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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (34225)	3/16/2009 9:56:38 PM
From: LoneClone	Read Replies (1) \| Respond to of 193836

Alliance could kick-start share price Shaun Harris Posted: Fri, 13 Mar 2009 miningmx.com [miningmx.com] -- SINCE expanding from mining information technology and software into more mainline mining support services, Alliance Mining has been a shareholders' dream. It ranks in the top 20 on the JSE's list of internal rate of return (IRR) - way ahead of most of the large mining groups that make up its client base. But that picture began to change towards the middle of last year as Alliance's share price went into a steep decline. It's a pattern that will be seen in many mining share prices, reflecting weaker commodity prices and the global economic crunch that's slowed exports. But it's particularly hard on a small cap AltX-listing. Last week Alliance reached 240c/share, a new low for the year. Its last financial results were strong, with turnover almost doubling and attributable earnings and headline earnings per share more than doubling. The company says it has a large order book. It also has some protection against the economic downturn through the diversity of the products and services it offers. However, Alliance still remains tied to the fortunes of the broader mining industry and right now prospects aren't too encouraging. Some capital spending projects are being cut back as the mining houses battle with high debt levels - and that's likely to also affect the support services Alliance offers. The company is currently under a cautionary announcement, as it was for most of 2008. That probably relates to a possible acquisition. Much of Alliance's rapid growth has been fuelled by acquisitions. If it pulls off a good deal it could be the spark to change the direction of its share price. But that's all pretty speculative. Investors with a positive view on the mining industry and not scared of a little risk will find its current low earnings multiple - about 1,3 times - and deep discount to net asset value of 350c/share attractive. There are other companies in the general mining sector on similar ratings. At least Alliance isn't tied to the prospects of one or two mineshafts.