Any gold bugs in here?

[Chadman]

Hey, guys. A couple of years ago - three, I think, I had a pretty good sized part of the portfolio in small smaller gold mining companies, did very well at the time, sold and moved on. Have been thinking that some of these companies must be doing ok considering the high price of gold, and thinking that with the uncertainty in the world financially at the moment that gold could push even higher at least in the near term. That being said...

Are any of you currently invested in any of the gold mining companies? Care to share thoughts on any, if so? I plan to spend some time in the next few days revisiting some old haunts and checking it out. As I recall, the gold bugs in general tend to me a bit more hysterical and promoting than other investing sectors, and thought I'd ask the general population here for thoughts before I head for the "bugs" again...

For the record, I understand the basic concept of what makes one company more able to take advantage of high prices - leveraging and future contracts, etc. Cost to produce, etc. Would think that most are turning a profit right now if they are not completely under existing low price contracts.

 

[DOGS THAT BARK]

Never been one myself Chad--do own one stock in company that has some gold resources but is very flexible and player in other metals and refining coal
ANGLO AM PLC ADR (NasdaqCM:AAUK)

 

[DOGS THAT BARK]

--appears above is liquidating positions in gold--I like the move--and believe it will be postive for stock.

LONDON - Anglo American, the world's second-largest miner, seems to be set on delivering on its promise to focus on core businesses, quicker than had been expected.

The London-based company said that it would be selling 67.1 million shares in AngloGold Ashanti (nyse: AU - news - people ) , reducing its stake in the world's third-largest gold miner by more than half, to 17.3%, from 41.8%. It had been expected to sell 61 million shares. It said that it hopes to raise $2.9 billion from the sale.

Anglo American (nasdaq: AAUK - news - people ) was trading down 10 pence (20 cents), or 0.3%, at ?33.50 ($68.29), in morning action in London. Shares in Johannesberg, South Africa, based AngloGold were trading up 6.5 rand (94 cents), or 2.1%, at 310.00 rand ($44.43), after falling sharply the day before.

Earlier this year Anglo American's new chief executive, Cynthia Carroll, announced plans to reduce and eventually sell off the entier stake in the gold miner, as part of a restructuring plan that will see the company refocus on some of its key businesses such as platinum, base metals, coal and diamonds. In August, the company announced plans to sell off Tarmac, its building-materials division,l for $6 billion. (See: " Anglo Strikes Gold With Buyback And Sale").

Carroll joined Anglo American in March from rival Alcan and is ranked No. 7 on Forbes' list of the world's most powerful women.

In a note to clients, Nomura analyst Paul Cliff said that Anglo American could use the money that it raises from the divestiture to buy the whole of Kumba Iron Ore (other-otc: KIROY - news - people ), in which it already has a 65% stake. "We have long argued that such a move would be value-accretive for Anglo American and would represent a strong strategic move by Anglo?s chief executive, Cynthia Carroll."

The plans have been welcomed by analysts, who view it as an opportunity for the company to catch up with rivals such as BHP Billiton (nyse: BBL - news - people ). The consolidation which has been taking place in the sector, with Rio Tinto (nyse: RTP - news - people ) making a $38.1 billion offer for Canada's Alcan (nyse: AL - news - people ), will require Anglo to keep its value high or risk being swallowed up by competitors.
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