In This Issue
Lindian Resources - a new, high grade bauxite play
Given that there is so much talk about economic slowdowns and concern about the property market in Australia, our lead indices are performing quite well. They are off their highs and so you would expect a period of respite, but there seems to be a lack of real conviction in the markets at present. It is as if we are waiting for something more momentous to drive the markets, either way. There is nothing to complain about but also, nothing to enthuse. So, it is back to stock selection principles.
With a market capitalisation around $6m today, Lindian represents great leverage to what could be one of the world’s best bauxite orebodies with respect to grade and profit margin. There is the risk that the thickness will be lower than expected and the tonnage lower than believed, which would cause a moderation of enthusiasm, but the 34 hole drilling problem planned to commence in November will address this uncertainty. If the drill results are good the share price will certainly move much higher.
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