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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (4594)	3/26/1998 4:49:00 AM
From: Joe Sing	Respond to of 7966

Sorry, red, hope you didn't report this one: RBC Dominion and SMK Securities analyst, Hilton Ashton (based in South Africa), authored Diamond Industry Review on 17 February 1998. In it, he explains the World diamond market is "bad" or "poor." Accordingly: We remain concerned that De Beers' share price is not fully reflecting the forcast decline in earnings this year. Accordingly, we continue to recommend and underweight position and believe there will be opportunities to buy the stock later at lower levels. We rate De Beers a SELL. Yet, he adds: Canadian Stocks such as Aber Resources, Mountain Province and Rex Diamonds, and South African Stocks such as Trans Hex, Ocean Diamond Mining and Benco should be accumulated. Elsewhere he actually says "BUY" The following passage is especially interesting: Ashton Mining of Australia reported record producction of 13.3 million carats for the fourth quarter, bringing its total production for 1997 to 40.2 million carats. The company is still looking a its option to extend the mine's life, which ends in 2003. Both surface and underground option are being considered. Its 62% subsidiary, Ashton Mining of Canada, has some encouraging results on its Buffalo Hills project in Alberta, Canada. Recently it reported 35.4 ct/100 for stones >0.8 mm from the K91 pipe sampling. More sample results will be collected. A budget of C$10 million has been approved for further explration in 1998. Our target price for Ashton is AU$1.40 per share. SELL. He suggests a weight of about 2 percent for Ashton Mining Canada. DDM and ABZ, in contrast, are pegged at 10 and 9 percent, respectively. The points: 1. AML is cranking up production in a declining market. 2. AML is motivated to find another mine. 3. Although we're very excited about it, AMC effort have not yet gained the sort of international attention that will focus huge investment dollars on the ultimate outcome. Perhaps this last point will be addressed and next months International Kimberlite Conference in Cape Town.