Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Smelling Gold In Vengold


Inside Wall Street

SMELLING GOLD IN VENGOLD

Despite inflation fears, gold stocks have failed to glitter. They have, in fact, been sorry losers all year. No matter, says Douglas Kass, research director at J.W. Charles Securities in Boca Raton, Fla. Bearish on stocks all year, Kass isn't necessarily a gold bug, but he's putting money on Vengold, a Canadian company with big stakes in mining properties in Venezuela and on Papua New Guinea's remote Lihir Island. The company has yet to post revenues. And its stock has been battered, collapsing from 12 in February to 3.

So why is Kass crazy for Vengold? He's convinced there is gold in its Oro Uno concession in Venezuela, mainly because the site abuts Placer Dome's Las Cristinas property, where more than 7 million ounces of gold were discovered last year.

Vengold's initial findings there proved disappointing. But, says Kass, Vengold has since discovered "significant mineralizations at Oro Uno--a potential kilometer of gold." Vengold's other prospect, Lihir Island, "boasts one of the world's largest gold deposits," says Kass. He expects Vengold CEO Ian Telfer to sign a pact soon with the Papua government for a license to explore on Lihir.

Vengold's stock is truly undervalued, says Kass, trading at a 60% discount to the company's asset value.GENE G. MARCIAL


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus