HenriNostradamus (< 20)

Mongolia

October 07, 2011 – Comments (0) | RELATED TICKERS: EGI , IVN , RIO

Investing in Mongolia is very tempting and interesting. An undeveloped country with a lot of undiscovered resources. One of the most interesting projects is the Oyu Tolgoi mine that is build by IVN (Ivanhoe) with the help of RIO (Rio Tinto). The area holds tremendous copper, gold and silver deposits. In 2013 the mine will be productive and by then it will be one of the biggest active goldmines on earth. To be part of this great adventure the best way in my view is not to invest in RIO or IVN directly, but indirectly by buying some shares in EGI (Entree Gold). Entree holds all the land surrounding the OT-mine. EGI has an Joint Venture (JV) with IVN. This JV gets a cut in the revenue of the big mine (IVN in return has the right to drill and mine on EGI property). For EGI this is a great deal. No investment and guaranteed income the moment the mine start producing. Entree is probably the smartest goldminestock to own. I like companies that are run by smart people. Reason for me to own some stock and increase my holdings now the mine nears completion (next year).

HN