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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (41929)	3/24/2011 3:55:39 AM
From: ValueGuy	Read Replies (2) \| Respond to of 78746

Whilst we're on the topic of gold, found out something interesting coming out of the Dodd-Frank Act re: "Conflict Minerals" (Section 1502). I've got some interesting links here. The overview from KPMG seems to be a good start to understand it anyway. kpmg.com commodityonline.com pcb007.com Per the KPMG slides "The Act's intent is to try and curb the violence and exploitation in the Democratic Republic of Congo (DRC) and neighbouring countries by exposing companies that use minerals derived from this region through disclosure and public pressure" "Metals covered commonly referred to as 3TG. They are Tin, Tantalum, Tungsten and Gold" "A company will be impacted by this rule if: - It files reports with SEC under the Exchange Act, and - Conflict minerals are "necessary to the functionality or production" of its products manufactured Even companies that don't file with the SEC may need to conduct due diligence on their supply chains, if they happen to be suppliers to impacted SEC filing companies these metals are widely used in several industries including Electronics and Communications, Aerospace, Automotive, Jewelry,Health care devices, Diversified Industrial Manufacturing" "Final rule is expected to be adopted by the SEC by April 2011. First reporting period is for fiscal year ending after April 15, 2012" "Supply chain due diligence required by the Act: Determine where 3TG metals are being used in products or processes at: - in-house manufacturing - Contract manufactures Conduct supply chain due diligence, 3rd party verification, and in some cases private sector audits on the sources of these metals - all the way down to mine of origin. Report out the findings of the due diligence on the company's annual SEC filings and website" IMHO, a bit over the top for my taste, though I can understand the reasonings behind these provisions. The larger tech companies seem to have implemented some things currently (such as Apple and Intel)...IMO this piece of legislation will be particularly burdensome on the smaller companies...but I guess that goes without saying

To: Madharry who wrote (41929)	3/25/2011 1:00:31 PM
From: E_K_S	Read Replies (1) \| Respond to of 78746

Hi Madharry - Repositioned some of my gold holdings. Sold 50% of my AngloGold Ashanti Ltd. (AU) and bought positions in the Market Vectors® Junior Gold Miners ETF (GDXJ) and started a tracking position in Richmont Mines Inc. (RIC). The value proposition is that as gold moves to new high, these small and midsized junior miners will become profitable and more importantly own mines with large reserves that become attractive for acquisition from the mega Cap miners (like AU). Therefore, my basket of junior miners are made up of from the GDXJ Index as well as my own addition in RIC (w/ a small tracking position). Market Vectors Junior Gold Miners ETF (GDXJ) vaneck.com The Market Vectors Junior Gold Miners Index - The index tracks the overall performance of foreign and domestic publicly traded companies of small- and medium-capitalization that are involved primarily in the mining for gold and/or silver. This is a reallocation trade for me into a more diversified basket of Junior mining stocks. finance.yahoo.com FWIW - RIC is family owned and operated. The family still owns a substantial stake of the company and have a vested interest to see their growth plans achieved. The company is profitable and currently has 1 million ounces of gold reserves and last year sold 70K ounces of gold. Their goal is to produce 200K of Gold/year and maintain a 5x reserve base. EKS