Thursday tips round-up: Kenmare, Petropavlovsk, Ophir Energy

29th Mar 2012 06:53

Questor in the Telegraph ponders Kenmare, the Mozambique titanium dioxide miner with one main asset, the Moma mine. The company benefited from rising prices last year but production was difficult because the ore body at Moma started to show higher levels of clay, making dredging difficult. It is now negotiating short-term, six-month contracts to make sure prices reflect the underlying market. Questor likes the stock because "it is expanding production in a market where it has pricing power". Buy.In the Times, Tempus sifts through the results of Russia-focused gold miner Petropavlovsk. It disappointed markets in 2010 with over-bullish guidance, it is now being very cautious with production forecasts of 680,000 oz for 2012 which Tempus believes will almost certainly be exceeded. Debt is high but deliberately so as the firm looks to bring investment forward to cash in on low financing costs. Petropavlovsk's boss, Peter Hambro, argues his group produces roughly as much gold as Randgold Resources and yet is worth less than a quarter of the value. Tempus buys the argument: a long-term buy.Ophir Energy has been a big success story and Tempus is taking an interest today. Listing at 250p last summer, the company announced a share placing yesterday worth £151m at 495p. Part of the rise is due to a big gas discovery offshore Tanzania with partner BG group, and three more concessions in the same, highly prospective field. It really could be the big time as there may be enough gas in the area to justify a liquefied natural gas terminal - which would mean mega money. But with the shares having risen so sharply in just a year Tempus thinks some investors may want to take a profit.BSPlease note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.