friday was some very odd goings-on at, inevitably, Ascent Resources. It will be remembered that Ascent was the subject of some very odd trading shortly after its debut as a cash shell a couple of weeks ago. Anyway, for the first four days of this week nothing much happened, just a few shares changing hands. Came Friday and the stock suddenly went wild; at one point it was up by 80 per cent on the day though inevitably there was no news to support the activity. This time even the day-traders smelt a rat and by the close the stock had only gained 10 per cent. Was it just a mad moment by the market makers???

Minews. Any speeding ticket from the AIM authorities?

LC. No of course not. The week saw one new arrival, Falkland Gold and Minerals, which made its debut at 40p and by the end of the week had achieved a modest 9 percent gain to finish at 43.5p. Probably not the result that was expected by the multitude of small investors that participated - the bulletin board abitués were looking for a quick double.

Minews. Maybe they are coming to this senses and realise that when RAB Capital has a big holding it might just start selling stock.

LC Fair enough. There are still a few more stocks due onto the AIM before Christmas: Cluff Gold and Uruguay Minerals are definitely due next week and Maghreb Minerals and a couple of mining investment shells, Mincorp and Tower, have also signalled their intention to gain a quote. Cluff Gold is, unsurprisingly, Algy Cluff?s latest African gold exploration vehicle whereas Uruguay Minerals basically does what it says: it mines gold and explores for gold and other minerals in
Maghreb intends to look for zinc and lead in Tunisia and the shells do not appear to want to do anything very specific. It is interesting to note though that the proposed chairman of Tower, one Hugh Warner, is also CEO of our fun favourite, Ascent. Interestingly, Nabarro Wells is broker and NOMAD to both companies.

Not a lot to report in terms of major stock price moves; the best performance was a 25 percent gain to 12.5p by Vane Holdings. The move was accompanied by some solid trading volume though there has not yet been a news release in support and so the reason for the move is unclear, at least to this observer.