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SideShowMel0329 (96.67)

Question about high current ratio for some gold miners

Recs

4

October 14, 2009 – Comments (2) | RELATED TICKERS: ANV , XRA , GG

Two of my biggest shorts, ANV and XRA, have great current ratios (2.64x and 20.80x, respectively). But neither of them have a lot of raw materials in inventory. All of their current assets come from their cash and short term investments.

This isn't the same for more well known miners like GG or KGC, who have roughly the same amount of cash/short term investments as they do assets in inventory (which I assume are raw materials like gold).

 

Is this common for mid cap gold miners? Are they trying to beef their balance sheet without adding gold to their inventories? Have you seen this before? What type of current account do you prefer?

 

Thanks.

2 Comments – Post Your Own

#1) On October 15, 2009 at 7:33 PM, Teacherman1 (92.21) wrote:

I looked and will give you a rec, but the only gold I own is in my safe deposit box in the form of coins.

I don't follow or invest in gold mining stocks, so I don't have any comments.

If you had embedded this blog in your current one, maybe someone would have clicked on it.

Most will not go to the trouble of chasing it down.

Personally, it looks to me like Google may lap Gold, the way they are going.

Good luck with your picks, in Caps and in Real Life. 

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#2) On October 16, 2009 at 3:39 PM, SideShowMel0329 (96.67) wrote:

Thanks for the comment, it's hard to get responses on CAPs

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