Rose Petroleum plc

Whatshot.com

24-December-2004

Two Companies with Decent Stories

/images/watshot logo.jpg In my own time as editor of WatsHot, which probably came after the peak of mining sector inflation, I only came across two companies with what I thought had decent stories. The first of these, River Diamonds (RVD) was already producing diamonds in Brazil. It has a Brazilian export licence and bank account there ? no mean feat, either ? and is processing more aggregate, and sticking its flag into other territories thought to be productive as well. I advocated a speculative purchase at 2.75p. The shares stand today at 2.19p.

Vane Minerals (VHL) was the second similar business that I happened upon. The management team there has been given access to the accumulated records of a US partnership, the original partners of which had greedily decamped having found a world class base-metal deposit big enough to command their full-time attention. The first Vane venture is a working Mexican gold mine, the cash flow from which is meant to finance the exploration of another (Mexican) territory which might have even more serious deposits of the yellow metal. The share price when recommended was 8.25p and now stands at 11.75p. For what it is worth I do not think that the rise merits a change in the recommendation.