Werner Muehelemann
Rio Narcea Gold Mines, Ltd.
RNG-T
WAIT
Mar 23, 2005
A Spanish gold and nickel producer. Just made a small gold acquisition last year. In a good position. Regulatory environment in Spain is pretty difficult and they just got approval foir their Spanish property. Would like to see a ramp-up of their production before buying.
Besides being a significant producer of gold in Spain, they are developing a nickel mine. Are going to have to start moving from open pit mines to underground. Prefers others.
This has been a troubled company. They were operating a few gold mines in Spain which were technically giving them a lot of trouble and nearing the end of their mine life. Then they made a nickel discovery. Had some startup problems, but think they'll work their way through that. Management has disappointed on many fronts.
Always dislike this company until 9-10 months ago. Had a history of missing production and over promised/under delivered. Have changed their style. Would like a couple of more quarters to prove they have really turn things around.