GTM giants reef mining limited

australian gold mining stocks - article on gold ea

  1. dub
    32,243 Posts.
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    Thought some might be interested in this article. The full version with charts can be found at

    This is an American site, and the writer tells people how to find/track these particular stocks are "ridiculously cheap" and "very undervalued".

    Gold Eagle has a tremendous number of hits/week. As a consequence, some of these might become flavour of the month outside Australia.


    Australia - A Selection of Mining Stocks

    Clive Maund


    While the great gold bull market has been slowly gathering pace, and silver has been completing its base ready for its bull market, many mining stocks, especially in the Canadian and US markets, have been putting in a fine performance. Not so the Australian mining stocks, which have been blighted by currency considerations resulting from the strong Australian dollar. The result of this is that many Australian mining stocks are ridiculously cheap, a fact which has not escaped the notice of the smart money who, after quietly accumulating these stocks in a dignified manner earlier in the year, have been falling over themselves to pile into them over the past 6 weeks or so. They are clearly voting that the currency aspect has been taken account of already, and has been overdone, and are also voting that these underpriced stocks are going to go up substantially. I am happy to follow the footprints of the smart money, and, as I am not from Missouri, I don't always have to know the reasons why they are doing what they are doing.

    What matters to me is the charts, and the charts are saying that Australian mining stocks are very undervalued, are being bought up aggressively by the smart money and are going to go up a lot. If you are a manager of an Australian mining company reading this, I'd like to tell you it's time to stop firing people and selling off equipment - the light at the end of the tunnel is growing.

    There follows a selection of strong stocks, which have been brought to my attention by Australian and New Zealand readers. There are, presumably, many other strong stocks, which I don't yet know about.

    The Stocks

    Bolnisi Gold NI

    Bolnisi has silver interests as well as gold. This is a very bullish chart, although the stock is short-term overbought, having risen from about $0.20 to over $0.30 over the past five weeks. There were very positive volume indications on this advance. Rose to a 9-year plus high over the past week or two, and, with no overhead resistance this is considered to have great upside potential in the gold and silver bull market. A buy on any reaction. The spike on the long-term chart in 1994 is a chart aberration.

    BSG (Sydney ASX) AU:BSG in Bigcharts, closed $0.315 on Friday, 5th September 2003

    Giants Reef Mining

    Marvellous chart. Very powerful breakout in July and August from long low base to kick off a major bullmarket. Considered a strong buy on the current reaction, and a very good investment for the medium and long-term. Very large upside potential.

    GTM (Sydney ASX) AU:GTM in Bigcharts, closed $0.08 on Friday, 5th September 2003

    Macmin Silver

    An Australian silver play. Macmin is lifting out of a long, low base, the lows of 1999 and 2001 comprising a large double-bottom formation. Now looking strong with positive volume indications. Expected to really get moving once it clears $0.15. With a big rise in the price of silver expected, this should prove to be a very worthwhile investment.

    MMN (Sydney ASX) AU:MMN in Bigcharts, closed $0.12 on Friday, 5th September 2003

    Pan Australian Res

    Superb chart. Very powerful breakout in July and into August. Nice entry point now with it having reacted back from approx. $0.13 to about $0.09. Huge upside potential.

    PNA (Sydney ASX) AU:PNA in Bigcharts, closed $0.095 on Friday, 5th September 2003

    St Barbara Mines

    Another great chart. Turned the corner in July and August with a high-volume breakout above the 200-day moving average. Is now consolidating the breakout and allowing the 50-day moving average to catch up. Given the bullish look of many Australian mining stocks, I don't think this will hang around too long before it advances anew. Good entry point now. Huge upside potential with very favourable risk-reward ratio.

    SBM (Sydney ASX) AU:SBM in Bigcharts, closed $0.083 on Friday, 5th September 2003

    Yamarni Goldfields

    Strong chart. A very powerful breakout in July has turned the 200-day moving average up. Although a very low-priced stock it is clear from the volume figures that there is a large amount of stock in issue - it would be worth knowing to what extent the quantity of stock in issue has grown over the past four years.

    YAM (Sydney ASX) AU:YAM in Bigcharts, closed $0.014 on Friday, 5th September 2003

    Clive Maund, Diploma Technical Analysis
    [email protected]

    Kaufbeuren, Germany, 8th September 2003

    No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.


    (I hold some of these)
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