SGW sons of gwalia limited

***sgw vs oxr why its better***

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    Shares on issue 166 million, market cap approx $500million.

    Produces approx 500,000 ounces gold/pa

    Produces profit

    Produces tantalum - important component of mobile phones and other electronic devices, with the upcoming 3G boom it should be well positioned to capitlise. Tantalum production 2.1 million pounds.

    Exposure to mineral sands eg titanium via murray basin

    SGW has been to $9 before, currently on a potential upswing in price.

    Was Ferret's stock to watch early July 2003

    in comparision -------------------


    Shares on issue 928million shares

    Market cap approx 613million on today's price of 66c

    Mines in potentially unstable Laos area (south Asia)

    Production of 42,000 ounces of gold for the quarter, so if multipled for a year would only be approx 170,000 ounces.

    Unlike SGW, OXR is still making loses, SGW is making profit.


    sons of gwalia has only a small interest in titanium through the murray basin mineral sands operations with bemax and some of its own tenements - mainly it is tantalum that gwalia mines, and gold.

    actually it mines more gold per annum than oxiana which everyone seems to love, and has a lower market cap than oxiana because oxiana has a lot of shares on issue - 915 million in fact. oxiana pulled out about 42,000 ozs of gold last quarter, when gwalia is pulling out about 500,000 ozs. gold per annum in australia, not loas where it is possible there could be an uprising or two or three over the life of the mine there.

    on top of that gwalia has tantalum in which it has reserves for 50-60 years of current production, and has above 60 per cent of the market due to problems in getting coltan - tantalum - out of the democratic republic of congo due to rebels gaining control of the mines rich in coltan in the east of the country. gwalia has reduced its stocks of tantalum significantly over the last half, and is capable of expanding production significantly if required. demand in the supply chain for tantalum powder is improving with stocks being drawn down over the past months from a situation of slight over supply. also the congo situation has limited supply from the congo as european buyers are scared of protests about buying illegal coltan from the rebels in the congo.

    all these factors, and a small share issue, 166 million shares are positives for sons of gwalia - the small share issue is positive indication of a low market cap., and therefore further evidence of a likely appreciation in the share price in the future.

    the only negatives are the hedge book, which has been partly closed out- and possibly with a higher australian currency might swing closer to the positive as has newcrest's hedge book lately.

    sons of gwalia has definitely graduated of late from son of frankenstein earlier this year to now being son of the king. a good buying opportunity at the early part of the upswing.

    My opinion only, please do your own research
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